Guaranteed Return Plans

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A guaranteed return plan (GRP) is a combination of investment and insurance that helps you build wealth and provides protection. It offers a maturity benefit if the policyholder survives the term and a death benefit to your nominee in case of his/her unfortunate demise. This is an endowment plan which makes it a good choice for those seeking guaranteed returns and financial security.

Highlights of a Guaranteed
Return Plan

Dual advantage of investment and life cover
Guaranteed returns
Low-risk investment
Flexible premium payments
Rider benefits

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GRP Everything You Need to Know

Features and Benefits of Guaranteed Return Plan

Long-term savings and insurance

This plan offers long-term savings starting from 5 years and continuing throughout life.

Guaranteed returns

It's a low-risk investment with stable returns despite market fluctuations.

Wealth enhancement

You can increase your corpus with guaranteed additions, loyalty bonuses, or wealth boosters.

Life cover

Provides life insurance protection through death benefits.

Fulfilment of financial goals

Helps achieve goals like buying a home or funding education with maturity benefits, ensuring goals are not affected due to the policyholder’s demise.

Liquidity through loans

Policy loans are available in emergencies, with up to 90% of surrender value accessible.

Flexibility in premium payment

Choose options from annual, half yearly, quarterly, or monthly payments. Tax Benefits Under Guaranteed Return Plan

Tax Benefits Under Guaranteed Return Plan

Tax benefit under Section 80C

Premiums are deductible from your taxable income up to ₹1.5 lakhs or the actual premium paid, whichever is lower.

For guaranteed return plans, however, the maximum deduction allowed is the lowest of the following –  

  • The actual premium paid
  • 10% of the sum assured for plans issued on or after 1st April 201​2​​3​ or 20% of the sum assured for plans issued on or before 31st March 2012
  • ₹1.5 lakhs
Tax benefit under Section 80D

Rider premiums (critical illness, surgical benefit, hospital cash or terminal illness) are deductible up to ₹25,000 or ₹50,000 for senior citizens.

Total Tax Benefit for Premium paid for Self, Spouse and dependent children Total Tax Benefit for Premium paid for dependent parents  Total Tax Benefit
If you are < 60 years of age ₹25,000 0 ₹25,000
If you are < 60 years of age and parents are < 60 years ₹25,000 ₹25,000 ₹50,000
If you are < 60 years of age and parents are > 60 years ₹25,000 ₹50,000 ₹75,000
If you are > 60 years of age and parents are > 60 years ₹25,000 ₹50,000 ₹100,000
Tax benefit under Section 10(10D)

If the premium paid for the investment insurance plan was limited to 10% of the sum assured (20% of the sum assured for policies issued on or before 31st March 2012), the maturity benefit received from the guaranteed return plan would be allowed as a tax-free income in your hands. There is no limit on the limit of exemption. The entire maturity benefit, including ​Click here to enter text.​other additions, would be allowed as a tax-free income.

The death benefit is tax-free

Death benefits are tax-free for nominees/beneficiaries.

How Does a Guaranteed Return Plan Work

When you opt for a guaranteed return plan, you need to decide on:

  • How much you want to invest
  • How long the policy should last
  • How often you will pay premiums (annually, half-yearly, quarterly, or monthly)

Your premium amount will be calculated based on the above choices, your age, and your medical history. In case of your untimely death during the policy period, your beneficiaries will receive the death benefit, which is typically the policy's sum assured along with any promised additions.

If you survive the policy duration, you will get the maturity benefit, usually comprising the sum assured and any guaranteed additions.

Mr. Verma Buys a Guaranteed Return Investment Plan
Mr. Verma
Sum Assured – ₹10 lakhs. Premium are payable annually for the entire duration of the policy The policy tenure – 20 years
The policy tenure – 20 years The policy pays ₹10,000 as guaranteed additions after the first five years of the tenure
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Case 1 – Mr. Verma passes away in the 10th year
His family will receive ₹10,50,000, which includes the sum assured and the accrued guaranteed additions from the 6th to the 10th year which is ₹50,000.
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Case 2 – Mr Verma passes away in the 4th year
Since the guaranteed additions have not started yet, his family gets ₹10 lakhs as the death benefit.
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Case 3 – Mr Verma survives the policy term of 20 years
He receives a maturity benefit of ₹11,50,000, which includes the sum assured and the guaranteed additions earned over the tenure. So, it would be as follows – Sum assured = ₹10 lakhs + Guaranteed additions = ₹10,000 * 15 = ₹1.5 lakhs + Total maturity benefit = ₹11,50,000

Guaranteed Return Plan – Inclusions

What is covered in a Guaranteed Return Plan

Natural death benefit

If the insured’s death occurs due to an accident, injury, or illness during the policy tenure, the nominee receives the death benefit.

Critical illness benefit

Some insurers offer coverage for life-threatening diseases.

Accidental death benefit

Some insurers provide a lump sum amount if death occurs due to an accident.

Loan benefit

Access a loan up to 70-90% of the surrender value.

Guaranteed Return Plan – Exclusions

What is not covered in a Guaranteed Return Plan

If the insured commits suicide within a year of policy purchase, the premiums would be refunded. If the insurer commits suicide within a year of reviving a lapsed policy, there will be no death benefit; however, a higher of 80% of the premiums paid or the acquired surrender value is paid under the plan.

Adventure sports

Death occurred while performing risky activities or dangerous sports is not covered.

What to Look for While Buying and Comparing a GRP

Maturity benefit and death benefit

Check the sum assured for death benefits and projected maturity benefits.

Premium payment term

Ensure flexibility in payment options – single, regular, or limited periods (5, 7 or 10 years).

Premium payment frequency

Choose quarterly, half yearly, or annual payments.


Opt for policies offering diverse optional riders for customised coverage.

Range of riders

Opt for policies offering diverse optional riders for customised coverage.


Check if the payout is lump sum or in instalments.

Added benefits

Look for guaranteed additions or loyalty boosters for higher returns on death or maturity.

Insurer’s reputation

Select a reputable insurer for quality services and other features.

Claim settlement ratio

Consider a high claim settlement ratio for faster and efficient claim processing.

Substance abuse

Death due to alcohol, drugs, or any other intoxicating or banned substances is not covered.

Criminal activity

Death due to a criminal act is excluded.


Claim will be rejected for hiding or misrepresenting critical information.

Fraudulent claims

Not included under the plan.

Death due to pre-existing medical conditions that are not disclosed

Death from undisclosed pre-existing conditions may not be covered.

Factors Affecting the Premium of Guaranteed Return Plan


Younger individuals generally have lower premiums due to lower health risks.


Some policies charge lower premiums for women than men.

Policy term

Longer terms may have higher premiums but offer better benefits.

Premium payment term

Choosing a shorter premium payment term means you will pay a higher annual premium compared to longer terms. This is noticeable when aiming for a specific target amount or investment goal.

Sum assured

More coverage means a higher premium since it also raises the risk for insurers.

Premium paying frequency

You can opt for monthly, quarterly, half-yearly or annual payments. Monthly payments cost more because they involve more administrative tasks and incur higher expenses for the insurer.


Premiums increase on addition or one or more riders.

Guaranteed Return for a Secured Future

*The disclaimer text for RoR come here

Compare plans from top insurance companies to get

₹39.8 L*

*The maturity amount can be higher in plans that offer a rate of interest that can go as as hight 19% in 10 years

₹12 L

Most investment plans offer in-built life-cover to nominee in case of insurer’s death during policy term

Riders under the Guaranteed Return Plan

Accidental Death and Disablement Benefit Rider

If the insured suffers accidental death or disablement during the policy tenure, they will get an additional lump sum benefit.

Critical Illness Rider

This rider covers critical ailments and treatments. In case you are diagnosed with any and survive the stipulated period, the sum insured is paid as a lump sum.

Terminal Illness Rider

If the insured is diagnosed with a terminal illness, the sum insured is paid earlier for treatment fully or partly.

Premium Waiver Rider

This rider waives off the premiums if the insured dies or becomes disabled during the policy tenure. The plan remains active without premium payments.

Endowment Vs. Money Back Policy


Money Back Policy 

Endowment Plan 


Serves as both investment and insurance plans. The insured receives a certain percentage of the sum assured on a regular basis. Serves as insurance plus investment plans. The insured receives the sum assured and terminal bonus at the end of the policy period if he/she outlives the duration of the policy. However, if the policyholder’s death occurs during the term of the policy, the nominee receives the death benefit.

Policy duration

5-25 years 10-35 years

Key benefits

The sum assured percentage is paid to the insured at regular intervals. The sum assured is paid to the insured as a lump sum amount along with a maturity benefit.

Loan service

NA The insured can get a loan by using the plan as security.

Endowment Plan Vs. Term Insurance

Endowment Plan  Term Insurance 
Combined benefit of insurance coverage plus savings. Pure life insurance plans. They protect the nominee of the insured in case of their death during the policy period.
Premium rates are higher as they include maturity benefit. Premium rates are lower as they offer only death benefit.
They do not offer a higher sum assured. They offer a higher sum assured.

Endowment Plan Vs. ULIP

Endowment Plan  Unit Linked Endowment Plan 
These are insurance plus savings plans. These are insurance plus investment plans.
The lock-in period of endowment is normally 2-3 years. The lock-in period of ULIPs is normally 5 years.
These policies lack transparency. These policies can be tracked easily for the entire investment portfolio.
The insured receives some amount at maturity. The insured is allowed to gain investment returns at maturity.
The insured cannot change the policy or switch to another policy. The insured can make free switches of funds.

How to Buy Money Back Policy at Paybima 

Share personal details

Input basic details along with age, coverage amount, health details, etc. to begin the policy procedure.

Browse policies

Check the various plans offered by different insurance companies and shortlist the plans.

Compare shortlisted policies

Once you’ve shortlisted 2-3 policies that suit your requirements, compare them online.

Add riders

Select the appropriate riders or add-ons to the policy for additional cover.

Complete and review the proposal form

Enter proposer details for cKYC, medical information and nominee details.

Make payment

Pay for the policy online using credit/debit cards, UPI, wallets, or net banking.

Document upload

Provide documents for ID proofs, address proof and salary proof.

Medical examination

Some insurance companies conduct medical examinations before issuing the policy.

Get the policy

The proposal is submitted to the insurance company for approval. Once approved, they’ll receive the policy by email.

Simple Steps and Assistance for buying Guaranteed Return Plan

At Paybima, buying a Life insurance plan is easy and you can opt for an advisor’s help anytime.

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Benefits of Guaranteed Return Plans

Guaranteed return plans offer several benefits, making them a popular choice for individuals looking for financial security and stable returns:

Financial security

These plans provide a secure financial backup for you and your loved ones, ensuring their well-being in the future

Stable Returns

Guaranteed return plans offer regular returns with low risk, providing a reliable source of income over a specified period

Insurance Coverage

Along with financial returns, these plans come with life insurance coverage, ensuring that your family is financially protected in case of any unfortunate event

Tax Benefits

Premium paid for guaranteed return plans are eligible for tax deductions under Section80C, and the maturity amount is tax-free subject to certain conditions

Flexible Options

Investors can choose from various income options such as lump sum payments, fixed monthly or yearly income, and additional benefits like optional riders to enhance coverage

Long-Term Wealth Creation

Ideal for long-term wealth creation and financial protection, these plans strike a balance between savings and guaranteed returns.

Before investing in a guaranteed return plan, consider factors such as your financial goals, risk tolerance, and the policy terms to align the plan with your specific needs

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Under this plan option, policyholders pay premiums for 5, 6, 7, 8, 10 or 12 years (PPT) and choose to receive Guaranteed Income for 5, 7 or 10 years. The policy term is PPT+1 and the life cover is available for the entire policy term.

Under this plan option, policyholders pay premiums for 6, 7, 8, 10 or 12 years (PPT) and receive regular income from 2nd year onwards. The policy term is PPT+1 and the life cover is available for the entire policy term.


Guaranteed Early Income: The income received from 2nd year onwards till the end of the policy term

Guaranteed Income: The income received after the policy term

If the life assured (the person whose life is covered by this policy) passes away, during the term of the policy, the insurance cover amount will be paid out as a lump sum to the claimant (the person specified as the nominee in the policy).

Life insurance benefit is the highest of:

  1. Sum assured on death
  2. 105% of total premiums paid up to the date of death
  3. Annual guaranteed income x death benefit factor for early income plan option, where,

sum assured on death is 10 x annualised premium

In case of death of the life assured during the income period, the claimant will continue to receive the income. The claimant shall have an option to receive the future income as a lump sum.

Under this plan option, the policyholder pays premiums for a certain period of time and at the end of the policy term, they receive a guaranteed payout as a lump sum.

"As a policyholder, you can choose:

> The premium payment term - the number of years for which they have to pay premiums

> The policy term: the number of years after which they want to receive the guaranteed lump sum"

A savings plan is a life insurance plan that provides an avenue for savings for important life goals and a basic life cover to support the family financially. The life cover will provide financial security to the family and ensure a steady source of income in the absence of the life assured so that their lifestyle is not compromised.

Riders are add-on benefits that can be attached to a life insurance plan at a nominal cost. These riders offer multiple benefits such as coverage against accidental death, disability, critical & terminal illness etc.

The claim settlement ratio is referred to as the number of claims that have been passed by an insurance company. It is the ratio of the number of claims settled by an insurer to the number of claims filed in a given period.

A guaranteed return insurance plan is a savings plan that allows people to accumulate a savings corpus over the policy term, along with a basic life cover. When the policy matures, they can choose to receive the guaranteed benefits of the plan, which is the accumulated financial corpus in the form of a guaranteed income for an income period of their choice. Additionally, in case of their unfortunate demise, the family receives the death benefit.

A savings insurance plan provides an avenue for disciplined savings with guaranteed savings benefits to plan for important life goals. In addition, savings plans come with a basic life cover which ensures financial support to the loved ones, in their absence.

If a policyholder misses out on paying the premium on time within the grace period, the policy will lapse and no benefits will be payable to the policyholder.

The maturity benefit in a guaranteed return plan is the money/funds saved over the policy term that has been paid in the form of premiums. This amount can either be paid out as a lump sum benefit or as a regular income once the policy matures.