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3 Exceptional Scenarios When Guaranteed Savings Insurance Plan is Your Only Option

25-August-2021 |

The word “guarantee1” implies security, especially when we have important financial goals and needs that have to be met. This is one of the primary purposes for which a guaranteed1 savings plan has been designed. The aforementioned plan incorporates a sense of assurance within an investor’s mind that the savings plan in question will provide them with a fixed amount to support their financial requirements.

A guaranteed savings plan is a money saving plan that serves as a safe avenue of investment and provides guaranteed1 returns to the investor in the long term. Being life insurance products, these savings plans don’t just offer a savings fund on maturity but also provide a life cover to safeguard your family in case of emergencies.

And speaking of emergencies, there can be certain points in our lives where only a guaranteed1 savings plan can be the best financial option. To know why let us first explore what this savings plan means.

What is a Guaranteed Savings Plan?

A guaranteed1 return plan or guaranteed1 saving insurance plan splits the premium payment such that one part of the premium goes towards creating a long-term savings fund for you while the other part is used to protect your family with a life cover. One of the salient features of a guaranteed1 savings plan is that the returns are assured at the inception of the policy, thereby allowing you to plan your financial goals down to the last detail.

During the tenure of the policy, you can keep accumulating your savings and receive a monetary benefit on maturity as a regular monthly income or on an annual basis. However, if something unforeseen happens during the policy tenure and you are unable to care for your family, your dear ones are entitled to receive the death benefit from the plan so that their financial needs are taken care of. Now that you know how beneficial these savings plans are, let us see why a guaranteed1 savings plan is the right choice in some situations.

 

Circumstances Where a Guaranteed Savings Plan is the Ideal Option

Here are three unique situations wherein a guaranteed1 savings plan can prove to be the only adequate option for you.

  1. During your maternity leave

    The birth of a child is a joyous moment and the subsequent maternity leave is when you get to spend plenty of time with your newborn. This is also the time when financial tensions should be the least of your concerns. However, during this period, the expenses of caring for your child can be quite high. Think vaccines, baby care products, and a 24-hour house help! A well-thought-out savings plan can come to your rescue and help you manage the increased burden on your finances.

    Whether you are on a paid or unpaid maternity leave, having a guaranteed1 savings insurance plan during the period can provide significant financial relief. Even if you are on a paid leave for a few months, a guaranteed1savings insurance plan not only provides an extra source of income for yourself and your baby but can also replace the lost income if you choose to extend the sabbatical!

    By planning well in advance, a single pay premium payment plan can give you access to the desired corpus during and after your childbirth.

    Keeping this in mind, the Tata AIA premium payment offers you the convenience of choice in premium payment terms as well as the premium payment mode. You can choose a regular income plan so that your monthly expenses are well looked after.

    Moreover, the insurance coverage provided by our savings plan can help you financially secure yourself and your family members.

  2.  

  3. While setting up a new business

    A 9-5 job, no matter how secure, is not everyone’s cup of tea. Sometimes, even a steady salary fails to remain an incentive to keep you going and starting a new business takes more than just an idea or an inspiration. But if you are already convinced about what you want from your business, it is now time to get started! While all your safety deposits and savings accounts may be of great help at this point in time, what you need is a long-term savings insurance plan.

    While you are starting your new business, you need to be sure that your other essential expenses are also taken care of. Most of your savings will be taken up by the resources needed to kick-start your project. At the same time, there are also other risks that come with starting a new venture. The long hours at work, the endless hustle, etc., can take a toll on your health.

    A guaranteed1 savings insurance plan can provide you with a steady stream of income along with insurance coverage for you and your family members so that they can be financially protected in case of any eventualities. By choosing either a regular income plan or a regular income plan that also offers a critical illness cover, you can avail of 360-degree protection while you work on building your brand, free from all worries.

  4. Setting up an educational fund for your grandchildren

    Chocolates, clothes, and a few currency notes given to your grandchildren can make for great gifts at festivals and other family functions but if the idea of planning something bigger for them comes to your mind, you need an appropriate savings plan to set you on the right track. While gifts are wonderful for making sweet memories, supporting your grandchildren in their academic endeavours can be much more fulfilling!

    A guaranteed1 savings insurance plan is an ideal way to give something permanent and fruitful to your beloved grandchildren. In today’s world, everyone’s educational needs are varied and can be customised to help them fulfil their ambitions. As a grandparent who knows how their grandchild feels about their academic aspirations, planning an educational fund for them reflects your genuine love and concern for their success. A long-term savings insurance plan also ensures that they never have to give up on their choice of degrees, diplomas, and courses only because of financial constraints.

    You can choose from different premium payment options to start a savings corpus for your grandchildren and choose either a lump sum payout or a regular income plan so that your grandkids can choose how they want to pursue their educational aspirations. Additionally, but more importantly, the insurance cover associated with such a savings plan also protects your dear grandchildren from the financial implications of any unforeseen contingencies that may occur during their educational journey.

 
How to Understand the Maturity Value of a Guaranteed Savings Insurance Plan?

Before buying a guaranteed1 saving insurance plan, it is necessary to understand its maturity value so that you can chalk out an accurate financial plan for the future. The guaranteed1 maturity benefit is the sum of the sum assured and the bonus2 amount gathered throughout the policy term in addition to an additional bonus2 that may be declared by the selected insurance company. However, if the policyholder does not survive the policy term, then the sum assured is paid out to their nominee in the form of a death benefit.

You can use the Tata AIA savings plan calculator available on our website to determine the amount you need to invest for the financial goals of your choice.

 

Conclusion

It is important to remember that a suitable guaranteed1 insurance plan is one that helps you plan for and meet all your financial goals. Depending on what your goals are and which stage of your life you intend to save for, a guaranteed1 savings insurance plan, as seen in the above scenarios, can provide much-needed financial support to you as well as your family.


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Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

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Disclaimers
  • Insurance cover is available under the product.

  • The products are underwritten by Tata AIA Life Insurance Company Ltd.

  • The plans are not guaranteed issuance plans, and they will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.

  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.

  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.

  • 1Guaranteed Returns/Payouts depend on Plan Option, Policy Term, Premium Payment Term and Age at entry

  • 2These bonuses are not guaranteed in nature. The Company may declare a Cash Bonus rate annually in advance. The Cash Bonuses if declared will be applicable provided all due premiums have been paid.