Benefits of Buying Guaranteed Savings Plan

Did you know that one of the best ways to grow your income yet stay safe from market-related fluctuations and risks is with the help of a guaranteed future plan or a guaranteed savings plan. A guaranteed savings plan is a must-have in your financial portfolio if you want the dual advantage of life insurance protection and secure wealth creation. As a long-term savings plan, it helps you fulfil your life’s goals. However, there are other benefits of a guaranteed savings plan that are worth discussing.

What are the benefits of a Guaranteed Savings Plan?

1. It gives life insurance protection to your loved ones.

One of the best features of a guaranteed savings plan is the life insurance cover it provides. In the case of your unfortunate demise during the term of the plan, your family receives a guaranteed monetary benefit (called a death benefit). This lump-sum benefit aids in extending that much-needed financial security to your loved ones in your absence. You can get a guaranteed savings plan online and offline at your convenience.

2. It helps create a sizable corpus for your goals.

A guaranteed future plan helps you fulfil the goals you have for yourself or your family. It does this through systematic savings and wealth creation. Apart from working as a medium to park your income, it gives you:

• A guaranteed sum assured (from 70% to 130% of the base sum assured under the plan)
• And guaranteed additions (increased returns) at a rate of 5%, 7% or 10% that corresponds to the premium payment term

So, each year (provided you pay the premiums at the due time), your funds increase at the designated interest rate for the entire duration of the premium paying term. You receive this accumulated wealth (called a maturity benefit) at the end of the policy term to use as per your discretion for milestones such as a child’s higher education or marriage, your or your spouse’s retirement, a family vacation, and so on.

3. It safeguards your family against unforeseen events.

Not only does a guaranteed savings plan give you a death benefit to your family in case of your demise, but it also comes with additional riders for extra protection against unforeseen events. For instance, if the reason for your death is an accident, then you can get an additional sum over and above the base death benefit on the payment of more premiums. Or, if you are diagnosed with a critical illness (as per the illnesses listed in the guaranteed savings plan), you can get an additional sum over and above the base sum assured promised to you.

4. It is free from market-related risks and full of extra benefits.

Irrespective of whether you buy a guaranteed income plan online or offline, it is free from any market-linked risks. Being a non-linked investment product, it is suitable for those investors who prefer to take on no loss against their income and get mid-level returns. Moreover, this long-term savings plan has a surrender option where you are free to discontinue the plan (after two years of paying the premiums). Thereon, you get a monetary value known as the surrender value upon ending the plan. Furthermore, you can also take a loan against the guaranteed future plan once it acquires a surrender value (that is 2 years after the payment of premiums). The maximum amount of loan you can get is 90% of the surrender value. This way, you can fulfil both short-term and long-term goals and also have enough for an emergency.

To sum it up

A guaranteed savings plan is the perfect investment tool if your risk appetite is low yet your financial aims are near high. Compared to traditional investment avenues such as fixed deposits or the national savings scheme, a guaranteed savings plan is a double benefit.

Giving you the twin benefit of life insurance protection and wealth creation – this plan is the right aid to fulfilling your dreams and responsibilities towards yourself and your family.