As the pandemic created financial crises throughout the world, you must have become conscious of your financial establishments. Analysing your current status and choosing to save money for future money goals would have become important. Without adequate planning and financial resources, many families lost their sole earning members of the family and were left stranded.
What could have prevented them from the financial burden? Have you been introduced to the guaranteed return insurance plan? Here is a detail about it and the reasons to opt for it in the long term.
What Is A Guaranteed Return Insurance Plan?
A guaranteed return insurance plan is a comprehensive life insurance plan that provides a life cover and guaranteed returns on maturity. Therefore, when you purchase the guaranteed return policy, one portion of your premium will go for the life cover, and the other will be utilised to accumulate the guaranteed returns. The guaranteed returns will be provided as a maturity benefit that you can employ for multiple reasons.
Why Should You Opt For A Guaranteed Return Plan?
Guaranteed return plans in India are increasing in importance for the following reasons.
- Life cover with guaranteed returns – A guaranteed return plan provides a life cover that will ascertain a death benefit to your family in case of your unexpected demise and a guaranteed return on maturity. Your investment for the savings benefit will not affect your life cover. Also, as the savings benefit does not include market-linked returns, it is not susceptible to risk and extremely secure.
- Plan for money goals precisely – As the returns are guaranteed in a guaranteed return insurance plan, you can precisely plan for your future financial goals. For instance, if you are saving money to pay the downpayment while building your new house in the future, you can decide on the premium and policy term based on the required fund.
- Long term benefit – The guaranteed return policy allows you to invest in the long term for huge accumulated savings benefits. When you choose a longer policy term, you can accommodate the policy at an affordable premium without realising the allocation of funds to your savings insurance plan. When you opt for an online insurance plan option such as the Tata AIA life insurance policy, you can read the policy features, compare them online, decide on the premium using the online premium calculator and decide on the purchase decision.
- Flexible features – The guaranteed return insurance plan offers flexible features. For instance, you can choose flexible premium payments options to pay it monthly, annually or semi-annually. Some plans offer flexible payout options, such as receiving the payout as a lump sum, regular income for a fixed period or whole life income. Based on your income and financial requirements, you can choose flexible features.
- Rider options – A guaranteed return insurance plan also provides add-on rider options. It will provide an additional insured sum to pay for special and emergent scenarios. For example, suppose you opt for the waiver of the premium rider. In that case, you will be waived off from paying future premiums if you get affected due to a total and permanent disability.
- Tax benefits – The premium you pay for investing in the guaranteed return insurance plan and the payout you receive will qualify for a tax deduction and tax exemption under the Income Tax Act, 1961 subject to policy terms and conditions.
Conclusion
A guaranteed return insurance plan is a comprehensive life insurance plan that provides a life cover and guaranteed returns on maturity. It is a secure investment that offers rider benefits, flexible features and tax benefits. While it provides a platform to invest in the long term, you can precisely plan for your future money goals as the returns are guaranteed! So, if you are planning to invest in life insurance with guaranteed returns, decide early, choose a longer policy term and stay invested for maximal benefits.
