Insurance makes sense only when it assures guaranteed returns to the investor for the lifetime and beyond. A guaranteed return plan promises just that. Here are a few tips to keep in mind though before investing in one.

Things to consider before going for a GIP

Guaranteed Return Insurance Plan: Meaning

In simple words, a guaranteed return insurance plan refers to a life insurance plan that assures guaranteed returns to the investor throughout the term of the policy and even beyond it. This means that after the policyholder has outlived the plan tenure, they would still keep receiving monetary benefits from a guaranteed plan.

4 Key Features of a Guaranteed Income Insurance Plan

Here are some of the basic features of a guaranteed return insurance plan:

1. It offers the dual benefit of savings and     insurance to the investor.

2. It allows the investor to choose the term of the      plan as well as the rate of premium that they      can comfortably afford throughout the policy      tenure.

3. The plan returns a lump sum amount to the       investor at the end of the policy term. There is       also the option of availing returns in       installments over a regular specified time       duration.

4. Owing to their guaranteed income feature,       these plans are most beneficial for life after       retirement.

Top 3 Benefits of Availing a Guaranteed Return Policy

We learned above the key features of a guaranteed return plan. Now let us look at some of the major advantages of choosing these plans:

1. Guaranteed return plans are considered to be     one of the most flexible and dependable     financial products promising fixed     guaranteed returns.

2. With regular and guaranteed savings coming in      as part of the plan, the policyholder is able to      build a decent corpus of wealth for use in the      future.

3. Guaranteed return plans work on a stable      financial model that facilitates consistent      savings since there is always a guaranteed      amount of money flowing into the plan.

5 Things to Consider Before Going for a GIP

Here are a few key tips to keep in mind for ensuring safe investment in guaranteed return plans:

- Make your insurer aware of your long-term financial goals. It is important for them to understand what your financial goals are for the future. This would include the financial goals of your family as well.

- Make sure that you choose an insurance company that understands your financial requirements and goals so that they can help you choose an appropriate plan accordingly.

- Make sure to buy rider benefits on your plan. A plan with rider benefits is always helpful since your financial needs are bound to change over time.

- Make sure that the best guaranteed return plan that you buy offers ample tax benefits to enjoy.

- Make sure that your plan offers some extra benefits such as annual or loyalty bonus on the policy which is available to the policyholder in case they opt for longer-term plans.

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