Buy a Life Insurance Plan that Offers Guaranteed Returns!


5 min read

Are you a calculative investor who doesn’t want to take many risks? If so, choose life insurance plans that allow guaranteed returns. To know more about such plans, read on the post.

Life Insurance Plan with Guaranteed Returns

Insurance is a vast subject offering varied plans and policies that stretches over a vast horizon. If you are looking for risk free plans with assured return on premium, you need to buy policies with guaranteed return insurance plans. These plans allow returns in the form of regular payout that you can receive through the term of the policy or at maturity as lump sum pay.

Life is unpredictable and you cannot be sure about the impending crisis that might  strike you anytime. Thus, it is always safe to be prepared for the future. At times life throws such hurdles that are beyond your imagination. Though you may not be able to prevent such things from happening, you can definitely do something to lower the intensity or impact of such hurdles. An insurance is just the right thing that supports you during such grave times.

Besides, if you are the key earning member of the family, it becomes your responsibility to look after the financial security of the family and the children so that they could lead a secured and steady life throughout. Thus, a life term insurance plan with guaranteed returns is a policy that you can rely on to support you in fulfilling the responsibility towards your dependents efficiently.

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An Overview of Endowment Plans, Money Back plans and Annuity / Pension Plans

With a term life insurance policy you can offer your loved ones a financial pad to fall back on in case of your demise. However, if you are looking for assured or guaranteed returns in  plan in the form of regular payouts, you may seek a guaranteed returns plan on your investment. We are discussing some such plans that offer savings as well as investment opportunities to the insured with guaranteed returns:

Two such best guaranteed return investment plans are Endowment Plans and Money Back plans.

These saving plans allow the investor to earn assured money along with guaranteed bonus amounts at maturity. Further, it also allows tax benefits and death benefits (to the beneficiary). Let’s understand these plans below:

1. Endowment Plan

For those who want to build a savings amount without going through risks and want to secure their families financially in the event of their unfortunate demise, an endowment plan is the best policy to purchase. Endowment plans are great combinations of savings and insurance policies offering several benefits such as savings over long term, coverage of life insurance as well as tax benefits. This is a plan of life insurance with guaranteed returns.

Thus, with an endowment plan, you not only receive life protection, but can get money regularly as payouts to support your future financial milestones. These traditional plans offer regular payouts on specific dates to the insured if they continue paying premiums on time.

Benefits of an Endowment Plan:

  • These are low risk plans that allow guaranteed returns
  • In the event of the demise of the insured, the sum assured is offered to the nominee
  • Endowment plans are goal based savings plan that support the insured to build a corpus to fulfill their future goals
  • These life insurance plans also allow the option of added coverage by means of riders that can be availed at nominal prices
  • Endowment plans also allow taxpayers to avail tax benefits under Section 80C and 10(10D)
  • With endowment plans, the insured get the option of availing loan during emergency situations

2. Money Back Plans

Money back plans are the ones which allow the insured to get a particular amount of the sum assured as returns at regular and pre-decided intervals. The benefit of getting money back during intervals is called survival benefit. However, if the insured dies during the duration of the policy, the nomine of the insured gets a death benefit in full and the policy gets terminated.

Benefits of a Money Back Plan:

  • This plan aids the people who want a liquidity to accompany their savings
  • If you buy money back plans, you may even become entitled to get bonuses as declared by the insurer
  • Some of the insurers also allow guaranteed additions that you can gain under some money back plans
  • These plans are available with life cover
  • They offer ready amount of money during emergencies
  • Policyholders can apply for riders at an additional cost of premium to gain additional coverage
  • Further,  the insured can avail tax benefits as per income tax laws

3. Annuity or Pension Plans

Annuity or Pension Plans are meant to make your retired life easy so that you can live life on your own accord.   When it comes to pension plans, you have an array of options to choose from, such as deferred annuity plan or immediate annuity plan.

In case of deferred annuity, you get regular returns after your policy turns a few years old. On the other hand, immediate annuity allows the insured the benefit of regular income/return throughout life. This regular income helps the insured to build a corpus amount for retirement and allow guaranteed returns.

So, what will you get with retirement plans:

  • You will get a lump sum amount at maturity up to a certain pre-specified amount
  • You receive monthly pension through annuity
  • You can use the balance amount to purchase another plan or use for another investment

Benefits of retirement plans:

  • You can earn monetary independence as well as mental peace for your retired life
  • These plans provide comfortable lifestyle during your old age
  • You can accumulate enough wealth for any medical emergency in the future
  • You can retire early by accumulating adequate corpus
  • Further, you can initiate legacy planning and can receive tax benefits as well

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The insurance market offers numerous best life insurance plans with guaranteed returns that you can choose from. You may receive varied policies with benefits like regular payouts or maturity benefits etc. However, you must choose a plan matching your needs after comparing several policies.

Read More: Guaranteed Return Plans and Their Benefits

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Oct 28, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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