One of the most crucial aspects that we must include in our lives is financial stability. When you’re financially stable, you will be able to face any problems that life throws at you. Along with this, it will allow you to achieve all of your goals in life without any issues. Insurance companies have understood the importance of financial stability and have launched a guaranteed savings plan or a guaranteed returns insurance plan that offers savings and life insurance in a single plan.
What is a guaranteed life insurance plan?
A guaranteed return insurance plan is a life insurance policy that provides policyholders with the dual benefit of insurance coverage and guaranteed returns on investments in a single policy. When you buy the policy, your life gets insured. Additionally, a part of the premium you pay is invested for guaranteed returns, either during the policy or on maturity or both. The investment tools chosen in the plan are fixed-income securities (zero risks), which ensure the policyholder will get assured returns. In case of any eventualities, the appointed beneficiary will get the sum assured or the accumulated investment corpus, whichever is higher.
The benefits of choosing the best guaranteed returns plan
- The two-in-one benefit of both investment and insurance:
A guaranteed life insurance plan provides you with the dual benefit of insurance coverage along with investment returns. The premiums paid towards these plans are allocated towards insurance coverage and market-linked instruments. Hence, apart from securing your family’s future, you will also get the opportunity to save for your future goals. Along with this, the investments chosen in guaranteed returns insurance plans are generally low-risk instruments like securities and cash bonds. These instruments are generally not that affected by market fluctuations.
- Payouts at regular intervals:
With a guaranteed returns insurance plan, you will get a fixed percentage of the maturity benefit at regular intervals. You will be able to pick the amount you want and get it as per your requirement. You can use these plans to manage your regular income or pick the payouts to assist you through specific stages in life. For instance, if you are looking for financial support for an emergent situation, you can opt for 20% of the sum assured five years after purchasing the policy.
- Protect your loved one’s financial future:
At its core, the guaranteed returns insurance plan is an insurance plan. Therefore, in the event something unfortunate happens to you, your loved ones will be secured financially. With the plan, you can be at peace knowing that your family will have a financial net to deal with financial expenditures if something happens to you. However, you must opt for a coverage amount that will be enough for your family.
- Tax benefits:
Any policyholder who is paying regular premiums towards a guaranteed returns insurance plan will be able to enjoy tax benefits. The total premiums paid for a guaranteed returns insurance plan are deducted from the taxable income as per Section 80C of the Income Tax Act, 1961. Along with this, the death benefit, maturity benefit, and any other bonus obtained from the monthly investment plan are tax-free under Section 10(10D) of the Act.
- Waiver of premium:
If the policyholder has an accident and gets permanently disabled, the further premiums required to maintain the plan in effect are waived off. However, the policy will still be in effect, and the payments are made periodically or as decided.
If you’re looking for a plan that will provide you with insurance coverage along with assured returns, you must look into guaranteed returns insurance plans. With benefits like waiver of premium, regular payouts, insurance cum investment, etc., guaranteed return insurance plans are optimal. However, it would help if you did appropriate research before buying the plan. You can make use of online calculators to find the best guaranteed return insurance plan.