Savings are considered to be one of the most fruitful habits that certainly prove to be beneficial in the long run. If you want to live a financially secure life soon, you must know the proper way to save and grow your capital.
With such savings, you can tackle the various uncertainties that may occur during your life. However, saving money isn’t as easy as it sounds, especially in the present era. If you’re also unaware of where and how to save your money, you’re at the right place. In this article, you’ll find out how guaranteed savings plans are a smart choice for smart savings.
While preparing for financial security isn’t a cakewalk, proper brainstorming and careful selection of a good savings plan such as a guaranteed savings plan can surely help you safeguard a prosperous future for your loved ones and allow them to live a financially independent lifestyle.
There are several different types of savings plans available in the market to help you fulfill your aspirations and dreams. However, the percentage of returns you gain through a particular plan depends on your choice of investment.
To establish all-around financial security, guaranteed savings plans are a prominent way. With that said, let us take a look at the unparalleled features of these plans, along with a list of some of the most prominent ones available in the market.
Best Features of a Guaranteed Savings Plan for a Comfortable Future
A guaranteed savings plan allows you to lay the foundational blocks for a promising future for your family, without compromising on your present lifestyle. All you have to do is save a portion of your salary for a specific time and then enjoy guaranteed returns on your investment.
Although there are several other savings plans available in the market, the guaranteed savings plans offer great flexibility and better returns as compared to others. Here’s a complete list of some of the most prominent benefits of this plan that leads to a comfortable future:
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Death Benefit
These plans offer death benefits in the event of your unfortunate demise to your selected nominee, provided that the policy isn’t terminated. The benefits offered include the assured sum of the death benefit, along with guaranteed yearly add-ons that you’ve paid before your death.
Once the benefits are given to your selected nominee, the policy will be terminated successfully and no other benefits shall be received at this point. With this feature, your family can lead a comfortable future, even when you’re no longer with them.
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Maturity Benefits
The plans also offer a guaranteed sum assured on the maturity of your plan. The maturity benefits consist of both guaranteed loyalty addons and guaranteed yearly add-ons that you’ve collected throughout the tenure of your policy.
Depending on the maturity age of your plan, these benefits are transferred to you, given that all your premiums are paid and no expenses are due regarding the policy. With such a large sum of money, you can fulfill the dreams and aspirations of your life that require financial support.
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Loan Availability
If you face an urgent need for liquidated funds, you can use the loan availability feature of guaranteed savings plans. This feature allows you to borrow a minimum sum of Rs. 20,000, which can go as high as 80% of the total surrender value of your plan.
The facility is available only for people who have an active policy. This means after you’ve completed the tenure of your policy, you can’t gain this benefit. With this loan availability feature, you can easily tackle situations where you have an urgent requirement for monetary funds.
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Premium Boosters
Based on the number of premiums you’ve deposited against the policy in a year, you’ll receive a premium booster feature that allows you to grow your accumulated corpus even more, and align it with your life goals.
The percentage of increase that you’ll likely receive through this feature depends on the amount you’ve deposited in the plan annually. Therefore, make sure you confirm the figures at your preferred insurance company.
Tax benefits
As per the prevailing laws of Section 80C of the Income Tax Act of India, the premiums that you’ve paid for the benefits offered by the guaranteed savings plan are completely free from taxes. Moreover, as per section 10D, the maturity benefits are also exempted from taxation.
Through this feature, you can save a lot of money from getting burned due to taxes and accumulate an overall large corpus of money. This accumulated wealth can be used for all your monetary needs, whether it is the education of your child or starting a business.
Best Guaranteed Savings Plans Available in India
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Canara HSBC OBC – Guaranteed Savings Plan
This plan by Canara HSBC OBC offers guaranteed benefits, along with a complete life cover for the complete policy term in return for premium payments for just a limited time. Moreover, you can also choose your desired payment term for added flexibility. The plan is also eligible for tax benefits as per the mandates of the Income Tax Act of India, 1961.
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PNB MetLife – Guaranteed Savings Plan
This guaranteed savings plan provided by PNB MetLife helps you protect your loved ones from uncertainties that may occur in the future through a comprehensive life cover that can be availed by your nominee in the event of your death. Moreover, on the maturity of the plan, you gain assured benefits along with guaranteed additions.
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HDFC Life – Guaranteed Savings Plan
The HDFC Life Guaranteed Savings Plan is a non-participating and non-linked endowment policy that tells you the maturity value even before you begin investing in the plan. The death benefit assured is also guaranteed to be at least ten times more than your annualized premiums.
The Takeaway
While there are several financial instruments available to invest your capital, saving plans are the best bet to beat inflation and gain the most out of your invested capital. Therefore, make sure you take a look at the benefits and plans stated above to zero in a policy that works the best for you.
