How to invest in Kotak Guaranteed Savings Plan to get a guaranteed monthly income?

A guaranteed monthly income from a Guaranteed Savings Plan can be immensely beneficial in more ways than one. For instance, such a source of income can help you pay your monthly bills like EMIs, child’s school fees, etc. On the other hand, when you retire, the same amount can help you meet your day-to-day expenses. But you need to invest wisely to make the most of the monthly income opportunity. Here’s offering some guidance in that regard. Read on to know it all!

Evaluate your future financial goals

As you seek a guaranteed monthly income, you can either look at a short-term or long-term goal. So, before you invest in Kotak Guaranteed Savings Plan, you will have to decide on that goal.

What do you want to do with those monthly payouts? This is important because the amount you need to save for monthly EMIs is vastly different from what you would need as a retirement income. Also, focusing on a goal, regardless of whether it is long-term or short-term, will help you stay on track with the savings and the premiums.

The assurance of maturity benefits

You need to select a savings plan that comes with the assurance of maturity benefits. You should have the assurance that as you have paid your premiums on time, you are going to receive the monthly payout.

The market volatility at any point or the fund’s performance are not the things that will impact your payouts. After all, you would not want any risk factor to offset your monthly income.

The liquidity factor in the plan

When you invest in Kotak Guaranteed Savings Plan, you get a certain degree of liquidity. It means you can withdraw a certain amount as a loan once your policy reaches its surrender value after two years. In most cases, you can get at least eighty percent of the plan’s surrender value as a loan.

Though this kind of liquidity is helpful in terms of meeting a financial emergency, remember that it reduces the amount you receive at maturity. As a result, your monthly income will be reduced. Although financial emergencies cannot be predicted, try to evaluate based on your current situation whether there is a chance that you will need a loan.

The flexibility of paying the premium

With a Guaranteed Savings Plan, you have the flexibility of paying the premium in one go or paying it as monthly instalments. The term of paying the premium must be chosen by you as per your convenience.

The last thing you would want is to lose out on the benefits by not paying the monthly premium on time. So, if you have a lump-sum amount with you at the moment, then pay it as the premium for the Guaranteed Savings Plan that you are applying for.

Parting note

Are you ready to make an investment in a Guaranteed Savings Plan now? Go ahead and invest the amount after considering your future goals, your suitable premium terms, and the liquidity factor.

Click here to know more about Kotak Guaranteed Savings Plan:

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