Capital Guarantee Solution

Capital guaranteed investments are specifically designed financial products that combine the features of two or more products . Max Life Insurance has introduced the capital guarantee solution 1 to serve as a life insurance solution to help you reap market-linked returns through the Max Life Online Saving Plan and provides the confidence of guaranteed returns with Smart Wealth Advantage Guarantee Plan along with the provision of life insurance cover.

Under the capital guaranteed investments, the capital is entirely secure throughout the policy period, promising 100% capital returns to the investor and they also benefit from the market's linked return through money invested in funds of their choice which could be debt, equity, balance or a combination.

Before we understand more about how capital guarantee solution works, it is crucial to know more about the components that make up this solution – Max Life Online Savings Plan and Smart Wealth Advantage Guarantee Plan. Let’s take a look at how these plans work:

Capital guarantee investments are becoming more popular because of their earning potential. However, as an investor, you would want to know what happens to your hard-earned income when you invest it in a policy. Hence, let’s understand how capital guarantee investments works in detail by considering the case of Mr. Mehra.

Mr. Mehra is 35, working as a government servant. He wishes to save for his dream house by finding the right investment vehicle. As a salaried man, he is worried about investing in market-linked products because of the volatile nature of returns.

He decides to play it safe by investing his money in a Capital Guarantee Solution. He makes a monthly investment of Rs. 20,000 for the next 5 years (premium payment term) and stays invested till the next 20 years (policy term).

Let’s take a look at both components of a Capital Guarantee Solution to understand how it works in both aspects for Mr. Mehra:

No one wants to lose their money because of bad financial choices. But, at the same time, it is difficult to pass up an opportunity to grow your corpus. The solution here is to choose an investment tool that addresses such particular financial needs. Unlike regular ULIPs and savings plan, Capital Guarantee Solution (CGS) is a step ahead in terms of innovation in financial products.

Even though ULIPs are in itself an excellent tool for wealth creation and life security, capital guaranteed investments solutions scheme provides even more tailored benefits.The assurance of receiving the initial capital at the end of the policy term is an enormous advantage for investors who have limited risk-appetites. The market-linked returns and life security serve as additional benefits.

Before making your investment decision, it is crucial to understand what you will get in return properly. Here are the benefits associated with Max Life Capital Guaranteed Solution (CGS):

Ideally, investors who wish to invest for long term but do not wish to endure the high-risks of market-linked investments might choose Capital Guarantee Solution 1.

At any given time, capital guaranteed investments serve as a risk-free investment choice in contrast to pure market-linked products, which may not provide profitable returns ere there is risk to the invested capital if the market falls. The capital guaranteed investments scheme assures investors' that their money is protected, is returned and assists them in financially securing themselves by protecting their life and their money.

However, there is no rule that suggests only a specific category of investors should go for capital guaranteed investments. It can be a favourable investment choice for you if you fall under the following categories:

• Salaried individuals
• Self-employed individuals
• Individuals looking for long-term investments
• Individuals with low-risk appetites
• Individuals who want life security and wealth creation under a single product
• Individuals who want to secure their money with and need the assurance of guaranteed returns and wealth creation through market linked returns.