You choose a Guaranteed Savings Plan for many reasons. While some choose it to accumulate a good corpus for their post-retirement plans, others get the plan to meet their short-term goals. Everyone wants to secure the financial future of their family by opting for such a savings plan. Furthermore, you can tick all these boxes when you renew your Guaranteed Savings Plan on time. With that being said, here are further details on the benefits of renewing the plan.
1. The added benefit of renewing the plan
You already know about the maturity benefits and the loyalty additions that are a part of a Guaranteed Savings Plan. Of course, you can invest in other schemes with the amount you receive on maturity. However, you will lose out on the additional benefits in that case.
One of the most important reasons to renew the plan is that you get an extra benefit from the insurance company. Besides, renewing the policy after you invest in Kotak Guaranteed Savings Plan will be much easier and faster than assessing and getting a new investment policy.
2. No extra hassle or additional costs
When you get a life insurance policy for the first time, you must go through a lot of assessments. Your age, medical history, family situation, job situation, and more are considered before the insurer agrees to offer you the policy.
But renewing a policy is easier because you will not have to go through the entire process again once you invest in Kotak Guaranteed Savings Plan. Besides, if you have paid the premium on time and have been a loyal customer of the bank, then you will be readily given the approval for renewal.
3. Continue to enjoy the tax benefits
According to Section 80C of the Income Tax Act, 1961, the premiums paid for a Guaranteed Savings Plan get tax exemption up to ₹1.5 lakh. The death benefits and maturity benefits under the plan also get tax deductions under Section 10 (10D).
Thus, renewing the plan is a good idea when you are looking for a tax-saving tool. Of course, there are other tax-saving plans as well. But since you are already familiar with this plan and its features, you will not have to start from the basics.
4. Extending the tenure of your plan
Financial goals change as per life situations. Therefore, you might think of renewing the plan also because of the recent changes in your life. Maybe you started the plan with a short-term goal in mind, and tenure of seven years suited you perfectly for that. But your plans might have changed for some reason, and now you want to save up for retirement. In that case, you might need a longer duration of fifteen years. You can make these changes while renewing your Guaranteed Savings Plan.
So, if your Guaranteed Savings Plan is nearing maturity, then it is high time to start thinking about renewing it. Talk to your insurer for further details!
Click here to know more about Kotak Guaranteed Savings Plan: https://www.kotaklife.com/online-plans/savings-plan