- Get your capital back
- Enjoy life coverage
- Market-linked returns
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 that the capital you have invested is 100% safe irrespective of the market conditions. This plan also offers you a life cover benefit that covers your family members financially 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 you with complete information about capital-guaranteed plans including benefits, reasons to buy, and the best plans to consider.
Best Capital Guarantee Solution Plans
We have provided you with 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- Policy term Max- 60 years | - | 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, premium-payment tenure of 10 years, and 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 he wants market-related returns. He was looking for a plan that could provide him market-linked returns along with the guaranteed capital return.
Solution- His financial advisor advised him to buy a capital-guaranteed plan that offers both benefits. So he chooses ICICI Prudential Signature Capital Guarantee
Let’s understand how 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 the 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 80 C 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.
Capital Guarantee Plan: FAQs
1. What are capital guarantee plans?
Capital-guaranteed plans provide you with a guaranteed return on your capital along with market-linked returns. These plans also offer a life cover to the policyholder.
2. What are some of the best capital-guaranteed solution plans?
Some of the best capital-guaranteed solution plans include: ICICI Prudential Signature Capital Guarantee || HDFC Life C2I and Sanchay Fixed Maturity Plan 100% Capital Guarantee Combo plan Tata AIA Capital Guarantee Solution Max Life Smart Wealth Advantage Guarantee Plan PNB MetLife Capital Guarantee Plus
3. What are the tax benefits of the capital guarantee plans?
The capital-guaranteed plans offer you tax exemption up to the limit of Rs 1.5 lakhs per annum under section 80C of the Income Tax Act, 1961.
4. Who should buy Capital Guarantee Plans?
The following people should invest in a Capital Guaranteed Solution Low-risk takers Conservative investors Individuals with long-term goals
5. Which insurers offer capital-guaranteed plans?
Many reputed insurers offer capital-guaranteed plans including ICICI Prudential, HDFC Life, Max Life, Bajaj Allianz, etc.
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Written By: Himanshu Kumar
Himanshu is a seasoned content writer specializing in keeping readers engaged with the insurance industry, term and life insurance developments, etc. With an experience of 2 years in insurance and HR tech, Himanshu simplifies the insurance information and it is completely visible in his content pieces. He believes in making the content understandable to any common man.
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