You may be planning to get adequate insurance for your family along with a low-risk investment option that can help you save money to meet future needs. How about skipping separate plans or policies and combining these two objectives into a single plan? It is possible with what we call an assured return plan with insurance.
An assured return or guaranteed return insurance plan can add value to your financial portfolio without a doubt. This is mainly because of two key concepts, namely, the insurance part of the plan and the guaranteed nature of the returns. These assured return plans are offered by several leading life insurers and financial institutions in the country. They can offer long-term financial advantages in tandem with higher financial stability in the future, along with freedom from market-linked risks or volatility.
What Assured Return Plans Offer
Assured return plans come with the following aspects:
- These plans offer guaranteed returns or income payouts after maturity. The exact payout structure varies by plan, and you can compare different options before choosing one. Some plans may provide payouts for a specific period, while others may offer annuity options that extend for longer durations.
- You also get life insurance coverage, typically linked to the premium amount, throughout the duration of the policy. If you unfortunately pass away in this period, the insurance company will pay the sum assured to your nominees to help them meet their financial needs without hassles.
- You can customise the policy duration, premium payment frequency, income/return payouts and their frequency, and other aspects.
- Riders can be added to these plans, such as premium waivers, accidental disability and death benefits. However, riders for critical or terminal illnesses are not commonly available in these plans.
- The premiums you pay are also tax-deductible under Section 80C, but taxability of the maturity amount depends on compliance with Section 10(10D) conditions.
Why Assured Returns Matter?
The best part is that your original investment is protected from market risks, while you get fully guaranteed returns as per the policy terms. This helps you know how much you will get after the maturity period. You can thus plan to meet financial goals or cover your costs in the future without bothering about risks. However, it is important to check the impact of taxation, policy charges, and inflation when estimating returns. Simultaneously, if anything happens to you in the interim, the insurer’s payout will keep your family financially protected. These plans help you save for meeting future objectives like higher education for children, weddings, retirement, etc.
Hence, these plans are the ideal combination of low risks, tax benefits, life coverage for safeguarding your family, and, most importantly, guaranteed returns on your investments. Doesn’t it sound like a win-win? You bet! Compare multiple plans from reputed insurers and finalise your decision today. Don’t forget to check the policy features, life coverage, premium amount, customisation features and riders, and, of course, the guaranteed returns offered by various insurance companies.