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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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