A guaranteed savings plan (GSP) is a non-participating, non-endowment life insurance plan that offers two-fold benefits. It has an insurance component with death benefits, and along with that, you also receive an assured lump sum amount at maturity.
The aim of this plan is to help you save up for your long-term goals, along with ensuring financial protection for your loved ones in your absence. But why is getting a GSP so important during a pandemic? Let’s find out!
Importance of a guaranteed savings plan realized from the pandemic
The significance of timely savings can never be stressed enough, especially in the face of the pandemic. With that being said, here are the lessons learnt from the pandemic about having a savings plan.
Need for long-term financial plans –
The pandemic has shown the world that uncertainties and emergencies are a part of life. In fact, emergencies can come unannounced. Several people have lost their jobs or faced serious pay cuts amid the pandemic. Thus, the importance of long-term financial plans has been clearly outlined in this situation. Such plans are crucial not only to build your wealth but also to avoid future financial crises.
It is also relevant to mention that such long-term financial planning is not a one-time thing. It is something that you need to work on constantly. You need to realign the goals and adjust the savings amount accordingly. A GSP is ideal for that reason. After all, it is for long-term savings and to help you in times of need.
Keeping emergency capital aside –
If you want to ensure financial security in times of need, then you need to set aside emergency capital with a definite payout. This is particularly true for the ones who have recently entered the workforce or have started a business of their own. Their chance of facing a financial crisis during the pandemic is even greater. Therefore, they need to think of setting aside emergency capital from day one.
A GSP is perfect in this regard because it lets you set aside a sizable capital with assured payouts. In addition to that, it helps you increase your wealth with bonuses and interest additions. The emergency capital that you build up like this can help you tide over any unforeseen circumstances and offer financial protection to your loved ones.
Visit here to invest in Kotak Guaranteed Savings Plan.
Significance of a GSP –
As mentioned before, the pandemic has shown the world that sudden events can completely change the track of life, regardless of the socio-economic background of an individual. At the end of the day, no one could have predicted that life would be turned upside down this way due to a pandemic. In this situation, a GSP is more than a tax-saving investment option.
Of course, it helps that a GSP comes with tax benefits. However, when you think of it in terms of the pandemic scenario, a GSP offers absolute financial security to you and your family members. You can be assured that finances will not be a problem even in an emergency.
That’s all! If you are yet to invest in a GSP, then now is the time. Get in touch with your bank and talk to them about the features of their plan before you go ahead and apply for it.
Click here to know more about Kotak Guaranteed Savings Plan: https://www.kotaklife.com/online-plans/savings-plan
