When it comes to investing, the term ‘guaranteed’ sounds very comforting. It implies security, which is vital in achieving your financial goals. There are a few investment instruments like the guaranteed savings plan, which offers assured returns. It is a popular investment choice among investors, especially those who have a reasonably low-risk appetite.
A guaranteed savings plan offers life insurance protection and gives you a chance to save for your long-term goals and get assured returns upon maturity. So, if something happens to you during the policy term, you can be assured that your family receives the death benefit and never faces any financial hassles.
At the same time, you may have long-term goals, like building a retirement home, buying a new house to settle with your spouse during the post-retirement life, leaving an inheritance for the grandchildren, etc. Whatever be your goals, you can accomplish them with the guaranteed savings plan.
Let us look at three scenarios when a guaranteed savings plan could be an ideal investment option.
When you want to start a new business
A typical day job is not everyone’s cup of tea. No matter how secure your job is and you earn a decent income, you may feel the urge to start your venture and give wings to your ideas and aspirations.
However, you must know that starting a business and leaving your job may be a risk. You may have the necessary capital to kickstart the project, but you may also need a regular income source to take care of your family’s everyday needs.
This is where a guaranteed savings plan can be helpful. It will help you and your family get a steady income to cover your regular expenses. All this while getting the assurance of life insurance protection. You can breathe easy knowing that your family is financially secure, and you would have one less thing to worry about, and you can focus better on your business.
Setting up a corpus for the grandchildren
As a responsible family man, you may want to leave a good legacy for your future generation. You may buy all the best things for your kids and grandkids, but how about planning something bigger and better for them, like building a corpus for their future needs.
Many secured investment options like fixed deposits, public provident funds, and national savings certificates allow you to save for long-term goals. They may also offer valuable returns. But a guaranteed savings plan is still a better choice as it offers good returns with compounding effects and at the same time gives you insurance protection.
So, whether you want to build a corpus for your grandchildren’s education needs or marriage, you can start saving throughout your working years without feeling the burden.
During maternity
The birth of a child is a landmark occasion in life, and the joy you feel is unmatched. However, you may also worry about the various childcare expenses during this period, such as vaccines, baby care products, house help, etc. And, whether you get a fully paid or unpaid maternity leave, you must have a meticulous plan to manage the increased expenses.
If you have guaranteed savings in your portfolio, you can get massive financial relief. Even if you extend the leave for a few months, it may make up for the loss of income.
Final Word
Investing in a guaranteed savings plan helps you keep moving forward towards accomplishing your long-term goals. Many insurance companies offer these plans, make sure to do your research well, compare the plans and choose the one that best suits your needs and goals.
