Capital Guarantee Plan

Capital Guarantee Plans are a type of ULIP plan that offer insurance and investment benefits. Capital Guarantee Solution Plans are specifically created to secure the investor’s capital amount and invest a portion of the principal amount in the market to earn a profitable return. Under this plan, 50-60% of the amount invested goes into debt for capital protection, and the rest is invested in equity.

Read more
Best Investment Plans
  • Guaranteed Tax Savings

    Under sec 80C & 10(10D)
  • ₹ 1 Crore

    Invest 10k Per Month*
  • Zero LTCG Tax

    Unlike 10% in Mutual Funds

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Top performing plans with High Returns*
Invest ₹10K/month & Get ₹1 Crore returns*
View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp
We are rated
58.9 million
Registered Consumers
26.4 million

What is Capital Guarantee Solution Plan?

The capital guarantee plan is an investment, which majorly focuses to safeguard the investor’s principal from any losses during the economic downturns. Under the capital guarantee fund, the fund company absorbs any losses experienced by the underlying investment. Capital Guarantee Plans are basically ULIP plans, which is a combination of insurance and investment. Under this plan, 50-60% of the amount invested goes into debt for capital protection and the rest is invested in equity. The plan comes with a policy tenure of 10 years and a premium paying tenure of 5 years.

The major advantage of the capital guarantee plan is that on the maturity of the policy full premium is returned along with the additional benefits made by the product. The capital gain funds thus aim to invest majorly in conservative instruments to help minimize the probability of losses and offer guaranteed returns.

The maturity value of this plan depends on the market performance of the fund as well as returns from traditional guarantee plans when the tenure of the policy ends. The investors can pay the premium of the policy in yearly, half-yearly, quarterly, or monthly mode. The plan offers a minimum entry age of 18 years whereas, the maximum entry age of the policy ranges up to 65 years.  Along with the benefit of guaranteed market return, the plan also offers a life coverage to the family of the insured, which is 10 times of the annual premium paid by the insured. Thus, if the eventuality struck during the tenure of the policy, the family of the insured will receive an insurance cover of Rs.10 lakh on the Rs.1 lakh premium of the policy.

To offer the capital guarantee solution plan to the customers, the Policybzaar has tied up with four major insurance providers Bajaj Allianz, Edelweiss Tokio, HDFC Life, and Max Life. The minimum premium rate of the Capital Guarantee Solution is Rs.25,000 per annum.

Sample Illustration of Capital Guarantee Solution Plan

For instance, the HDFC capital Guarantee Protection plan combines HDFC Sanchay Plus and HDFC Life Click 2 Wealth. So, let’s assume Mr. Akhil invests Rs.1 lakh per annum in this plan for a tenure of 5 years, at least 50,000-60,000 will be invested in the guarantee plan which is HDFC  Life Sanchay Plus and the rest Rs.40,000 will go into ULIP that is HDFC Life Click 2 Wealth. After the completion of policy tenure of 10 years, Mr. Akhil will get the guaranteed return of the total premium of Rs. 5 lakh along with the market-linked returns happens on Rs.40,000.

Capital Guarantee Solutions

Insurers Guaranteed Amount Rate of Returns (Past Performance in 7 years) Return Amount (Past Performance in 7 years) Total Maturity Amount Maturity Amount (@8%)
HDFC Life 12 Lakh 17.2% 24.7 lakh 37.7 lakh 21.4 lakh
Bajaj Allianz 12.1 lakh 17.9% 26 lakh 38 lakh 21.3 lakh
Max Life 12 lakh 13.5% 16.8 lakh 28.8 lakh 21.3 lakh
Edelweiss Tokio 12.7 lakh 13.8% 16.6 lakh 29.3 lakh 21.6 lakh

*The rate of return is as on August 24, 2021

Note- Figures may vary based on market performance.

Should you Invest in Capital Guarantee Solution Plan?

Even though Capital Guarantee Solution Plan offers a 100% capital guarantee, it is important for investors to calculate the opportunity cost before making an investment. The investors should keep in mind that the market-linked returns on these plans will be less as compared to the returns that you will receive on pure ULIP plan for the same amount of money.

This is due to half of the money is invested in debt instruments to provide guaranteed returns and capital protection. In capital guarantee fund the participation in equity securities keeps on decreasing with the tenure of the policy and by the completion of 5th policy years, 80% of the investment is made in debt funds only. Also, the plan does not provide any fund options to choose from. The plan has a high opportunity cost. However, if you have a very low-risk appetite and capital guarantee means a lot to you then you can surely opt for this plan.

This plan is best suitable for investors whose sole purpose is capital protection and a guaranteed return. From the perspective of life cover, the policy might not be adequate for the investors. For example, you will receive an insurance coverage of Rs.2.5 lakh for a premium amount of Rs.25,000 per annum, whereas as per the experts the coverage amount should be 10-15 times of the annual income.

Wrapping it Up!

Investors who want to invest in the long-term and who do not have proper knowledge of the equity market can consider investing in the capital guarantee solution plan. Looking at the current economic situation of the country, one may not gain profitable returns in the pure market-linked products if the market goes down. However, the capital guarantee solution plan ensures guaranteed returns to the investors and help then to secure themselves financially in this tough time by protecting their money.


  • Q.1 What is a capital guarantee solution plan?

    Ans: A Capital guarantee plan or Capital guarantee solution plan is basically a combination of investment plus insurance. They can also be termed as ULIPs and offers 100% capital returns as their core benefit. Under the capital guarantee plan, the principal amount of the investor is protected from any uncertain future losses.
  • Q.2 Which is the best capital guarantee plan?

    Ans: Even though there are a lot of plans in the market, Policybzaar has tied up with four major insurance providers that are the best in the market, that is, Bajaj Allianz, Edelweiss Tokio, HDFC Life, and Max Life.
  • Q.3 How does a guarantee fund work?

    Ans: The capital guarantee plan comes with a policy tenure of 10 years and the premium payment tenure of 5 years. It works on a 50%-60% ratio basis. It means that 50% of the amount is invested in debt and 60% of the amount in equity.
  • Q.4 Is a guaranteed income plan good?

    Ans: As the income received and premiums paid under the capital guarantee plan are tax-free (terms and conditions applied), capital guarantee plans are definitely a good purchase. Also, as the plans do not have direct market exposure, a fixed rate of income is guaranteed even if the market drops.
  • Q.5 What is the maturity benefit under the capital guarantee plan?

    Ans: Under the capital guarantee plan maturity benefit, full premium is returned along with the additional benefits made by the product, if any.
Become a crorepati
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Average Rating
(Based on 0 Reviews)
Become a crorepati-2
capital guarantee

Investment plans articles

Recent Articles
Popular Articles
Wealth Creation

06 Feb 2023

The term 'wealth' has different meanings. Wealth could be the
Read more
Best Way to Invest 20,000 Rupees

31 Jan 2023

Saving is a primary goal, especially for a middle-class
Read more
Best Investment Plan for Students

31 Jan 2023

People are dependent on different sources of income for wealth
Read more
HDFC RD Interest Rates

30 Dec 2022

HDFC Bank is India's largest private sector bank and the world's
Read more
AXIS Bank RD Rates

30 Dec 2022

Axis Bank is the third-largest among Indian private sector
Read more
Best LIC Policies For Investment in 2023
When it comes to purchasing a life insurance plan, LIC policies can be a good investment choice given that it is a
Read more
Post Office Monthly Income Scheme - MIS Interest Rate 2022
Are you looking for an investment avenue that is safe and secure, earns substantial returns with a short locking
Read more
Short Term Investments Options
Short-term investments can be described as temporary investments or marketable securities, which can be easily
Read more
Best NRE Savings Accounts for NRIs in 2023
India is a growing economy and is getting a lot of global recognition these days. It has shown immense growth in
Read more
SBI Life Insurance Plans in India
SBI Life Insurance, a joint venture between State Bank of India (SBI) and BNP Paribas Assurance, provides
Read more

Download the Policybazaar app
to manage all your insurance needs.
  • Zero% commission
  • No hidden charges
  • Expert Advice
  • 100% calls recorded
Invest ₹10k/month Get ₹1Cr
Tax free on maturity*
Mobile +91
*T&C Applied.