One of the biggest milestones we plan to achieve in life is attaining financial stability. When you’ve attained financial stability, dealing with life goals, emergencies, etc., becomes quite easy. However, as we grow up, our responsibilities grow with us. Along with this, most investment plans in the market come with a decent amount of risk. Therefore, it becomes difficult to build wealth without dealing with a little bit of risk. But, if you opt for options like guaranteed return plans, you get guaranteed returns through your investment.
What is a Guaranteed Return Plan?
A guaranteed return insurance plan is a savings plan that offers you the dual benefit of insurance coverage and long-term savings with guaranteed returns.
With a guaranteed return plan, you get guaranteed returns through the plan. Along with this, you will get insurance coverage for your family and loved ones. As the policy is an insurance plan, you can also enhance the policy coverage by including riders in the plan. If you’re looking to purchase a guaranteed return plan, you must learn about a few of the features that it offers.
Features of a Guaranteed Return Plan
Listed below are some of the features you can get through a guaranteed return plan:
- Guaranteed returns: Most investments generally come with an underlying risk, and you aren’t provided with any assurance about the returns you can get through the guaranteed return investment. However, with a guaranteed return insurance plan, you can be at peace knowing that the premiums you have paid towards the plan will offer you the promised returns.
- Death benefit to beneficiaries: If you’ve purchased the guaranteed return insurance plan and you pass away before the plan reaches maturity, your beneficiaries will get the death benefit through the insurance policy. The policy will help you ensure your loved ones get the protection they need when you’re not around anymore.
- Low-risk investment: The guaranteed return insurance plan is an optimal choice for individuals looking for low-risk investments. As the policy generally opts for fixed-income securities like corporate bonds, government securities for investment, the risk factor is low.
- Retirement planning: The guaranteed return insurance plan is an optimal choice for individuals looking to prepare for their golden years. The endowment plan guaranteed returns will help you get the financial assistance to deal with your necessities during your golden years.
- Additional features: Most insurers like Tata AIA also offer various features and insurance coverage and guaranteed returns through the plan. For instance, you can avail of a loan against the policy with the Tata AIA policy. Therefore, it will help you meet your immediate financial requirements without hassles.
- Tax benefits: As per Section 80C and Section 80D of the Income Tax Act, you are liable to get tax benefits on the policy premium amount you have paid, the maturity, and the death benefits obtained through the policy. Therefore, it is an optimal way to lower your tax liabilities.
Conclusion
Guaranteed return plans in India are one of the best ways to make sure you get insurance coverage and guaranteed returns under a single policy. Apart from the base features, you also get access to several other features like tax benefits through the plan. In addition, most guaranteed return plans also come with unique features to help you. These features can help you maximise the benefits you can get through the plan. However, you must research the different plans available for you before selecting one.
