5 Tips to decide the Guaranteed Return Plan that fits your requirement

Tips to Choose the Best Guaranteed Return Plan

Below are the 5 tips to consider while choosing a guaranteed return plan

• Consider Financial Goals - Consider your financial goals in the long and short term and make sure that your guaranteed return insurance plan aligns with your financial goals
• Consider Risk Factors - If you are a person who doesn’t want to take risks with your finances, a guaranteed return plan is the best option for you as these are risk-free plans and suits risk-averse individuals aptly
• Consider Lock-in Period - Guaranteed return plans come with a lock-in period of 5 to 30 years, so it helps in ensuring long-term savings
• Consider Fixed Income Option - This is one of the best savings plans that generate fixed income in the long run
• Consider Saving for Retirement - This scheme suits individuals who are looking for a fixed income stream for their retirement so that they can have a peaceful time once they retire
• Consider Family Security - If you want to ensure the financial safety of your family members along with ensuring an assured return on your investment, a guaranteed return plan is the one for you

What Do You Mean by a Guaranteed Return Plan?

As already discussed, the guaranteed return plans help investors save fixed sums regularly over time and ensure guaranteed returns for the future. The investor can also receive customizable returns or payout as per their requirement. For paying the premium, the investor can choose to pay it as a regular amount or as a lump sum amount as feasible. Further, the policy offers security to your family members to avail of the payout as a death benefit in case any untoward situation takes place with life assured.

Hence, the guaranteed return plan is the best option if you want to ensure the safety of your money, and if you want a risk-free investment policy.

What are the Common Features and Benefits of a Guaranteed Return Plan?

Below are some common features of a Guaranteed Return Plan:

• Assured returns: The plan offers assured income over a particular period as a lump sum, short- or long-term payout, or immediate payout to fulfill different needs of the life assured.
• Options in choice of payout/return: The plan offers the investor the option of availing the guaranteed income in different ways such as lump sum amount, long-term or short-term income as well as immediate income.
• Additional benefits to increase maturity: In case the guaranteed return policy is an endowment plan, it further enhances the maturity amount by increasing a percentage of the guaranteed benefit each year to increase the corpus.
• Life insurance coverage: The guaranteed return plan comes with life insurance coverage and it covers the family members of the life-assured in case of any unforeseen situation happening with the life assured.
• Easy premium payment option: With this guaranteed return plan, you get the flexibility to pay your premium amount as a single lump sum amount. You can also choose to pay the amount annually, half-yearly, quarterly, or as a monthly premium payment.

Benefits of Guaranteed Return Plan

Here are some benefits of the Guaranteed Return Plan:

• Assured return: Guaranteed return policies offer a 100% assured return with zero risk on investment
• Maturity benefit: The policy offers guaranteed returns along with a basic reversionary and terminal bonus (if applicable) at the end of the policy
• Death benefit: If the life assured dies during the policy term, the death benefit and all the bonuses as applicable are offered to the nominee or beneficiary
• Add-on rider – The plan also offers optional riders which can be purchased to enhance your policy coverage against certain risks.
• Risk-free investment: A guaranteed return policy allows diversification of investment and ensures risk mitigation to balance your portfolio and investment.

Eligibility Criteria for Guaranteed Return Plans

Below are some eligibility criteria to avail of the Guaranteed Return Plan:

• Entry age (Min.) – 18 years
• Entry age (Max.) – 60 years
• Policy term (Min.) – 5 years
• Policy Term (Max.) - 30 years

5 Best Guaranteed Return Plans in India

Below are the five best-guaranteed return investment plans in India offered by different insurance companies:

1. Tata AIA Life Guaranteed Return Insurance Plan

     This is a guaranteed savings plan that helps the policyholder to save money to meet the major milestones in life.
     This plan offers life insurance coverage along with enhancing your savings to meet different requirements in life.

     Plan highlights:

• The plan offers multiple payout options
• Loan facility available under the plan
• The insured can pay the premium as per convenience with multiple options
• They can avail life cover from day one of policy issuance
• Tax benefits as per the prevailing tax laws are also available
• There are ample add-on riders to enhance the policy coverage

2. LIC Bima Ratna Guaranteed Return Plan

    LIC Bima Ratna Guaranteed Investment and Life Insurance Plan is another best-guaranteed return plan available in
    India.

    Plan highlights:

• Limited premium/short-term money-back plan
• The life assured can pay the premiums for short-term and enjoy life cover for a longer duration
• Guaranteed returns are available at 6% with capital protection of the invested amount
• Enjoy investment plans with tax benefits
• Guaranteed additions are available on maturity or while making a death claim

3. SBI Smart Platina Plus Guaranteed return plan

    This is an individual, non-linked, non-participating life insurance savings plan offering assured returns.

    Plan highlights:

• Regular guaranteed income during the payout period
• Flexible plan that offers options to choose income term, premium payment term, payout period, etc., to suit your life goals
• Financial protection along with tax benefits

4. HDFC Life Guaranteed Income Insurance Plan

    This is a non-linked non-participating individual life insurance savings plan offering guaranteed tax-free benefits
    once the premium payment term is completed. It also offers guaranteed death benefits during the entire policy term.

    Plan highlights:

• Guaranteed long-term income benefits
• Income tax benefits
• Rider benefits
• Guaranteed death benefits
• Loan benefits

5. ICICI guaranteed return insurance plans

    ICICI guaranteed return plan is a low-risk policy that you can rely on to secure your future as well as the future of
    your family members.

    Plan highlights:

• Low-risk plan Not affected by market fluctuations
• Covers family members
• financially Offers stable returns