Guaranteed Plan | Life Insurance | Apply online | Dialabank
Guaranteed Savings Insurance Plan is a type of insurance policy. This is an endowment life insurance plan, and it gives a life insurance cover with a certain amount at the maturity of the plan. It offers limited paying options.
This life insurance plan falls under Section 80C tax saving schemes. This means the premium payable will be applicable for deduction from the taxable salary under section 80C. If the policy holder dies, the nominee will get the premium amount. It is a non unit-linked insurance plan.
What to make out of this plan?
Let’s see a person chooses the 15-year term policy and decides on a premium of Rs. 10,000.
The first thing to keep in mind is that the person has to pay premiums for the first 7 years, but gets the money at the time of maturity i.e. at the end of the 15th year. The good part is that the insurance cover lasts for 15 years as well.
How much will be the insurance cover?
Annual Premium x Number of Premiums= Insurance Cover
That will be
20,000 X 7 = Rs. 140,000.
The cover of as much as Rs. 50 lakhs is given to a person with an annual premium of Rs. 5,000. This is an added benefit.
- Premium Payment: This is simply the sum of premiums that a person has paid, so one’s own cash and this forms part of the guaranteed payment.
- Regular Additions: Every year, they declare a certain percentage of the sum assured that will be added to how much a person receives back from them. The additions are generally around 4%, so in the given case 4% of Rs. 1,40,000 or Rs. 5600 will be added to what a person gets at the maturity. This will be added throughout the term of the policy, so in this case – 5,600 x 15 = Rs. 84,000. This is also part of what they consider the guaranteed payment. So, the guaranteed total is Rs. 1,40,000 + Rs. 84,000 viz. Rs. 2,24,000.
- Maturity Benefit: They also give a maturity benefit, but this is not guaranteed.
- If something happens to the policy holder, the nominee will get a lump sum amount at 5% per annum
- The GSIP doesn’t require any medical tests