Guaranteed Return Insurance Plan

Invest risk-free with guaranteed return plans and stay prepared for a worry-free tomorrow.

Guaranteed Return Plans is an insurance cum savings plan that offers a 100% guaranteed return on investment along with a life cover. These plans provide benefits such as wealth creation, income for short-term or long-term goals, and guaranteed payouts for a fixed duration.

In this, you pay regular, limited, or single-pay premiums for a set period, and the plan offers guaranteed returns that can be used to cover varied financial goals. On maturity, you receive a payout of the guaranteed amount with accumulated additions (if any).

Best Guaranteed Return Plans in India

Invest in a guaranteed return insurance plan and build a corpus for a better future. Below, we’ve provided a customized list of the best-guaranteed return plans in India.

The sample guaranteed payout is calculated for a person who invested Rs.20,000 monthly for 5 years with a policy term of 10 years.

Benefits of Guaranteed Return Investment Plan

1. Dual Benefits of Savings and Insurance

   Guaranteed return plans are insurance cum savings plans that help you to build wealth with guaranteed returns and protect your family with a life cover. In this plan, you can easily rely on it because it’s risk-free, and market fluctuation does not affect your returns. Upon life insured unfortunate demise during the policy term, the life cover amount shall be payable to the nominee.

2. Protection for the Family

   Apart from helping you build wealth, these policies offer insurance coverage as well. If anything happens to you while the policy is active, your nominee shall receive the lump sum death benefit amount. The sum assured amount provides financial stability and helps your family with their finances during difficult times.

3. Stable Returns

   With guaranteed return plans, you can expect steady returns over time. Their returns do not depend on market fluctuation, which makes it ideal for someone with a low-risk appetite. These plans use simple interest and the power of compounding to help you build wealth steadily over the years. It is more reliable than other non-guaranteed return plans such as ULIPS since you can rest assured of guaranteed returns.

4. Get Maturity Benefit

   The guaranteed return plan offers a maturity benefit amount in a lump sum to the policyholder at the end of the policy term. The insurer discloses the maturity benefit amount to you at the policy inception. If you’ve taken a participating guaranteed return plan, then you may also get accrued bonuses and a final bonus.

5. Easy Customisation

   A guaranteed return plan offers you the flexibility to adjust the plan based on your needs.

   • You can choose a policy term that’s between 10 and 30 years; it may vary from plan to plan.
   • The plan gives you the flexibility to pay premiums as per your preference. You can choose regular, limited, or single-pay premium payment terms.
   • You can choose payout options, such as lump sum or monthly income.

6. Tax Benefits

   Under the guaranteed return plan, you can avail tax benefits in different sections.

   • Under section 80C, premiums you pay toward your policy are eligible for tax exemption of up to Rs.1.5 lakhs.
   • Under section 10(10D), you can avail yourself of tax benefits on the guaranteed returns you receive.

How Does a Guaranteed Return Insurance Plan Work?

• Mr. Sanjay bought a guaranteed return plan and chose to pay Rs.20,000 monthly for 5 years with a policy term of 10 years.
• He invested total Rs.12 lakhs for 5 years and got Rs.20.3 lakhs as a guaranteed maturity benefit after 10 years,

Factors to Consider when Buying a Guaranteed Return Plan

Here are some factors to consider while purchasing a guaranteed return insurance plan:

1. Assess your Financial Goals

   Assess your future short-term or long-term financial goals to estimate the coverage you may require. It includes buying a house, planning to build a start-up, saving for retirement, etc. You must choose a plan that best fits with your future goals and helps you achieve them.

2. Policy Tenure

   The policy tenure of your guaranteed return plan is important to consider because it allows you to lock in the interest rate for the entire policy term at policy inception. A longer tenure assures a better return at maturity, even during economic turmoil.

   For instance,

   • Sahil invests Rs. 40k monthly for five years, and the total investment amount would be Rs. 24 lakhs till the end of the premium payment term.
   • After 10 years, you’ll generate a corpus of Rs. 41.7 lakhs, with a profit of nearly Rs. 17 lakhs.

3. Premium Payments

   It would be best if you opt for a plan that provides flexible premium payment terms and premium payment frequency. It gives you greater leeway and comfort to adapt to fluctuating income or financial needs.

4. Adequate Returns

   While purchasing a guaranteed return plan, it’s important to know the guaranteed rate of return. It helps you determine whether the returns are adequate or not and how the returns will be affected by inflation. Please note that inflation can reduce savings over time, so if the returns don’t keep up with inflation, your investment value may decrease.

Conclusion

A guaranteed return insurance plan helps you build wealth for a better future and protect your family with a life cover. In this plan, you can easily rely on it for the future because it’s risk-free, and market fluctuation does not affect your returns.

If you still have some doubts regarding a guaranteed return plan, you can speak with our insurance experts and get personal assistance free of cost. Just give us a call today at 1800-4200-269 or visit PolicyX’s official website.