Question 1

What is a Capital Guarantee Solution?

Accepted Answer

A Capital guaranteed solution is a specifically designed financial plan that combines the benefits of market linked returns along with guaranteed1 returns and capital guarantee1.
Under the capital guaranteed investments, the capital is 100% secure throughout the period of investment giving 100% return of investment and also market linked returns through money invested equity, debt or balanced funds.
The major advantage of the capital guarantee plan is that no matter how bad the market performs your entire investment amount is 100% guaranteed1.
On maturity, you will get returns from the upside of market-linked investments2 as well as returns on the traditional guaranteed plan.

Question 2

How much tax can you save by investing in this plan?

Accepted Answer

The premiums paid are eligible for Deduction u/s 123 (read with Schedule XV, Sr. No. 1, 2 & 4 ) up to ₹1.5 Lakh. You can also enjoy tax-free4 payout as the Maturity Benefit is exempt subject to conditions u/s 11 (read with Schedule II, Sr. No. 2)4.

Question 3

What are premium paying terms available for this plan?

Accepted Answer

You can pay premiums for 7 years and enjoy maturity benefit on the 15th year
You can pay premiums for 10 years and enjoy maturity benefit on the 20th year

Question 4

What happens if you discontinue paying your premiums?

Accepted Answer

If premium payment is discontinued after your policy has acquired a surrender value, your policy will continue as a ‘paid-up’ policy with reduced benefits. If you discontinue premium payment before your policy has acquired a surrender value, your policy will lapse and no benefits will be paid. For more details, please refer to the brochure.