Savings
2024-05-14 4 Min read
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Today’s financial landscape offers a wide array of insurance policies that cater to the needs and preferences of the evolving user. Rather than limiting themselves to a single-benefit investment policy, most insurance seekers prefer bundled policies that provide the dual advantages of savings as well as insurance coverage. And this is what endowment plans do best. An endowment policy is a type of life insurance that facilitates the accumulation of long-term wealth while also providing life insurance coverage, thereby establishing a financial safety net for the entire family.
Guaranteed Additions in Flexible Endowment Plans
An endowment insurance plan serves as a financial instrument to assist your loved ones in maintaining their current lifestyle. Even if you are no longer around, it becomes possible for your family members to pursue their financial objectives at different life phases. One such policy is the SUD Century Gold savings plans that offers both protection and an avenue for saving towards future life goals, be it buying your house or building a corpus for your retirement or your child’s higher education.
Being an endowment plan, the Century Gold Plan comes with numerous benefits, it is the feature of guaranteed returns that makes it so appealing. The mainstay of endowment insurance is that it allows financial planning for crucial stages of life, such as your child’s education or your retirement. For investors who do not agree with the inherent volatility of the equity market, getting steady and predictable returns through a guaranteed savings plan is preferred.
As the best endowment policies in India are typically long-term, the returns can be tailored to suit diverse life-stage requirements and financial objectives.
Being an endowment plan, the Century Gold Plan comes with numerous benefits, it is the feature of guaranteed returns that makes it so appealing. The mainstay of endowment insurance is that it allows financial planning for crucial stages of life, such as your child’s education or your retirement. For investors who do not agree with the inherent volatility of the equity market, getting steady and predictable returns through a guaranteed savings plan is preferred.
As the best endowment policies in India are typically long-term, the returns can be tailored to suit diverse life-stage requirements and financial objectives.
How Century Gold Plan Allows Earning Rewards for Commitment?
In the Century Gold Plan, guaranteed additions will be attached to the policy at the end of a policy year as per the schedule1 given below:
Let us understand the benefit of guaranteed additions with the help of the following example: Seema Nayak, a 30-year-old who has invested in the SUD Century Gold Planwith the following details:
● Annual Premium: INR 1 lakh per year
● Premium Paying Term: 10 years.
● Policy Term: 20 years
After paying the premium for 10 years, starting the 11th year, she will start receiving the Guaranteed Additions, which will continue for the entire policy tenure. Let us see how the policy will perform under the two plan options1:
1.Goal Sure Plan
If all goes well and Seema outlives the policy, when the plan matures, she will receive:
● Sum Assured: INR 16,05,040
● Guaranteed Additions: INR 7 lakh
● Maturity benefit: INR 23,05,040 Suppose Seema passes away in the 7th year of the policy, after paying INR 7 lakhs as the premium. Then, her brother, who is her nominee, will receive a death
● benefit of INR 10,50,000.
2.Edu Sure Plan Option
The maturity amount:
● Sum Assured: INR 15,73,050
● Guaranteed Additions: INR 6 lakh
● Maturity benefit: INR. 21,73,050
In case Seema passes away at the end of 7th year of the policy, the nominee will receive:
● Death Benefit: INR 10,50,000 (immediate death benefit)
● Total monthly income: INR 7,80,000
● Maturity Benefit: INR 21,73,050
● Total benefits received by the nominee: INR 40,03,050
| Premium Paying Term | Guaranteed Additions start from | % of the Annualised Goal Sure Premium | % of the Annualised Edu Care Premium |
|---|---|---|---|
| 5 years | 6th year | 40% | 30% |
| 6 years | 7th year | 50% | 40% |
| 8 years | 9th year | 60% | 50% |
| 10 years | 11th year | 70% | 60% |
Let us understand the benefit of guaranteed additions with the help of the following example: Seema Nayak, a 30-year-old who has invested in the SUD Century Gold Planwith the following details:
● Annual Premium: INR 1 lakh per year
● Premium Paying Term: 10 years.
● Policy Term: 20 years
After paying the premium for 10 years, starting the 11th year, she will start receiving the Guaranteed Additions, which will continue for the entire policy tenure. Let us see how the policy will perform under the two plan options1:
1.Goal Sure Plan
If all goes well and Seema outlives the policy, when the plan matures, she will receive:
● Sum Assured: INR 16,05,040
● Guaranteed Additions: INR 7 lakh
● Maturity benefit: INR 23,05,040 Suppose Seema passes away in the 7th year of the policy, after paying INR 7 lakhs as the premium. Then, her brother, who is her nominee, will receive a death
● benefit of INR 10,50,000.
2.Edu Sure Plan Option
The maturity amount:
● Sum Assured: INR 15,73,050
● Guaranteed Additions: INR 6 lakh
● Maturity benefit: INR. 21,73,050
In case Seema passes away at the end of 7th year of the policy, the nominee will receive:
● Death Benefit: INR 10,50,000 (immediate death benefit)
● Total monthly income: INR 7,80,000
● Maturity Benefit: INR 21,73,050
● Total benefits received by the nominee: INR 40,03,050
Conclusion
Saving money can bring you remarkable financial rewards. Even with small contributions, you get the opportunity to grow them into a substantial amount. POS-SUD Life Sanchay allows you to take the smallest of steps towards a better and more secure future. With a minimum premium of ₹6,000, you can start saving for a long-term goal. A unique endowment plan, POS-SUD Life Sanchay offers you the dual benefits of life insurance and supplementary savings. The disciplined savings of 10 years provide you with a 10-year period of extra income. Invest today and enjoy financial security and empowerment.
Other highlighting benefits of the SUD Century Gold Plan
Here are some of the benefits that you can enjoy with the SUD Century Gold Plan:
● Dual benefits
Being endowment insurance, the Century Gold plan provides the dual benefits of savings and protection. In case of the death of the insured, the nominee receives the death benefit. You can also get the benefits of a savings plan as the policy allows you to build a substantial corpus over time.
● Flexibility
Another major benefit of this policy is its flexible nature.
● Premium paying term
You can choose a premium paying term from 5/ 6/ 8/ 10 years that is most suitable to your financial plan. You also have the option to alter this.
● Plan options
There are 2 plan options to choose from:
● Goal Sure
● Edu Sure, where the death benefit is paid out in 3 parts: at the time of death, during the policy term, and at the time of maturity.
● Frequency of paying premium
The premium for the policy can be paid monthly, quarterly, semi-annually or annually, as per your preferences.
● Tax benefits
The premium that you pay towards the Century Gold plan allows you tax deductions of INR 1.5 lakhs/year under Section 80C2. You can also enjoy tax exemptions on the maturity benefit under Section 10(10D). For expert advice on tax planning, get in touch with a professional tax advisor today.
● Dual benefits
Being endowment insurance, the Century Gold plan provides the dual benefits of savings and protection. In case of the death of the insured, the nominee receives the death benefit. You can also get the benefits of a savings plan as the policy allows you to build a substantial corpus over time.
● Flexibility
Another major benefit of this policy is its flexible nature.
● Premium paying term
You can choose a premium paying term from 5/ 6/ 8/ 10 years that is most suitable to your financial plan. You also have the option to alter this.
● Plan options
There are 2 plan options to choose from:
● Goal Sure
● Edu Sure, where the death benefit is paid out in 3 parts: at the time of death, during the policy term, and at the time of maturity.
● Frequency of paying premium
The premium for the policy can be paid monthly, quarterly, semi-annually or annually, as per your preferences.
● Tax benefits
The premium that you pay towards the Century Gold plan allows you tax deductions of INR 1.5 lakhs/year under Section 80C2. You can also enjoy tax exemptions on the maturity benefit under Section 10(10D). For expert advice on tax planning, get in touch with a professional tax advisor today.
Conclusion
An endowment plan like the Century Gold Plan serves as a crucial financial instrument, safeguarding you from economic setbacks and uncertainties. In a time when the world is engulfed with uncertainties and rising risks, the significance of insurance has grown significantly. Century Gold Plan, which is one of the, offers financial stability and shields against unforeseen losses, be it due to death, illness, accidents, theft, disasters, or any unexpected occurrence.
Reference
1. https://www.sudlife.in/Products/Century%20Gold%20Brochure%20V07.pdf
2.https://incometaxindia.gov.in/tutorials/20.%20tax%20benefits%20due%20to%20health%20insurance.pdf
2.https://incometaxindia.gov.in/tutorials/20.%20tax%20benefits%20due%20to%20health%20insurance.pdf
Disclaimer
Star Union Dai-ichi Life Insurance Company Limited is the name of the Insurance Company and “SUD Life Century Gold” is the name of the plan. Neither the name of the Insurance Company nor the name of the plan in anyway indicates the quality of the plan, its future prospects or returns.
Reference: SUD Life Century Gold | UIN: 142N087V02
SUD Life Century Gold | UIN: 142N087V02 | A Non-Linked Non-Participating Individual Savings Life Insurance Plan Star Union Dai-ichi Life Insurance Company Limited | IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472
Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.
Reference: SUD Life Century Gold | UIN: 142N087V02
SUD Life Century Gold | UIN: 142N087V02 | A Non-Linked Non-Participating Individual Savings Life Insurance Plan Star Union Dai-ichi Life Insurance Company Limited | IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472
Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.
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