Why Should You Invest in a Guaranteed Return Plan?

Planning for the future comes naturally to most human beings. And most people wish to have a fixed source of income so that tomorrow even if they are in need of money, they do not have to depend on others.

Why Should You Invest in a Guaranteed Return Plan?

Security for the family

Being a life insurance plan, in case of the death of the insured member during the term of the policy, the appointed nominee would receive the death benefit. Along with the death benefit, there are also additions and bonuses that may be paid out, if acquired.

It comes with a maturity benefit

In case the insured member survives or outlives the term of the plan, he then receives a maturity amount. The maturity benefit is the total of the sum assured along with the additions and bonuses if acquired.

Your financial goals will be on track

Be it saving for your retirement, or a suitable second source of income or planning your child’s dream wedding, or starting a business, whatever your financial goals may be, your guaranteed return plan will create a corpus for you that you can utilize at a later stage in life.

You can save on taxes

While saving for the future, you are also eligible for tax benefits, let us take a look at the different sections under which the benefits can be availed:

– In case you opt for riders along with your policy, you can avail deductions up to INR 50,000 under Section 80D

– The premiums that you pay towards the plan is allowed as a deduction, up to INR 1.5 lakhs under Section 80C

– The entire maturity amount is taken as a tax-free income under Section 10(10D)

– The death benefit received is also tax-free

You can choose a term that suits you

A guaranteed return insurance plan allows you the flexibility to select a premium payment frequency that you are comfortable with. On the basis of your financial requirements, you can pay throughout the term of the plan or for a limited period.

Riders can help in enhancing the cover

Under endowment assurance plans you can add riders to your plan by paying an extra premium. Riders such as the following can help in increasing the coverage to a much greater extent:

– Terminal Illness Benefit Rider

– Term Rider

– Accidental death and      disablement benefit Rider

– Premium Waiver Rider

– Hospitals cash Rider

You are eligible for loans

With guaranteed return insurance plans, you also become eligible for liquidity in the form of loans. Once your plan acquires a surrender value, you can ask for a loan of up to 90% of the collected corpus. In your need of financial help, you will receive the money instantly.

Offers you peace of mind

A big majority of investors like to keep their money in safe and secure investment options. They wish to stay away from the roller coasters of the capital market. If you are such  an investor who has a low-risk appetite, investing in a guaranteed return insurance plan will offer you returns without the fear of losing your money.  Market fluctuations will not bother you and you will not lose your peace of mind.

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