3 Tips to Buy Guaranteed Savings Plan

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3 Tips to Buy Guaranteed Savings Plan

3 Tips to Buy Guaranteed Savings Plan
  • 27th Apr 2022 |
  • 2,918

The ultimate purpose of investing in life insurance is to ensure that our families live a worry-free and financially stable future in case of our absence. Guaranteed savings plans offer a stable financial structure that allows you to save money consistently. This helps you make sure that you have built decent monetary resources to support your family’s future. You know that term insurance is popular due to features like tax savings. However, guaranteed savings plans are a more reliable and flexible financial product that will help you save money while ensuring a guaranteed return.

In the case of the guaranteed savings plan, you continue to get the benefits even if you outlive your plan’s tenure. This makes it the most viable and safer option compared to other insurance policies in the market that come with some of the other risk factors involved.

This article will discuss the three tips to buy a guaranteed savings plan that will help you understand the key features of a guaranteed savings plan that you should look for before investing in them. However, before discussing the tips for a guaranteed savings plan, let’s briefly understand what guaranteed savings plans are.

What are Guaranteed Savings Plans?

A life insurance policy that promises a guaranteed return is also known as a guaranteed endowment plan and a guaranteed return plan. With these policies, you get systematic savings and decent returns and life insurance benefits. In addition to this, the guaranteed savings plan also offers you the flexibility to choose the policy duration and the amount of premium that fits your financial requirement. At the end of your policy, the money is paid out as a lump sum amount or through a regular instalment over a specific period. Many people consider these plans the best investment option for retirement.

3 Tips To Buy Guaranteed Savings Plan

3 Tips to Buy Guaranteed Savings Plan

Planning to buy a saving plan? Here are a few tips for guaranteed savings plans that you must consider before investing in them

1. Define your long-term goal and choose a flexible policy.

The long-term investment in any policy depends on the objective of investment. And it is this future objective that will help in choosing the best-guaranteed saving plan for you. Additionally, this will also help you determine the policy tenure and the premium amount.

Moreover, selecting a savings plan is easier once you have your financial goals defined. However, choosing a flexible plan that can adapt to your income and budget-related constraints is always advised. So, choose a plan that allows you to pay your premiums as per your choice, either in lump sum amounts or in instalments.

2. Avail riders and loan facilities.

This is one of the critical tips for guaranteed savings plans. Experts suggest that while opting for a savings scheme, you should also choose the one that offers a variety of riders fitting your need and at the same time also offers you a loan facility to meet any emergency need. So, it’s best to pick a guaranteed savings plan that offers you a loan against your investment and deducts it when the policy matures.

3. Choose your insurance provider prudently

You must have often seen that people go for options that offer marginally better returns than some of the well-established insurance companies. You need to understand that having good insurance and an established insurance service provider is important because it helps you in different operational and transactional processes. Also, if you invest in a well-established insurance company, you don’t have to worry about the safety of your capital amount.

These are the 3 tips to buy a guaranteed savings plan to help you choose the right policy for your financial goals.

Kotak e-Invest

In this policy, the investment risk in the investment portfolio is borne by the policyholder.


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


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