What are the best Features of Kotak Guaranteed Savings Plan?

A guaranteed savings plan is one of the most popular life insurance and savings plans. Under this plan, you can get a host of lucrative advantages. For instance, you can include a Guaranteed Savings Plan in your portfolio if you are planning to save up on taxes. With that being said, here are some of the best features of the guaranteed savings plan. Let’s get started!

The availability of maturity benefits

When you invest in Kotak Guaranteed Savings Plan, you are entitled to receive maturity benefits after the term of the policy ends. Now, you can decide on the time period of the policy. After the term ends, you will get maturity benefits, along with loyalty and interest rate additions.

Discontinuing the policy before term

If you have chosen to invest in Kotak Guaranteed Savings Plan and want to discontinue the policy before the end of the term, then you are permitted to do that. The amount you will get as a result will be equal to the savings plan’s surrender value. But you will only get this amount if the policy has been continued for three years.

The policy revival clause

You can revive a guaranteed savings plan after you discontinued it for some reason. However, the terms of reviving the policy vary from one insurance company to another. In general, you can revive the policy in case you have not discontinued the policy for over three years. Talk to your insurance company to know the exact guidelines for policy revival.

The missed premium guidelines

Typically, insurers levy a charge if you miss premium payments beyond a certain time. However, in case of a guaranteed savings plan, you need to continue paying the premium for at least three years. After that, you can stop paying the premium for any reason. In that case, the insurer considers that the policy is paid fully. You will get the final amount, along with the added interest, according to the premiums you paid for the three years.

The tax benefits of the plan

As per Section 80C of the Income Tax Act, 1961, the premiums that are paid for a Guaranteed Savings Plan get tax exemption up to ₹1.5 lakh. The death benefits and maturity benefits under this plan also get tax deductions under Section 10 (10D). Thus, many people also opt for this plan simply because of the associated tax benefits.

The death benefits of the plan

In case of the untimely demise of the policyholder, the beneficiary of the policy is entitled to receive death benefits. The beneficiary is offered death benefits as per the sum assured under the policy and the premiums paid for it.

The bottom line

If all the features mentioned above sound lucrative to you, then it is time to get a guaranteed savings plan. Get in touch with your insurance company and sort out the finer details of your chosen savings plan.

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