If you’re looking for future stability and financial security, look no further than a guaranteed return plan. This is even more important in a market ecosystem where it is difficult to find investment choices that are free of risks and fluctuations. These plans are smart options for wealth creation in the long haul while enabling greater safety for your principal investment. Let us learn a little more about them below.
Securing Your Future with Guaranteed Return Plans: A Smart Investment Choice
Why Choose Guaranteed Return Plans?
Choosing a guaranteed return plan is a great option for the following reasons:
- These plans are ideal options if you are averse to taking risks. This fuses the dual benefits of life insurance coverage and guaranteed return rates.
- You don’t have to bother about market risks or fluctuations, while getting stable and predictable returns with bonus facilities.
- You will get a guaranteed return at the time of maturity in addition to life insurance coverage that safeguards your near and dear ones. However, the life insurance coverage may be limited compared to standalone policies.
- You can customise your premium payment frequency with a bid to plan your goals for the future. There are also riders/add-ons that boost the overall scope of your plan.
- It is possible to save ample funds for achieving long-term goals like the higher education of our children, retirement, weddings, etc.
- Tax benefits are readily available on your premiums up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. At the same time, the maturity and bonus payout may also be exempted as per Section 10 (10D), provided the premium-to-sum assured ratio meets the required 10:1 condition.
- Some policies offer options for getting the discounted value of the benefits in the future as a lump sum amount. This can include the future guaranteed income along with a percentage (may go up to 100% or more) of the total premiums that you paid.
Things to Keep in Mind While Choosing a Guaranteed Return Plan
Here are some additional aspects worth noting once you’ve chosen a guaranteed return plan.
- Always analyse the options available in the market before comparing plans and finalizing one that meets your requirements.
- Check the guaranteed return rate of the insurer to understand how much you will gain from the plan.
- Read the terms and conditions of the policy document carefully to avoid any issues later on.
- Select the tenure of the policy with care based on your life goals and customise your premium payment term and frequency along with the income frequency. Limited customisation options are typically available in these plans.
Thus, as you can see, you can count on a guaranteed return plan to enjoy complete freedom from market risks and volatility, since the returns are assured. This helps you plan for the future, while you also get ample life coverage simultaneously. If you are a risk-averse investor and want to build wealth smartly, these plans are prudent options for your investment portfolio.
