Aditya Birla Guaranteed Savings Plan

What is a Guaranteed Savings Plan?

A Guaranteed Savings Plan is a non-linked, non-participating investment plan that helps individuals save and grow their money over a specific period. The assured is eligible for a guaranteed lump sum settlement at death or maturity. 

In a Guaranteed Savings Plan, the investor deposits a certain amount of money regularly or in a lump sum, and the plan guarantees a fixed rate of return on the investment. The feature that sets it apart from other investment options is the assurance of a guaranteed return, regardless of market fluctuations or economic conditions.

Since it is a non-linked plan, the returns are not tied to the performance of the financial markets. This means that the plan's returns are not influenced by factors like stock market or interest rate changes. Due to its non-participating nature, the plan does not offer any additional bonuses or profits beyond the guaranteed rate of return.

This simplicity and predictability make it an attractive choice for individuals who prioritize capital preservation and want a reliable financial instrument without exposure to market risks.

What are the Benefits of Guaranteed Savings Plans? 

Here are some of the key benefits of the Aditya Birla Guaranteed Savings Plans:

• Flexible Premium Payments: Policyholders have the option to make partial or complete premium payments, allowing them to tailor the plan according to their financial capabilities and convenience.

• Customizable Time Horizon: Individuals can choose the duration of their savings plan based on their financial goals. If they need money in the near future, they can set a shorter time limit. Alternatively, for long-term savings objectives, they can extend the duration of the plan.

• Guaranteed Maturity Benefits: When the Aditya Birla Guaranteed Savings Plan reaches maturity, the policyholder will receive a sum that matches the guaranteed amount established at the beginning of the policy.

• Death Benefits: In the unfortunate event of the policyholder's untimely death, the designated beneficiary or nominee will receive the guaranteed amount, ensuring financial security for the family or dependents.

• Free-Look Period: To ensure customer satisfaction, a free-look period is provided. During this period, ranging from 15 to 30 days from the policy's start date, the policyholder can review the terms and conditions of the savings plan. If they are dissatisfied, they can choose to terminate the plan and receive a refund.

• Loan Facility: Once the savings plan acquires a surrender value, policyholders have the option to borrow money against it. The amount available as a loan depends on the insurer and the value of the insurance, providing a valuable liquidity option during financial emergencies.

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What is the Eligibility Criteria Guaranteed Savings Plan? 

The eligibility criteria for the Aditya Birla Guaranteed Savings Plans are as follows:

Entry Age:

• You must be at least 18 years old to create and manage your own savings plan.

• Parents or guardians can open a plan for a child at any age with no minimum entrance age for the child. However, the child can start using the plan independently after turning 18.

Maturity Age:

• The maximum maturity age for all plans is 75 years.

Socioeconomic Status and Health: The socioeconomic status and general health of an indiviual will influence the coverage and premium costs of the plan.

What are the Documents Required for Guaranteed Savings Plans? 

To enroll in the Aditya Birla Guaranteed Savings Plan, you will need to submit the following documents:

• Application Form

Address proof:

• Driver's License

• Voter ID Card

• Passport

• Aadhaar Card

Submit copies of any of the following identification documents:

• PAN Card

• Voter ID Card

• Aadhaar Card

• Passport-size picture

• If required, provide any necessary medical documents.

Proof of Salary and Employment:

• Current Pay Stubs

• Bank Statements

• Income Tax Returns

Note: Ensure that all the documents are valid, up-to-date, and correctly filled out to expedite the processing of your Guaranteed Savings Plan application.

How Does a Guaranteed Savings Plan Work?

Aditya Birla Guaranteed savings plans work as a type of investment plan that allows policyholders to accumulate savings over time while providing financial protection. 

Here's how they work based:

• Plan Selection: The first step is to choose a guaranteed savings plan that suits your financial objectives and needs. There are different plans with varying features and benefits, so it's essential to select the one that aligns with your goals.

• Premium Selection: Once you have chosen the plan, you need to decide on the premium amount you will contribute regularly. This can be a one-time lump sum payment or regular premiums paid over a specific term.

• Insurance Premium Payment Terms: You also need to select the terms of your insurance premium payment. This means deciding on the frequency of premium payments (e.g., monthly, quarterly, annually) and the duration for which you will pay the premiums.

• Payment of Charges: There might be some charges associated with the plan, such as administrative fees or processing costs. You will need to pay these charges as required by the selected plan.

• Accumulation Phase: During the premium payment term, you will keep paying the agreed-upon premiums, and your savings will gradually accumulate. The company will invest these funds in various financial instruments to generate returns and grow your savings.

• Guaranteed Income Distributions: Once the premium payment term ends, the plan enters the distribution phase. At this point, the policyholder can start receiving guaranteed income distributions based on the insurance benefits. These distributions can be in the form of regular payouts or a lump sum.

What is the Claim Process for the Plans? 

The claim process for Guaranteed Savings Plans in the event of the policyholder's passing involves the following steps:

• Notification: The first step is to inform the insurance company of the policyholder's demise. This should be done promptly by the nominee or beneficiary.

• Fill out the claim form: The next step is to fill out the death application form, which can be easily downloaded from the insurer's website. Along with the completed form, the claimant must also submit the original policy paperwork, a copy of the bank passbook or a cancelled check, and address information.

• Provide necessary documents: Depending on the circumstances of the policyholder's death, additional documentation may be required. If the death was due to a medical condition, the claimant should provide a doctor's statement, a certificate from the treating hospital, and a certificate from the workplace, school, or college. In the case of a tragic accident, the claimant must submit a copy of the FIR, PMR (Post-Mortem Report), or any police investigation report. All the provided documents should be duly attested with affidavits.

• Death certificate: A copy of the life assured's death certificate must be submitted along with the claim form and other required documents.

• Submission of claim: Once all the necessary documents are gathered, the claimant should submit the claim to the insurance company.

• Claim registration: Upon receiving the properly filled-out claim form and all the required documents, the insurer will register the claim for processing.

• Once the claim review is completed satisfactorily, the insurer will get in touch with the claimant. 

What are the Factors to Keep In Mind before buying the Guaranteed Savings Plan? 

When considering the Aditya Birla Guaranteed Savings Plan or any other savings plan, there are several factors to keep in mind:

• Reliable Profits: Look for a savings plan that offers attractive maturity benefits and additional returns, such as yearly and loyalty incentives, especially if you plan to make premium payments for an extended period.

• Risk Profile and Tolerance: Assess your risk tolerance and investment preferences. Younger investors might opt for higher-risk, higher-return investment options, while those who are risk-averse may prefer low-risk savings plans.

• Investment Options: Consider whether you want to invest in Unit Linked Insurance Plans (ULIPs) for higher risk and potential returns, or traditional guaranteed savings plans for lower risk but assured returns.

• Investment Time Frame: Determine the duration you wish to invest for. Some savings plans offer short to medium-term investment horizons, while others align with long-term financial goals.

• Balancing Reward and Risk: Choose a savings plan that strikes the right balance between market-linked returns and life insurance coverage, aligning with your risk profile and financial objectives.

• Long-term Objectives: Clearly define your savings goals, whether it's retirement planning, funding your child's education, wedding, or purchasing a property. Knowing your objectives will help you choose a suitable plan.

• Adaptability: Opt for a flexible savings plan that allows you to meet unforeseen short-term financial obligations and gives you the option to surrender the insurance if needed.

• Cost of the Plan: Understand the fees and charges associated with the savings plan to ensure it aligns with your financial capacity.

When selecting any financial product, it is essential to review the terms and conditions, benefits, and limitations of the plan. Additionally, consider seeking advice from a financial advisor like Policybazaar to make an informed decision based on your specific financial situation and goals.

Wrapping it up!

The Aditya Birla Guaranteed Savings Plan presents itself as a viable option for individuals seeking a secure and reliable financial future. Proper financial planning is crucial in today's unpredictable world, and this savings plan offers an opportunity to build a safe financial bubble for the future.