What is a Capital Guarantee Plan?
A capital guarantee plan is a combination of ULIPs (Unit Linked Insurance Plan) and a guaranteed return plan. This plan provides you with market-linked returns along with a safety net that ensures the capital you have invested is 100% safe, irrespective of market conditions. This plan also offers a life cover benefit that financially covers your family members for the entire policy tenure.
This plan offers policyholders a range of benefits, including:
- Guarantee of your capital
- Wealth creation over time
- Life coverage for the entire policy tenure
- Market-linked returns
- Tax benefits
- Flexible withdrawals and a lot more
This article provides complete information about capital-guaranteed plans, including their benefits, reasons to buy, and the best plans to consider.
Best Capital Guarantee Solution Plans
We have provided a list of the best capital guarantee investment plans that you can choose from.
| Name of the Plan | Entry Age | Maximum Maturity Age | Policy Term | Maturity Benefits | Unique Features |
|---|---|---|---|---|---|
| ICICI Prudential Signature Capital Guarantee | Min- 18 years; Max- 60 years (Policy term) | - | 5 to 20 years | Rs 28,68,000 | Wealth Creation, Market-linked returns, Capital safety |
| HDFC Life C2I and Sanchay Fixed Maturity Plan 100% Capital Guarantee Combo plan | Min- 0 years; Max- 65 years | 75 years | 5 to 40 years | Rs 21,41,854 | Partial withdrawal option, Asset allocation and management, Flexible portfolio. |
| Tata AIA Capital Guarantee Solution | Min- 18 years; Max- 50 years | 75 years | 15 to 21 years | Rs 27,86,573 | Limited Payment Term, Choose Percentage of Guaranteed Amount, Multiple Fund Options |
| Max Life Smart Wealth Advantage Guarantee Plan | Min- 8 years; Max- 65 years | 100 years | 5 to 40 years | Rs 30,95,000 | Option to avail of Loans, Multiple discounts and special benefits, Accidental cover. |
| PNB MetLife Capital Guarantee Plus | Min- 6 years; Max- 60 years | 99 years | 8 to 26 years | Rs 25,09,700 | Growth potential, Top performing funds, Liquidity. |
| SUD Capital Guaranteed Solution | Min- 18 years; Max- 50 years | 65 years | 15 years | Rs 25,09,700 | Choose your investment strategy, Premium payment options, Return of insurance cost. |
| Bajaj Allianz Life Capital Goal Suraksha | Min- 0 years; Max- 55 years | 65 years | 10 to 20 years | Rs 31,09,000 | Fund Booster at maturity, Return of mortality charge, Life Cover. |
| Canara HSBC Guaranteed Saving Plan | Min- 0 years; Max- 60 years | 75 years | 10 to 20 years | Rs 28,45,000 | Guaranteed Yearly Addition, Guaranteed Loyalty Addition, Loan on policy. |
* The above premiums are for a 30-year-old male for a monthly premium of Rs 10,000, a premium payment tenure of 10 years, and a policy tenure of 20 years. The total premiums paid are Rs 12 lakhs.
How Does the Capital Guarantee Solution Plan Work?
Let’s understand how a Capital Guaranteed Plan works with a simple premium illustration.
Problem
Mr. Verma is a conscious investor who doesn’t take higher risks but at the same time wants market-related returns. He was looking for a plan that could provide him with market-linked returns along with a guaranteed capital return.
Solution
His financial advisor advised him to buy a capital-guaranteed plan that offers both benefits. So, he chose ICICI Prudential Signature Capital Guarantee.
Let’s understand how the ICICI Prudential Signature Capital Guarantee Plan works for him with a premium illustration table.
| Age of Policyholder | Annual Premiums | Policy Tenure | Premium Payment Term | Total Premiums Paid | Guaranteed Income | Additional Benefits |
|---|---|---|---|---|---|---|
| 35 years | Rs 1,20,000 | 20 years | 10 years | Rs 12 lakhs | Rs 13.15 lakhs | Rs 8.87 lakhs |
Benefits of Capital-Guaranteed Investments
Here are some benefits of Capital Guarantee Plans that policyholders enjoy.
-
Guaranteed Capital Returns
The capital-guaranteed solution offers you guaranteed capital returns. These are suitable for people who want to enjoy market-linked returns without taking risks.
-
Wealth Creation
These plans help you create wealth over a period. Starting early and compounding benefits help you to create wealth.
-
Life Coverage
These plans offer you a life cover that protects your family financially in case of your uncertain demise during the policy tenure.
-
Market-Linked Returns
You can enjoy market-linked returns with the capital-guaranteed solution without taking risks.
-
Systematic Withdrawals
The capital-guaranteed plans offer you the flexibility of withdrawals. You can make systematic partial withdrawals as per your requirements.
-
Tax Benefits
You can avail tax benefits with this plan under Section 80C and Section 10 (10D) of The Income Tax Act, 1961.
Who Should Invest in a Capital Guarantee Plan?
The following people should invest in a Capital Guaranteed Solution:
- Low-risk takers: People who prefer to take low risks with their capital can invest in a Capital Guaranteed Plan.
- Conservative investors: Those who want capital guaranteed with stable returns can invest in a Capital Guaranteed Solution.
- Individuals with long-term goals: If you have long-term goals such as child marriage, education, buying a home, etc., then you can buy a Capital Guaranteed Investment Plan.
Conclusion
You must consider buying a Capital Guaranteed Plan if you want market-linked returns but don’t want to risk your capital. These plans also come with a life cover that protects your family financially even in case of your unfortunate demise. We have provided you with a list of Best Capital Guaranteed Plans above which you can consider buying.
If you are still confused about which capital-guarantee plan is right for you, then you can contact us at PolicyX.com. One of our insurance representatives will contact you shortly and help you choose a plan that best fits your requirements.
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