Achieving financial stability is among the best methods to secure your loved ones and live your dreams. One of the most optimal methods to build wealth for financial stability is by opting for savings schemes that will help you gradually build wealth. There are several saving schemes in the country with several features and promises. However, most schemes do not live up to the promises, which can be quite problematic for low-risk investors. Insurers have understood these perils faced by individuals and have launched a savings insurance plan called guaranteed return insurance policies.
What are Guaranteed Return Policies?
Guaranteed return insurance policies are life insurance plans that offer you guaranteed returns. The insurance plan will offer guaranteed returns either during the plan’s maturity or if you pass away. Guaranteed insurance plans come in two forms- participating and non-participating plans.
Participating plans offer a bonus based on the company’s profits. Non-participating plans do not offer bonuses.
You will get the dual benefit of insurance coverage and wealth creation under a single policy with guaranteed return insurance policies. Purchasing a guaranteed return insurance policy can be quite helpful for you during your golden years. This is because you can rely on the returns offered by the plan to achieve financial stability during your golden years.
Benefits of Guaranteed Return Insurance Plans
Listed below are some benefits you will get through guaranteed return insurance plans:
- Guaranteed returns: Unlike other investment options like stocks, debts, etc., guaranteed return insurance plans offer you assured returns through the plan. The returns offered by guaranteed plans are not affected by volatility in the market.
Opting for a guaranteed return investment plan in India can benefit you. You can be stress-free knowing that your investment will help you during different circumstances with guaranteed returns. For instance, you can rely on guaranteed returns to get financial support when you retire from the workforce.
- Insurance cover and enhanced protection: One of the biggest benefits of buying guaranteed return insurance plans is that you get to make sure the ones close to you are protected if something happens to you. Along with guaranteed returns, the savings plan also offers life insurance coverage.
So, if you face an unfortunate event and pass away unexpectedly, the guaranteed return investment plan in India will offer your loved ones the financial protection they need. Along with this, you can also improve the coverage you get through the plan by including add-ons. With add-ons, you get to include coverage for specific situations like critical illness coverage.
- Long-term tax-free returns: Guaranteed return insurance plans offer you tax benefits on the premiums paid for the plan and the maturity benefit earned through the plan. The premiums paid for the insurance plan are eligible for tax benefits as per Section 80C of the Income Tax Act.
The maturity benefit earned through the plan is eligible for long-term tax-free returns as per Section 10(10D) of the Income Tax Act. Therefore, getting dual benefits from the guaranteed return insurance plan can benefit you.
- Loans: Most leading life insurance companies like Tata AIA life insurance offer you the ability to avail a loan against the insurance plan. With the facility to avail of a loan, you can rely on the policy to get financial support during unprecedented emergencies.
Of course, the loan amount will differ for different policies and insurance plans. However, with applying for a loan, you can be at peace knowing that you can get immediate financial assistance.
Guaranteed return plans in India are optimal choices for individuals who are looking to earn guaranteed returns along with insurance coverage. With guaranteed return plans, you can be at peace knowing that your loved ones will be protected if something happens to you. You can also rely on the plan to get guaranteed returns during your golden years. Along with this, most guaranteed return plans come with a loan facility to help you deal with your emergent financial requirements.