How To Start a Guaranteed Savings Plan Early In Your Career?

Savings Plan


As you begin your career and start earning a regular income, you will most definitely be thinking about building a financial plan to secure finances for your future. Some of the pillars of a sound financial structure involve an excellent life insurance policy and a comprehensive health insurance cover, both of which can help you and your family in unfortunate medical emergencies.

After securing the basics, your next step should be to invest your financial surplus in an excellent, guaranteed savings plan, which will allow you to accumulate funds for the long term and maturity. You can use them for your large expenses.Click here to know more about it.

Let us look at further details about guaranteed savings and how you can start one early in your career.

What is a Guaranteed Savings Plan?

A Guaranteed Savings Plan is a type of non-linked endowment plan that can be purchased to secure one’s future in the long run. The plan works in such a way that you have to pay annual premiums for the premium paying term of the policy and get a fixed Sum Assured payout at maturity.

Once the premium paying term is over, you get a guaranteed benefit added to your corpus every year for the remainder of your policy term, thus boosting your accumulated funds further. At the end of maturity, you get the promised sum assured and the guaranteed benefits as a payout.

You can then use these funds for major expenses down the road, like planning your children’s wedding, paying their education fees, buying a house, etc. Furthermore, such a policy also provides a death benefit to the nominee if the policyholder, unfortunately, passes away.

How to Start a Guaranteed Savings Plan at a Young Age?

The key to getting the most out of a guaranteed savings plan is to start as early as possible. The longer your policy term, the higher will be your maturity benefit. The best time to start a guaranteed savings plan is once you have a regular income stream and have the other basics like life insurance and health insurance covered. To purchase a policy, you can approach a bank or an NBFC or visit their websites to look for such plans. If you find one that suits you, apply directly on the website, and the process will be followed through at the other end.

Eligibility of Guaranteed Savings Plan 

– Entry Age: A minimum of 3 years and a maximum of 60 years

– Maximum Maturity Age: Minimum 18 years and maximum 75 years.

– Policy Terms: 10, 14, 15, 16, 20 years.

Note that the eligibility criteria given above may be slightly different for different vendors of guaranteed savings plans. Check your offer thoroughly before purchasing a policy.

Benefits of Guaranteed Savings Plans 

– A fixed and guaranteed sum assured will be paid at the end of maturity, and thus your investment won’t be affected by market fluctuations as it may with equity-linked investments.

– Additional loyalty and other guaranteed benefits may be added over and above the basic assured sum after the premium paying term are over for the remainder of the policy term.

– The promised death benefit would also mean your family’s finances will be secured in case of your untimely demise.

– Additional optional riders like accidental death rider, permanent disability rider, and others can also be purchased with this plan for extra protection.

Read more to know about the benefits of Guaranteed Savings Plan.

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