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Why is it a great idea to buy a Guaranteed savings plan?

dateKnowledge Centre Team dateDecember 05, 2020 views143 Views
Why is it a great idea to buy a Guaranteed savings plan?

When the word "plans" comes to our minds, what is associated with that word? The term plans are something most talked about nowadays. The best way to back your future is a Savings plan. These plans are considered the best investment methods by experts.

So, what is a savings plan? And what is the best option for a Saving plan?

A savings plan is an insurance plan that helps an individual to gather and set aside a reserve pool for the future. They ensure returns when the policyholders need it the most. It is a systematic and disciplined plan.

Why do we need a Saving plan?

Age and term:

These plans are flexible and can be molded according to the age of the holder. For example, for a young person, the risk-taking factor may be high so that they may be suitable for unit-linked insurance plans (ULIPs) and those who can't afford risks like money back or endowment plans. The long term plan also allows securing a minimum amount during the policy term.

Life covers and provisions:

Some plans like ULIPs offer life insurance and another benefit of savings return. Other provisions provided by ULIPs are the protection of the holder and his family against any loss like accidental death, disability, and illness.

Options of investment:

They offer investment in tools like equities, including fixed interest securities, including corporate bonds, government securities, and money market instruments.

Saves tax:

Like most plans, Saving plans also offer tax benefits. According to section 80c of the Indian Tax Act, 1961, a policyholder can save up to 1.5 lakhs. Maturity and death benefits are also eligible for tax exemption under 10D of the Indian Income Tax Act, 1961.

Helps in meeting specific goals:

Some of these plans are designed towards meeting the goals of policyholders, like education goals for children.

Types of saving plans:

Invest 4G Plan

In life, you are always the winner, and you never settle for second. So for you, we will provide you with this plan. This plan will provide benefits to your family members in case of your sudden demise. Even if you are a young person or an older adult, this plan will always stick around for your life.

Titanium Plus plan

This plan acts as your protection and protects your hard-earned money, and also provides overall saving benefits. This plan is controlled by you and customized according to your needs.

Guaranteed savings plan

This savings plan provides you with financial security with many more benefits.

Smart Lifelong Plan

This plan creates a protective cover for your life, along with creating wealth as well. This plan will help you avail all benefits in different stages of life.

Smart Future Income Plan

This smart plan will help you in your golden years. It will act as your lifelong companion and assist you in meeting your life goals.

Insure Smart Plan

It's a unit-linked insurance plan. It will provide you with flexibility and benefits in achieving all your aspirations.

Future Smart Plan

Are you worried about your child's future, this plan is just right for you. This policy stays around your child when you can't be there.

Grow Smart Plan

There is a unit-linked plan for providing insurance cover for your all life—an affordable plan with limited premium and more benefits.

Guaranteed Income Plan

You want to fulfill all your child's plans, and you lost your job. In this case, this plan acts as your child's guardian and provides him with benefits.

Jeevan Nivesh Plan

This plan is provided with life insurance cover, along with savings in a single affordable plan.

Money-Back Advantage Plan

This plan provides you with a cashback payout within the policy to guarantee a lump sum on maturity with bonuses.

Guaranteed Savings Plan:

This plan allows you to fulfill all your life goals, like completing your children's education or marriage. This plan will benefit you with assured returns regardless of the downfall of the markets or insurance companies.

We are presenting you Canara Bank's guaranteed savings plan with flexible and assured benefits.

Given are three options that you can choose within this plan :

  • Guaranteed savings plan
  • Guaranteed savings with double protection
  • We have guaranteed savings and premium membership.

You can choose any one plan in the beginning, but you can't alter them after that.

Why is a savings plan essential?

  • Will provide benefit on maturity that all your dues are paid.
  • The guaranteed plan covers you for your life rather than pay a premium option, which is limited.
  • You can choose enhanced protection for your family. Provides benefits upon sudden death; all other premium plans are not payable and guarantee services on maturity (Premium Protection Option).
  • You can choose a flexible payment term according to your requirements.
  • Investors can customize savings and goals according to their Income.
  • Value plan with the premium booster.

How does a savings plan work?

Investors can customize their policies according to their goals and requirements in just three simple steps:

STEP 1: CHOOSING YOUR PERFECT PLAN

According to the investor's financial need, plans can be selected :

  • If they want a life cover within the policy term and lump sum after maturity, they can choose the "Guaranteed Savings plan."
  • If they want enhanced protection with policy benefits and lump sum after maturity, then we can recommend "Guaranteed Savings plan with Double protection" (with sudden accidental death additional amount is given, but in case of other deaths, no amount is paid)
  • And if you are thinking about your child's future, then a "guaranteed savings plan" with "premium protection" is available.

STEP 2: CHOOSING YOUR PREMIUM AMOUNT

You can choose the amount you are comfortable with available at your maturity policy to compromise your financial needs.

STEP 3: CHOOSING YOUR PAYMENT TERM AND PREMIUM PAYMENT

This step will determine how you will choose your payment plan, preference, savings, along with your future goals.

Benefits :

The benefits will change and vary according to the specific plans. Some of the services are given below:

Assured amount of sum on the death, which is a slightly higher amount:

  • You will get 11 times of annual premium
  • 105% of Total Premiums Paid as on date of death, or
  • Guaranteed Sum Assured Maturity, or
  • The reassured amount is paid on death

Survival benefits

The investors can avail of all the benefits at the end of policy years after completing premium maturity. Your guaranteed income will be equal to annual Income with boosters if applicable.

Premium payment term Policy term Total number of income payouts Timing of income payouts Income payment percentage Basic Guaranteed annual income
7 12 5 End of Policy years 140% (The income payout percentage ) × annualized premium
10 15 5 End of Policy years 200% Income payout percentage× annualized premium

Maturity benefits

If you survive through the end of policy ( your dues are fully paid ), then you will receive guaranteed savings at the end of maturity. Then you cannot avail any benefit, and your policy will terminate.

Death benefits

In case of your sudden demise ( within the policy period), your heir will receive all your amount payable, and after that, your policy will terminate. Plus, your survival benefit that is already paid will not be deducted.

Loan facility

In sudden need of cash, you can take the loan amount under the surrender value. The minimum amount of loan is about 20,000 and is the maximum 80% of the surrender value. Loan can only be availed at in-force policy.

High premium boosters

Guaranteed annual income will increase with high premium boosters.

Annualized premium High premium boosters ( as % of basic Guaranteed annual income)
Less than 2,00,000 Nil
Greater than or equal to 2,00,000 to less than 5,00,000 1.00%
Greater than or equal to 5,00,000 to less than 10,00,000 1.75%
Greater than or equal to 10,00,000 2.00%

What's the age criteria?

Guaranteed savings option

Parameters Minimum Maximum
Entry age (life assured) 0 years 60 years
Maturity age 18 years 75 years

Guaranteed savings with double protection option

Parameters Minimum Maximum
Entry age (life assured) 18 years 55 years
Maturity age 28 years 75 years

Guaranteed savings with premium protection option

Parameters Minimum Maximum
Entry age ( life assured) 18 years 55 years
Maturity age 28 years 75 years

GUARANTEED SAVINGS WITH PREMIUM

  • Maturity benefits
  • Death benefits
  • Guaranteed Yearly addition

It's never too late or even early to invest in a savings plan. With a guaranteed saving plan, you can live your life without worrying about anything. To achieve this goal, you will need Canara Bank guaranteed saving plan.

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TERM Insurance PLAN

Whole life cover option available

Increase your life cover with changing life stages

Return of premium & in-built protection options

Multiple premium payment options

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Unit Linked Insurance Plan

8 funds and 4 portfolio strategies to invest

Loyalty additions and wealth booster

Return of Mortality Charge is available on Maturity under all three cover Options

Flexibility of switching between the fund options to take benefits of market movements or change in risk preference

Pos Easy Bima Plan

Top Benefits

Hassle free

Get double life cover in case of accidental death

Choice of flexible premium payment and policy term

Avail tax benefit on premium paid

Frequently Asked Questions

What is saving plan?

A savings plan is likely to be different for everyone depending on the financial goal, risk profile, returns, and investment horizon. If you are young and want to save for your retirement, ULIPs like Invest 4G or Titanium Plus plan would be the best option. You are likely to create a large corpus by your retirement through market-linked returns if you invest in this savings plan. If capital protection is your aim, then traditional insurance plans such as Guaranteed Money Saving Plan should be suitable for you.

Who should invest in a Savings Plan?

If you are looking for a guaranteed income plan, then saving plans should be on your list of investments that you are planning to make. Savings plan require you to invest a pre-decided amount on a regular basis. People with a regular stream of income who require a lump-sum amount after a period should opt for a savings plan. Working professionals, self-employed people and businessmen should consider a savings plan to meet their long-term financial obligations. Saving plans are also ideal for people who are risk-averse and want to accumulate funds through relatively safer mediums. These saving plans inculcate financial discipline in policyholders which make them crucial for every portfolio.

How much money should you put in savings each month?

The amount that should be invested in a savings plan each month depends on the income, existing financial obligations and the long-term financial goal. If you have a steady income, you should save at least 20% of your monthly income. It is not necessary to invest your entire money into a savings scheme as investments should be diversified. Ideally, you should aim to have a financial buffer of over 10 times of your annual income. Choose an income plan based on your financial circumstances to stay afloat.

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What is the difference between saving and investing?

Saving is the money that you keep aside for emergencies or for buying any big-ticket item. Investing means growing or multiplying the wealth that you have by buying savings plan, or any other assets. Buying a savings plan will help you in achieving your investment goals such as retirement, your child’s higher education or marriage, or for buying a new house.

Which savings plan is best for retirement?

The Invest 4G plan with its multiple investment options and various portfolio management strategies for capital protection is an ideal saving plan for retirement. Also, Guaranteed Income4Life is also another savings plan that you can consider for building your retirement corpus as it acts as a guaranteed income plan that will provide you maturity benefits to manage your post-retirement expenses.

Which savings plan is best for long-term goals?

Smart Goals Plan is a savings plan with its unique features such as modification of the sum assured partial withdrawal and fund switch can help you plan for your long-term financial goals. Canara HSBC Oriental Bank of Commerce Life Insurance offers a wide variety of saving plans that you can invest in as per your risk appetite and investment goal.

Which savings plan is suitable for girl child?

The Future Smart unit-linked plan from Canara HSBC Oriental Bank of Commerce Life Insurance is the ideal savings plan for the girl child. Monthly Income Advantage Plans are also a good option if you are planning to invest in a savings plan for your girl child.

Where should I invest my money?

You should spread your investments across financial instruments. However, having the best savings cum guaranteed income plan in your portfolio is extremely important. Savings plan ensures financial stability and also helps in fulfilling short, medium and long-term monetary goals.

What is a monthly income advantage plan?

A monthly income advantage plan ensures that you lead a stress-free life with your loved ones as it provides a life cover along with giving you guaranteed monthly income. In short, it is a life insurance and income plan that will financially secure commitments made to your loved ones. Canara HSBC Oriental Bank of Commerce Life Insurance Guaranteed Income Advantage Plan is a monthly income advantage plan that provides life cover for the entire term while you pay premium only for a limited period.

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What is a good age to start saving money?

When you plan to invest in a financial product, it always pays well to start early. The earlier you start saving and investing, the better. When you start investing early, the capital gets adequate time multiply. Even a small amount invested for a long time can give substantial returns due to compounding in a savings plan. Invest in an income plan as early as possible to build a significant corpus that will later help you in life. Ensure that you buy the best saving plan in India that can be aligned with your investment goals.

Should you use a savings plan for retirement planning?

Yes. Retirement planning is one of the most important financial decisions of our lives. The best saving plan offers a host of features that may help you build your retirement corpus. Some of the saving plans like Guaranteed Income4Life offer guaranteed returns at policy maturity. Such returns can act as a regular income stream even after your retirement to help you stay financially stable.

Are saving plans beneficial for managing unexpected expenses?

Yes. Best saving plans in India offer partial withdrawal system that can be utilized during your rainy days. Being financially prepared to tackle such odds will help you manage any unforeseen expenses in a smooth manner. Buy a monthly income advantage plan that will generate a steady source of income for you to take care of both long-term and short-term financial goals.

How to save tax by using savings plan?

Saving plans are known for helping us achieve our financial goals. Best saving plans allow you to grow your wealth while providing life cover. Saving and investment plans are also beneficial for tax planning. Premiums of savings cum protection plans come with tax benefit under Section 80C of the Income Tax Act. Moreover, proceeds received upon the death of the policyholder or upon the maturity of the policy are tax free under Section 10 10(D).

What is the right age to start saving money?

When you plan to invest in an income plan, it always pays well to start early. The earlier you start investing in a savings plan, the better. When you start investing early, the appreciation in capital is significant. Even a small amount invested in the best saving scheme for a long time can give substantial returns due to compounding. Buy the best savings plan as soon as you start earning to achieve all your milestones on time.

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How a savings plan can help in building your child’s education fund?

Saving plans help in building wealth over time against the investments that you make. Buy the best savings plan to build an education fund for your child. The best saving plan for kids offered by Canara HSBC Oriental Bank of Commerce Life Insurance eases the stress of planning your child's future by providing a lump-sum payout on the investment. Consider investing in a monthly income advantage plan to assist you in fulfilling your financial goals.

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How Savings Plans by Canara HSBC Oriental Bank of Commerce Life Insurance can help you?

Every person has a unique reason to save and invest. With ULIP savings schemes, the company caters to people seeking wealth creation through capital appreciation. Contrarily, the traditional plans can help you save for important life goals without worrying about the fluctuation in fund value. All major savings plan offers partial withdrawal facility that can help you take care of unplanned contingencies. With savings plans from Canara HSBC Oriental Bank of Commerce Life Insurance, you get adequate flexibility while investing and receiving the savings benefits, which makes them a good investment choice for investors looking for income plans.

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