8 Reasons To Buy A Guaranteed Savings Plan

You design a short- and long-term financial plan based on your goals. Long-term plans establish the groundwork for your future financial security, and short-term plans strive to meet more pressing economic needs of the present.

Additionally, it is your long-term plan that aids in the achievement of your desired financial objectives in life. Usually, a long-term financial plan helps you stay on track and, in the end, achieve your goals by matching your financial capacity with your long-term objectives.

What Is A Guaranteed^# Savings Plan?

A guaranteed# savings plan is often a non-participating insurance policy that offers you a secure insurance cover against unforeseen events and creates an ensured return on your savings to assist you in reaching your long-term life goals. This plan, with guaranteed^# returns, lets you set up recurring payments in the form of monthly or yearly income for a set period.

In India, endowment insurance plans are otherwise known as Guaranteed Savings Plans as the maturity benefit is guaranteed# at the policy's inception. The only element which is not guaranteed# is the bonus portion for participating endowment plans.

Different companies have different guaranteed# savings plan policies in place. It is, therefore, best to thoroughly research all policy documentation before investing.

Why Should You Get A Guaranteed Savings Plan?

From a child's academic obligations to building a house and setting up the children's marriages, the responsibilities never end. The to-do list is endless, and despite our best efforts to provide our kids with the finest possible experiences in life, you frequently overlook your needs and desires. By purchasing a retirement plan, you can easily save for the dream retirement home you have always wanted to buy.

In addition to helping you with your long-term financial planning objectives, the plan has adjustable elements that make it better suited to your needs. You can decide how much money to put down, for how long, how long to pay the premiums, and how long to use the income benefits. Overall, both the achievement of your long-term goals and your returns are guaranteed#. So, technically, if you are looking for a fixed-return investment opportunity, a Guaranteed# Savings Plan is a great option.

What Is The Importance Of Guaranteed Savings Plans?

With a Guaranteed^# Savings Plan, you will be able to fulfil your goals:

Debt Allocation In Your Portfolio:

Guaranteed^# Savings Plan is a traditional investment plan with no exposure to the market. Hence, this investment would be considered a debt allocation to your overall investment portfolio.

Fulfil Financial Goals:

Since Guaranteed# Savings Plans have fixed returns at a pre-defined time, the cash flow can be planned and can help you fulfil specific financial goals.

Guaranteed Returns:

Since Guaranteed Savings Plans offer guaranteed# returns, it adds an element of certainty to your life, which provides you with life coverage along with fixed returns. Additionally, it is advised to begin retirement investing at an earlier age. The insurance plan minimises costs while averaging the overall effects of market volatility.

The Top 8 Reasons To Buy A Guaranteed Savings Plan:

The following eight reasons support purchasing the ultimate guaranteed# savings plan:

Guaranteed Maturity Benefit:

The guaranteed^# lump sum payment made after the policy period is known as the Guaranteed Maturity Benefit. At the start of the policy, you can determine the assured maturity benefit based on your policy term, age, gender, premium, and payment term. The guaranteed# maturity benefit could be less than the death benefit.

When the saving plan's period is up, you can choose the premium amount and get the maturity benefit. The capital is protected against market performance by the minimum maturity value.

Life Coverage:

Along with returns, a Guaranteed# Savings Plan also provides you with life coverage. This is a dual benefit of a Guaranteed# Savings Plan.

Guaranteed Cash Flow:

Since the Guaranteed# Savings Plan have pre-scheduled guaranteed maturity benefits, there is a certainty in the cash flow.

Better Growth For Long-term Investors:

Over time, the longer duration will result in a bigger bonus. The rewards and advantages increase the longer you keep your investment. To accomplish all of your long-term financial goals, pick a good participating Guaranteed# Savings Plan.

Collateral For A Loan:

The insurance policy increases its cash worth after two years and continues to do so over time. You can therefore obtain loans against the procedure in the event of an urgent necessity by using it as collateral for a loan.

Guaranteed Yearly Additions:

These yearly additions assist in their improved investment growth, which results in more significant savings. Guaranteed# additions are extra perks you will receive when your insurance reaches maturity.

Enhanced Benefits With Riders:

The benefits of a Guaranteed^# Savings Plan can be enhanced with the additional benefits that can be added, such as: a. ABSLI Accidental death benefit rider (UIN: 109B023V02) b. ABSLI Critical illness rider (UIN: 109B019V03) c. ABSLI Surgical care rider (UIN: 109B015V03) d. ABSLI Hospital care rider and (UIN: 109B016V03) e. ABSLI Waiver of premium rider (UIN: 109B017V03)

Tax Benefits²:

It assists you in saving the invested sum in a savings plan under Income Tax Act Section 80C. According to Section 80C, you may deduct the plan premiums you pay up to INR 1.5 lakhs. If you choose riders for your insurance, you may be eligible for Section 80D deductions of up to INR 50,000.

According to Section 10, the entire maturity amount is considered tax-free income² (10D), provided the sum assured is at least 10 times the annualised premium. Additionally, the death benefit received is tax-free².

The premium for your Guaranteed Savings Plan would be determined by several factors such as your age; the sum assured chosen, policy tenure, etc.

In addition to these benefits, some organisations provide hassle-free and quick claim settlement. Your claims are handled at your doorway, and they are all resolved in about four hours. When you purchase an assured savings insurance plan, you make a wise financial choice to assist your long-term financial planning needs by providing guaranteed# returns and a life cover.

Which Guaranteed Savings Plan To Opt For And Why?

Multiple plans are available in the market, each with its unique benefit. However, you need to choose the plan which best suits your needs. Here is the list of the plans available with us and their key features for you to quickly understand their benefits and choose accordingly:

• ABSLI Fixed Maturity Plan (UIN: 109N135V04), a single premium endowment plan with a guaranteed# maturity amount along with life coverage and tax benefits.
• ABSLI Assured Savings Plan (UIN: 109N134V07), which provides guaranteed returns along with loyalty additions and comprehensive life insurance coverage for self and spouse in the same plan.
• ABSLI Assured Income Plus plan (UIN: 109N127V011), which is a short-term endowment plan with long-term income benefits as well as guaranteed lump-sum maturity benefits with loyalty additions.
• ABSLI Vision LifeIncome Plus Plan ( UIN: 109N131V01), which is a whole life plan with comprehensive cover along with guaranteed regular income with bonus payouts.
• ABSLI Secure Plus Plan ( UIN: 109N102V08), which provides guaranteed# income benefits along with loyalty additions.
• ABSLI Vision LifeIncome Plan (UIN: 109N079V06), which is a whole life savings plan with income benefits as well as a lump-sum payout.
• ABSLI Vision Endowment Plus Plan (UIN: 109N092V05), which is a traditional endowment plan with participating bonus opportunities.
• ABSLI Income Assured Plan (UIN: 109N089V06), which is a guaranteed savings plan with guaranteed additions wherein there is an option for a short premium paying tenure and also receiving monthly payout benefit.
• ABSLI Jeevan Bachat Plan (UIN: 109N107V03), which is an over-the-counter guaranteed# returns plan with no medical test and guaranteed additions on maturity and accidental death benefit option.
• ABSLI Monthly Income Plan (UIN: 109N122V02), which is a monthly income benefit plan with a bonus option.
• ABSLI Savings Plan (UIN: 109N088V02), which is a flexible endowment plan with the flexibility to choose policy and premium paying tenure along with guaranteed additions as well as regular bonuses.
• ABSLI Vision LifeSecure Plan (UIN: 109N087V04), which is a whole-life comprehensive plan with long-term security and a regular bonus option.
• ABSLI Vision MoneyBack Plus Plan (UIN: 109N093V04), which is an anticipated endowment plan with guaranteed# survival benefits and regular and customised payout options.
• ABSLI Guaranteed Milestone Plan (UIN: 109N106V11), which is a joint-life endowment plan with guaranteed# additions.

Conclusion

A guaranteed return plan provides the resources you need to accomplish your long-term objectives while protecting your family from many uncertainties. Choosing the appropriate savings plan for your long-term needs is a wise move for the upcoming years. The time to decide is right now.

Reference https://www.cnbctv18.com/personal-finance/5-reasons-guaranteed-insurance-plans-make-for-an-attractive-savings-proposition-9463671.htm⁴
https://lifeinsurance.adityabirlacapital.com/endowment-plan⁵