What's A Guaranteed Income Plan, And How Should You Choose One?

A guaranteed savings plan is an investment plan that is a non-participating monthly scheme. While you are present as a policyholder during the tenure period, you can pay annual premiums for flexibility. The insurance provider may decide upon your duration as per your age and existing financial position. 

With a monthly savings plan at hand, you can secure your post-retirement life at once. It can also help you to secure your family’s financial interest for utmost convenience. It is best to buy the policy after you have considered it thoroughly. 

This blog will help you understand the different features you can expect in this plan. So, keep reading below for more relevant information. Stay tuned with us!

Death Benefit 

In a guaranteed savings plan, if the policyholder dies during the tenure period, their nominee will receive the sum insured on time. But they have to keep in mind that the policy is not mature. If it is ongoing, it will do. This is especially beneficial for those nominees who were utterly dependent on the policyholder for financial assistance. So, even when the policyholder is no more, the nominee can continue to receive financial aid without any stoppage. The sum insured here is even higher when compared to the traditional life insurance plans. So, you may want to consider that. 

Loans 

People who buy the monthly savings plan can also receive loans when in need. You can get the loan facility if the policy obtains a surrender value. The loan value that you can avail in the bank may differ from one bank to another. So, you have to run comprehensive research to compare which one is most suitable for you. However, the minimum loan value starts at Rs20,000. So, it may go up to a lot more. Make sure you consult your insurance provider if you need this help immediately. 

Grace Period 

Many banks offer a 30-day grace period in this guaranteed savings plan. This means that you can pay the premium for the plan in nearly 30 days for annual, monthly, or quarterly policy. The best part is that you will not receive any fine or deduction from the bank during this period. So, if you think you will need it, you can scout for this plan without a second thought. But if you want to know more about it, you can speak to your insurance provider and understand the policy for this period properly. 

Missed Premiums 

Take an instance- you stop paying the premium after three years of the policy period. During such a case, the monthly savings plan will be regarded as paid from your end. Therefore, the final sum and interest rate will be estimated according to your paid premiums before you stopped paying them. 

The Bottom Line 

A guaranteed savings plan can come in handy when you do not know how to earn sufficient income during your retirement life. So, consult your insurance provider today and discuss the policy buying experience. We promise; you won’t be disappointed. 

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