As the fluctuations in the market have become a common occurrence, many individuals are on the hunt for different products that promise guaranteed returns. Along with this, with a global pandemic taking over the world, ensuring the financial future of your loved ones has become an important aspect.
Among the different plans available in the market, life insurance with guaranteed returns plans are one of the most effective ways to generate wealth and secure your family at the same time. Let’s look at the plan in detail.
What are guaranteed return plans?
A guaranteed return investment plan in India is an insurance plan that will provide the policyholder with insurance coverage, maturity benefits and assured returns. This life insurance with guaranteed returns plan provides the total sum assured to the policyholder when the plan reaches maturity. If the policyholder passes away during the policy’s term, the beneficiaries will get the sum assured. Thus, with a guaranteed returns plan in place, you will be able to protect your family and build a financial corpus for yourself over the long term.
Some of the benefits offered by a guaranteed insurance returns plan are:
- Financial safekeeping:
With a guaranteed returns investment plan, you will not have to worry about your financial future. The instruments used in guaranteed return plans generally carry minimal risks and are therefore excellent for building wealth over the long term. Along with this, they are not affected by market volatility and continue to provide the same returns.
Generally, you opt for insurance policies as a way to ensure your family is protected and you get to build wealth over the long term. However, if you face an emergency, your family may wish to liquidate the investments made for the long term. The method of liquidating insurance plans before they hit maturity is called ‘surrender’.
Most of the insurance products in the market do not allow you to break the lock-in period. For the ones that do allow, you have to pay heavy charges. However, with guaranteed return plans, you can easily surrender your plan for dealing with financial emergencies. You can surrender the plan in the initial five years without paying any surrender charges. You will get back your entire invested capital without any deductions.
- Life cover:
If, as the sole breadwinner of a household, you meet with an unexpected demise, the financial stability of the household will get disrupted. For such situations, a guaranteed returns plan would work quite well. They guarantee long-term income with security against unforeseen financial adversities.
- Tax benefits:
The guaranteed return plans provide you with the triple tax benefit. The premiums paid are tax deductible and the returns are tax-exempt under the Indian Income Tax Act. It can help you save the amount you pay in taxes and build a financial corpus for yourself.
If you’re on the lookout for a plan that will provide you with assured returns and coverage, the guaranteed returns plan will be ideal for you. The guaranteed returns insurance plan allows you to protect your loved ones and achieve your long-term financial goals. If you’re looking to purchase the plan, it will help if you look online, as you get access to different features. For example, if you choose to opt for TATA AIA life insurance, you can check the TATA AIA policy status any time you want by visiting their website.
Some of the common queries on the internet:
1. Is it good to invest in a guaranteed income plan?
Yes, a guaranteed income plan is an optimal plan for individuals looking for plans that provide assured returns and insurance coverage. Getting a guaranteed income when you enter your golden years can be quite helpful to deal with the expenditures.
2. How do I get a guaranteed return on investment?
If you’re looking for a guaranteed return on your investment, you must look into low-risk plans. Among the many plans available, you can look into the guaranteed returns plan. It will provide you with insurance coverage, guaranteed returns and tax benefits.