Friday, May 24

5 Benefits of Kotak Assured Savings Plans for Long-Term Financial Planning

Adding Kotak’s Assured Savings Plans to your investment portfolio can be wise. Know the multiple benefits offered by these plans.

Today, there are various long-term investment options available in the market. However, choosing the one that best suits your financial goals and requirements is vital. Kotak Assured Savings Plan and Kotak Guaranteed Savings Plan are two such investment options that offer several investment benefits.

These savings plans are endowment plans that can help you save for your future financial goals while providing life insurance coverage. Here are some of the benefits of these assured savings plans.

  • Guaranteed Returns

One of the significant benefits of a Kotak Assured Savings Plan is that it offers guaranteed returns on investment. The plan provides a fixed rate of return throughout the policy term, ensuring that your savings grow steadily. Therefore, it can be particularly beneficial for those who prefer a low-risk investment option for long-term financial planning.

  • Guaranteed Loyalty Addition

Guaranteed Loyalty Addition (GLA) is an additional benefit provided to the policyholder for staying invested in an assured savings plan for longer. Under this feature, you’ll be eligible to receive a certain percentage of the sum assured as an additional benefit at the end of the policy term. The percentage of GLA varies depending on the policy term and the premium amount paid by the policyholder.

For instance,  the GLA percentage in an assured savings plan can range from 10 to 20% of the sum assured for policy terms ranging from 5 to 10 years. 

  • Flexibility

These plans offer a significant amount of flexibility in terms of premium payments and policy terms. So, you can choose the premium payment frequency and the policy term as per your financial goals and requirements. Moreover, the plan offers a range of riders, such as accidental death benefit, critical illness rider, and waiver of premium, which can be added to the policy to enhance the coverage.

  • Tax Benefits

Kotak Assured Savings Plans also offer tax benefits under the income tax act of 1961. Under Section 80C, you can claim a tax deduction of up to ₹1.5 lakhs for the premium paid towards the policy. Also, the maturity benefits and bonuses received are tax-free under Section 10(10D).

Remember, these tax benefits are available only when the premium paid doesn’t go beyond 10% of the sum assured. Secondly, section 80C benefits are available under the old tax regime only.

  • Life Insurance Coverage

These plans provide life insurance coverage, which ensures financial protection for the policyholder’s family in case of any unfortunate event. The plan offers a death benefit payable to the nominee if the policyholder passes away during the policy term. Therefore, you can have peace of mind, knowing that your family will be financially secure in your absence.

Long-term financial planning is crucial to ensure financial stability for your family. Assured savings plans can be a good option to invest for a long period and earn fixed returns without worrying about market conditions. So, consider investing a part of your portfolio toward these plans from Kotak.