Life is all about fulfilling the seemingly never-ending responsibilities – from completing your children’s education to building your home – the list can go on! But in a bid to meet the responsibilities, you can’t forget your requirements and needs.
This is where a Guaranteed Savings Plan comes into the picture. After all, even you would want to have a relaxed retirement, right? So, here are the reasons why a Guaranteed Savings Plan is a great idea.
Assured maturity benefits
Choose the premium sum for the Guaranteed Savings Plan, and you will get the maturity benefit after the duration of the savings plan is complete. There is a minimum maturity value to save the capital from market performance.
Assured annual additions
The yearly additions let the plans have better investment growth, which means a higher sum is saved in the process.
Availability of loans against the plan’s cash value
After a particular time, the policy gets cash value that steadily increases in time. Thus, when there is an immediate need, you are able to take loans against a Guaranteed Savings Plan.
Feasibility of the plan
Most of you will find it easier to save a smaller amount each month instead of giving away a major sum at the end of the year. Typically, some expenditure piles up, and the focus goes to handling the newer expenses instead of achieving the goals.
The life coverage feature
A savings plan can be used to cover the family finances. Thus, you can be assured that your near and dear ones will be financially protected in the unfortunate event of a mishap.
The flexibility factor
A savings plan is easy to alter depending on the long- and short-term goal and the insured premium.
The tax benefits of the plan
When you invest an amount in a Guaranteed Savings Plan, you can get income tax benefits under Section 80C of the Income Tax Act.
Growth opportunities for a long-term investor
A longer duration means that the investor is going to get a higher bonus on a long-term basis. Thus, the more an investor remains invested, the higher are his/her benefits and returns. In fact, investors just need to select the right Guaranteed Savings Plan for retirement, and they can achieve all the milestones of their long-term financial aims.
Choosing a Guaranteed Savings Plan for your needs
You can customize your policies as per your requirements and goals, but you need to choose the perfect plan for that purpose. For instance, if you want life coverage within policy terms and a lump sum amount right after maturity, then a Guaranteed Savings Plan is good.
But if you are worried about your children’s future, then an additional ‘premium protection’ is necessary. Similarly, you will have to select a premium amount that you are comfortable with.
If you choose the right Guaranteed Savings Plan with the right amount, then you can be assured of reaping the benefits. So, go ahead and start looking at your options.