Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

A Guaranteed Savings Plan or GSP is a non-participating policy that helps individuals achieve their long-term goals by offering an assured return on their savings.

  • Jun 20, 2022

Retirement planning is one of the most important things that we do as younger versions of ourselves. One retires from work, not life. Our goal is to achieve financial security and stability during our work-life’s peak days of activity. Retirement is about living your life with dignity and having enough monthly income to maintain a smooth lifestyle easily.

Why Should You Consider Guaranteed Savings Plan for Long Term Investmen

Importance of Retirement Planning

Financial independence

Old-aged people often feel like a burden on their families due to financial dependence. Financial independence ensures higher self-worth and better interpersonal relations.

Medical emergencies

Healthcare expenses are non-negotiable, unlike other financial goals. Since inflation in the healthcare sector is growing at an alarming rate, it is crucial to plan for unexpected emergencies.

Better health

Financial stress is responsible for many diseases such as diabetes, heart disease, migraine headaches, anxiety, depression, insomnia, etc. If you have planned your post-retirement life already and secured your finances, it will protect you from stress, hence contributing to better health.

Fulfill your post-retirement goals

With the right retirement plan, you can achieve all your goals, including traveling, children’s higher education, marriage, etc.

Fight inflation

Holding money in a bank account is insufficient to fight inflation today. Therefore, assured return investment plans help you generate significant returns to meet your expenses.

Also, it is suggested to start investing for retirement at a younger age. This is cost-effective and averages out the overall impact of the market volatility.

Savings Plan - Overview

There are many plans in the market for retirement savings; however, the goal of most individuals is to save maximum for their retirement years. Also, since it’s about retirement, dependency on high-risk investments is hardly a choice.

Guaranteed Savings Plans are the best life insurance plans with guaranteed returns for those looking for a retirement policy. In addition, the features of the Guaranteed Savings Plan make it an excellent long-term investment option, alongside making it quite popular among people looking for such investment.

The best Guaranteed savings plans or GSP available in the market can also serve as the best long-term savings tool. Investment in this guaranteed return investment plan can be planned for meeting retirement expenses in addition to the basic pension. You can also plan it to support the cost of higher education or as a personal investment for other futuristic purposes.

Let’s understand what a Guaranteed Savings Plan is and why are GSPs considered good for long-term investment. Let us first understand what GSP is and then maybe move on.

What is Guaranteed Savings Plan?

A Guaranteed Savings Plan or GSP is a non-participating policy that helps individuals achieve their long-term goals by offering an assured return on their savings coupled with a secured insurance cover against uncertainties of life. These plans offer life insurance with guaranteed returns and are traditional. They do not involve the policyholder directly in investment activities like ULIPs.

You are eligible for a lump sum amount or a regular payment as a monthly or annual income over a given time at the time of maturity and other benefits. These are guaranteed payments that the insurer has to pay you.

In addition to this, they serve as tax saver plans. The premiums paid up to ₹1.5 lacs per annum are exempt under Section 80C of the IT Act, 1961.

Hence, the policyholder can avail themselves of the tax benefits as per current income tax laws prevailing in India.

Once the plan matures, the policyholder receives the final amount. The total amount is the sum of all the premiums along with interest. In case of the policyholder’s unfortunate demise, the beneficiary gets the death benefit.

Furthermore, the interest paid here is much higher than the conventional types of life insurance. (Note: The policy should be ongoing and not matured.) The terms and conditions for a savings plan might vary according to the bank or service provider. The minimum age limit is from 0 to 60, while the maximum age ranges from 18 to 75 years.

However, it is important to read all the policy-related documents before opting for life insurance plans with guaranteed returns like the GSP.

Documents required to apply for a Guaranteed Savings Plan

  • Application form
  • Proof of identity
  • Proof of address
  • Salary and occupation proof
  • KYC documents
  • Medical documents are required sometimes to show a detailed medical history.

Why are GSPs Considered Good for Long-Term Investment?

When you talk about Guaranteed Savings Plan, it’s understood that it is an endowment plan with guaranteed returns. Now, why should you consider guaranteed savings plan a good option for long-term investment?

This is the best-guaranteed return plan as the total amount you receive is higher than other types of life insurance.

Total Maturity Benefits = Basic Sum Assured (BSA) + Guaranteed Addition (GA) + loyalty addition (LA)

A very straightforward answer is that the longer you stay invested in GSP, the better returns you get. If you look at the policy terms and guidelines of most of the insurance providers, you get the option to opt for a policy term of 14,15,16, or 20 years, with different premium payment terms. You need to specify the time duration of maturity for the savings plan before signing up.

You can choose to pay the premiums according to your preferences. You can pay a lump sum in a single shot to avoid the hassle or pay the premiums at regular intervals.

Now, if you do the math on all of these policy terms and the time you have invested in GSPs, you will get enough idea of the long-term benefits of GSP compared to a shorter tenure. This makes it one of the best investments for people planning to invest for long-term financial goals like retirement. GSPs help you leap ahead in your financial capabilities and fulfill your future milestones. So choose the best investment plan with guaranteed returns and secure your post-retirement life.

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

Kotak e-Invest

Download Brochure


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

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


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Why Should You Invest in Term Insurance And ULIP?

Best Investment Options in India in 2022

How to Increase Net Worth Along with Family Protection

Do You Know the Difference Between Savings and Investment?

How Does an Endowment Plan Work?

What are the Best Short-Term Investment Plans with High Returns?

How to Start Saving Money in 10 Simple Ways?

Best One-Time Investment Plans in India

Customising investments to manage your wealth

What's Better for Your Child's Education? Child Plans or Mutual Funds?

Planning for Your Child's Higher Education? Explore These Investment Options

How to Manage Inheritance Money?

8 Important Tips to Maximize Gains with ULIP Investments

Best Investment Plans for Children - Secure Your Child's Future

How Do One-Time Investment Plans Work?

Investments Options to Buy a house in India

What is better - Guaranteed Savings Plan or Fixed Deposit?

Can ULIP Policy be Transferred?

How Is ULIP Different from Other Life Insurance Plans? Where Can I Invest - ELSS, ULIP, or PPF?

Best Investment Options to Cover Your Child's Education

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

Important Questions You Must Ask Yourself When Buying a ULIP Plan

Safe Investment Options with High Returns for FY 2018-19

What are the Best Investment Options for Students in India?

How to Cancel ULIP Policy?

Learn About Safe Investments with High Returns in India

Rate of Interest on Different Investment Plans in India

Top 5 Principles That Need to be Followed for Wealth Creation

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Factors Affecting Stock Markets

Savings Plan for Grandchildren

Successful Financial Planning for Urban Women

Receiving regular payouts at various stages of life

How to Plan Savings from Salary?

Creating a second source of income with life insurance

Benefits of ULIP as a Child Insurance Plan

How Much Wealth Can You Create from ULIP in 10 years?

Importance of Portfolio Management

What are the Best Investment Options for Young Adults?

What is Direct Investment and its Types?

Are Investment Returns Guaranteed in a ULIP?

How to Choose the Best ULIP Plans to Invest in 2022?

What are Tax-Deferred Savings Plans?

What is Money Management? Definition & Example

Top 10 Investment Strategies to Create Wealth

ULIPs Investment – A Boon or Bane?

Which is a Better Investment - Mutual Funds Or ULIP?

ULIP NAV Meaning & How is the Return Calculated in ULIP

How To Diversify Portfolio In 2022?

Why are ULIPs One of the Best Tax Saving Instruments?

Difference Between Passive and Active Investing

Short Term and Long Term ULIP Plans for Wealth Creation

ULIP vs FD - Which is Better and Why?

Here's Why it's a Good Time to Explore ULIPs as an Investment

ULIP Benefits You Can Avail from Early Investing

What is the Importance of Saving Money?

Why Should I Invest in ULIP?

ULIP Plan as a Gift

What are the Best Investment Options For Females?

How To Track ULIP Performance?

The lesser-known facts about ULIP policy that customers should be aware of?

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

What are Some of the Safest Investment Options in India?

What is ULIP Renewal?

What are Financial Assets & their types?

What is the Time Value of Money (TVM)?

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

4 Benefits of ULIP Fund-Switching Feature

Can ULIP Help in Achieving Short-Term Financial Goals?

Why Should Parents Invest in Endowment Plan?

How is the Compound Annual Growth Rate (CAGR) Calculated in ULIP?

ULIP as an Investment for Your Child

Asset Allocations in ULIP - Know the Top Benefits

Why Do You Need A ULIP Plan - All You Need To Know

Why Should You Build an Emergency Fund?

What is a Savings Plan and What are is Benefits?

How to Manage Your Portfolio Like a Professional?

What are Mutual Funds?

How to Use Recurring Investment Strategies to Build Wealth?

Planning Financial Goals and Objectives of Financial Planning

Things to Know Before Buying an Endowment Plan

Long Term Savings Plan - Best Savings Investment Plans in India

Is This The Right Time To Invest In ULIP? Why or Why Not?

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

Learn About Safe Investments with High Returns in India

How to Fulfil Your Financial Goals in the Next 10 Years?

Which is Better – FD, Mutual Fund, SIP, or ULIP?

How to Plan Your Child's Education - A Step-by-Step Guide

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Endowment Plan vs Fixed Deposit?

What are the Best Investment Options for Beginners or Amateur Investors in India?

Early Investing and the Power of Compounding

Investment Options for NRIs in India

Are Gains from ULIP Sale Taxable?

Does Rupee Cost Averaging Work In Unit-Linked Insurance Plans?

How To Invest Money In ULIP?

How to Plan your Investment to Achieve Periodic Financial Goals?

Why ULIP is Better Investment for Long-Term Wealth Creation?

Top 9 Investment Plans Available in India

यूलिप के फायदे (Benefits of ULIP in Hindi)

Building wealth through regular investing

Best Guaranteed Returns Investment Options to Meet your Financial Goals

Are Money Back Policies Helpful? A Complete Guide

Different Types of Endowment Plans

Which are the Best ULIP Plans in India for Children?

Difference Between Guaranteed Savings Plan and ULIP

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

Top 5 Investment Options in 2022 for Healthy Returns

Why Are ULIPs Called Flexible Investments?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

How to Make Your Financial Portfolio?

What are loyalty additions, and how do they work in a ULIP?