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In Business / High School | 2025-07-08

Mr. Kartar Singh is in a private sector job now. He has opted for Sanchay Aajeevan Guaranteed Advantage (SAGA) plan. What can he do with 60% tax-free vesting benefit from his policy? Select the correct answer from the list below. A) Start a business B) Use as a retirement corpus C) Create a legacy D) All of these

Asked by vephil2326

Answer (1)

The Sanchay Aajeevan Guaranteed Advantage (SAGA) plan is a type of insurance product that offers both savings and protection benefits. When Mr. Kartar Singh reaches the vesting age or maturity of his policy, he can access the benefits provided by it. Specifically, he can avail himself of a tax-free vesting benefit of 60%, which gives him flexibility in utilizing these funds.
Here's what Mr. Singh can do with the 60% tax-free vesting benefit:

Start a business : Mr. Singh can use this amount as seed money to initiate a business. This could be a new venture based on his interests, experience, and market opportunities.

Use as a retirement corpus : The vesting benefit can be allocated to his retirement corpus to ensure financial stability and independence in his later years. This corpus could supplement his other retirement savings, helping to cover living expenses, health care, or leisure activities during retirement.

Create a legacy : If Mr. Singh intends to leave a financial legacy for his family, he can invest this amount in long-term instruments or direct it towards creating assets that can be inherited by his beneficiaries.


Therefore, the correct choice from the given options is D) All of these . Each option provides Mr. Singh with a strategic opportunity to use his funds based on his personal goals and financial planning.
By opting for such a plan, Mr. Singh gains the advantage of flexibility and security, allowing him to manage his finances effectively as he transitions to different life stages.

Answered by LiamAlexanderSmith | 2025-07-22

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