In the world around after the covid times, people have understood the meaning of life. They know in length and depth, that nothing but money plays a vital role in life.
No wonder why people have started living each day because they believe that life is nothing but all about being happy and building securities in life. Well, being happy is not planned but creating securities is. To feel protected, it is important that you have money for the unexpected events that can hit around anytime. And to have sufficient money keeping away the games of profit and loss, you should have a savings insurance policy.
A savings life insurance policy offers dual benefits of savings and protection in a single plan. You can buy the plan keeping in mind different life goals. The policy provides you an opportunity to save in a disciplined manner. If a life insured passes away within the policy term, the insurance cover provides financial protection to the nominee.
There are different life insurance policies that come with distinct benefits. But why do people prefer a savings plan? It is because a savings plan comes with guaranteed benefits.
Let us now explore a guaranteed savings plan.
What is a Guaranteed Savings Plan?
A guaranteed savings plan is a non-linked non-participating policy that promises to pay a fixed amount of returns at the time of maturity. As the policy does not involve any market-links in the processing, the policy assures to give guaranteed returns. Had this been a market-linked product or a participating insurance policy, the amount of benefit under the policy could have fluctuated. When the policy is non-participating, the insurance company is not liable to share the profits they earn in a year. They will only give loyalty additions as the insured continues to get insured with the existing life insurance settlement company.
The amount received under the policy will help to achieve the long-term financial goals. Other than the assured benefits, the policy looks lucrative as it also comes with the life cover.The insurance protects you against the eventualities and pays the nominee the sum assured as promised.
The requirement for the guaranteed savings plan has arisen due to the increase in the market volatility, uncertainty of businesses and life, and sharp boost of inflation. Considering all the factors that surround almost every individual, buying a guaranteed savings plan becomes a prime requisite.
Let us read the benefits of the guaranteed savings plan.
What are the benefits of the Guaranteed Savings Plan?
A guaranteed savings insurance policy provides you these benefits:
- Guaranteed Benefits on death.: If during the policy term, the life insured passes away, the insurance company will pay the death benefit to the nominee. The sum assured may be paid in equal instalments.
- Assured benefits on maturity of the policy: If the life insured survives the complete term, the insurance company will pay the maturity benefit.
- Guaranteed Additions: Under the guaranteed savings plan, the insurance company provides guaranteed additions that boost the corpus. At the time of maturity, the insurance company will provide the increased corpus to the insured. In the absence of the life insured, the enhanced funds will be paid to the nominee.
The additions are accrued under the policy every month up until the policy’s maturity. The benefit is added only if all the due premiums have been paid.
- Joint Life protection: A guaranteed savings plan gives you an option on joint life protection. You can get your spouse covered under the same policy. After the death of the primary insured, the benefit is paid to the secondary life insured. The sum assured for the secondary insured is lesser than the primary.
- Loan Facility: The savings policy also provides an opportunity to be used against the loan. You can deposit the savings policy against the loan you have applied for. Once all the instalments of the loans are paid, you can get the insurance policy.
- Tax Benefit: A guaranteed savings policy also provides you the benefit of tax deductions under Section 80C of Income Tax Act, 1961. All the premium paid under the guaranteed savings policy will be eligible for deduction. In a year, a total deduction up to Rs.1.5 lakhs is permitted.
Features of the best Guaranteed Savings plan from ABSLI
ABSLI Assured Savings Plan
ABSLI Assured Savings Plan provides life insurance protection with the guaranteed savings in life. The plan comes with the lump sum benefits at maturity. The maturity amount is further enhanced by loyalty additions. When the amount you are liable to receive is increased with the additions, you are more financially able for a secured future.
- The savings plan provides you loyalty additions to boost the corpus you create over the complete policy tenure.
- The policy also offers convenience to include your spouse under the same policy by choosing Joint Life Protection.
- The Assured Savings Plan comes with the comprehensive life insurance cover.
- The life insured has the option to enhance the policy by choosing rider covers under the policy. Some of the riders that can be purchased at the beginning of the policy include Accidental death benefit rider, critical illness rider, hospital care rider, surgical care rider, and waiver of premium rider. The rider covers are available at an additional cost but it increases the scope of coverage in higher capacity.
- Under the policy, the life insured gets the guaranteed maturity benefit at the end of the policy.
- The plan is available online for purchase.
The ABSLI Assured Savings Plan can be taken for a newborn who is 30 days old. If looking for a joint-life protection, the policy can be opted by the adults of 18 years minimum.
ABSLI Assured Income Plus
The ABSLI Assured Income Plus plan could be the next choice of saving when you aim to get a guaranteed return. It is not just a financial cushion for you but also an alternative stream of income. The policy comes with life protection cover as well as option of savings. Other features under the plan include:
- The policy comes with the limited premium payment term.
- The insured will get the guaranteed regular income for a period of 20,25, or 30 years which will be based on the premium payment term.
- The insurance policy also offers loyalty additions to boost the savings corpus.
- For the survival benefit under the savings plan, the insured gets the option to choose from the Income only Benefit or Income Benefit with Return of Premium (RoP) option.
A guaranteed savings plan brings financial security in life. The policy enables you to attain long-term financial goals in life with the savings fund you create. Being financially secured is a blessing if you as an individual are able to attain that.Though you need a fool-proof financial planning to start saving in life, starting with an insurance policy is a risk-free choice to make. An insurance policy for savings gives double benefit of life protection as well as opportunity of savings. It is the loyalty additions in the policy that makes it a favourable choice for you as an investor. For more information on guaranteed savings plans, you can visit the link here.
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