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Everything about the Guaranteed Returns Plan
When it comes to ensuring a financially secure future, a Guaranteed Returns Plan holds a significant place in the realm of investments. It provides stability in an unpredictable financial world.
A good choice for risk-averse individuals, Guaranteed Returns Plan ensures that your hard-earned money multiplies, protected from the ups and downs of market volatility.
What is Guaranteed Returns Plan?
A Guaranteed Returns Plan is an insurance product that provides a guaranteed rate of return on an investment over a certain period. It offers dual benefit of insurance coverage and investment. It provides the policyholders with a guaranteed sum at maturity, regardless of market fluctuations.
By offering stability, reliability and an unwavering commitment to growth, a Guaranteed Returns Plan becomes an indispensable tool for individuals seeking an investment to nurture their wealth and achieve their financial aspirations.
How Does Guaranteed Returns Plan Work?
In a Guaranteed Returns Plan, the premium you contribute over a specific duration offers dual advantages.
A portion of the premium contributes towards building a corpus and the other portion provides life coverage. At the end of the policy tenure, you receive a guaranteed maturity amount if you survive the policy term.
In case of your unfortunate death during the term, the nominee receives the sum assured.
Why Invest in Guaranteed Returns Plan?
Investing in a Guaranteed Returns Plan offers a host of benefits that align particularly well with risk-averse investors. This plan provides an attractive balance between risk and reward, assuring a guaranteed sum at maturity.
Here are some of the top reasons to buy a guaranteed returns plan:
To Meet Future Financial Goals
Whether it's funding your child's education, purchasing a dream home or embarking on a memorable retirement journey, the consistent and assured returns of this plan serve as a robust foundation to achieve these future milestones. The certainty of returns ensures that your goals remain firmly within your grasp, allowing you to plan with confidence and chart a stable path towards your envisioned future.
To Provide Coverage to Your Family
Life's unpredictability highlights the necessity for comprehensive financial protection for your loved ones. A Guaranteed Returns Plan not only offers you a secure avenue for wealth creation but also acts as a safety net for your family's well-being. In the unfortunate event of your absence, the death benefit ensures that your family is financially protected.
To Safeguard Your Corpus
Amidst economic fluctuations and market uncertainties, a Guaranteed Returns Plan stands as a devoted guardian of your hard-earned money. The predictable and fixed returns not only preserve your initial investment but also compound it over time.
Why Guaranteed Returns Plan is More Reliable?
Benefits of Guaranteed Returns Plan
Investing in a Guaranteed Return Investment Plan is your step towards building a solid financial foundation.
Let’s see the key steps to take while buying a Guaranteed Returns Plan:
Understand Your Goals
Before getting to the buying process, clearly define your financial goals. Whether you're planning for your child's higher education, your retirement, or just for an assured investment, a well-defined financial goal better guides your buying decision.
Decide Your Coverage
Evaluate the coverage amount you require to fulfil your financial objectives. Consider factors such as inflation, lifestyle needs, and existing insurance coverage to arrive at an optimal coverage amount.
Compare Plans
Check Out Plans with Optimal Benefits and High Coverage. Explore the array of Guaranteed Return Investment Plans available in the market. Look for plans that not only offer attractive guaranteed returns but also provide high coverage to ensure financial protection. Also, check if you can add riders and enhance your coverage or customise your plan.
Complete the Formalities
Once you've identified the ideal Guaranteed Return Investment Plan, gather all necessary documents. Ensure that you meet the plan's eligibility criteria and complete the required formalities.
Buy the Plan
With your documentation in place, initiate the application process as per your insurance provider. Ensure that you carefully review the terms and conditions before finalizing the purchase.
Factors to Consider While Buying a Guaranteed Returns Plan
Purchasing a Guaranteed Return Plan necessitates a comprehensive evaluation of critical factors to ensure that your investment aligns with your financial goals.
Let’s see the key considerations that would empower you to make an informed decision while buying a Guaranteed Returns Plan:
1. Financial Goals
Your financial goals must be the primary guide for your investment choices. Determine whether the Guaranteed Return Plan you're considering fulfils your short-term or long-term goals.2. Returns on Investment
Carefully review the rate of returns offered over the policy tenure. Check the history of the plan, what returns has it provided in the past. A clear understanding of the projected earnings enables you to judge the potential growth of your investment.3. Policy Tenure
The policy tenure significantly impacts your investment journey. Check whether the plan's tenure aligns with your goals timeline. Longer tenures may offer better returns, while shorter tenures could be ideal for specific needs.4. Coverage Amount
The insurance provider evaluates the claim to determine its validity and eligibility for coverage. If approved, the outstanding loan balance is paid off, either partially or in full, depending on the terms of the plan. This relieves the borrower from the obligation of loan repayment and protects the lender from financial loss.5. Tax Benefits
Explore the tax benefits associated with the plan. Understand the extent to which premiums paid and maturity proceeds are eligible for tax deductions as per the prevailing tax laws. Optimise your savings accordingly.6. The Insurance Company
Research your insurer's track record, customer service, and claim settlement ratio. A reliable and trustworthy insurance provider instils confidence in the security and reliability of your investment. In this digital age, check if your insurer’s processes are digital and hassle free.Who Should Buy Guaranteed Return Investment Plans?
Guaranteed Return Investment Plans hold immense appeal across various life stages and financial profiles. These plans cater to a diverse range of individuals seeking an assured avenue for wealth creation and protection.
While anyone who fulfils the criteria can buy a guaranteed return plan, the following customer segments are most suited for the same:
Parents
For parents, ensuring a secure future for their children is a paramount concern. Guaranteed Return Investment Plans serve as an ideal option to build a corpus that can be utilized for a child's education, higher studies, or other essential needs.
Young Professionals
Young professionals who have just embarked on their professional journey should consider investing in Guaranteed Return Investment Plans to establish a solid financial foundation. They have more time for their long-term goals and hence more tenure for compounding of returns.
Newly Weds
Newlyweds have some financial aspirations that can be well met with a guaranteed returns plan. These plans provide a structured approach to building wealth, ensuring that financial goals such as buying a home, starting a family, or traveling the world are well within reach.
Working Women
Working women play multifaceted roles and often juggle various responsibilities. Guaranteed Return Investment Plans offer them a reliable means to manage their finances efficiently. These plans provide a balanced blend of growth and protection, empowering working women to secure their financial independence and pursue their aspirations with confidence.
Taxpayers
Guaranteed Return Plans offer double tax benefit. Their premium is exempt under 80C tax deduction and the payout falls under 10 (10D) and is exempt as per the prevailing tax laws.
A Guaranteed Returns Plan emerges as a beacon of financial security and stability in the world of investments. It ensures not just growth of your hard-earned money but also offers financial protection.
This combination of savings and insurance, the reliability of assured returns and the flexibility to cater to diverse aspirations make this plan a smart choice for those seeking a steady financial future. Choose wisely, invest diligently and embrace a secure financial journey that provides prosperity and peace of mind.
FAQs about Guaranteed Returns Plan
Can a Guaranteed Returns Plan be Surrendered Before Maturity?
Is the Maturity Amount Guaranteed in a Guaranteed Returns Plan?
Are Guaranteed Returns Plans Suitable for Retirement Planning?
Can I Take a Loan Against a Guaranteed Returns Plan?
Is the Premium Amount Fixed Throughout the Policy Tenure?
Other Important Articles Related to Guaranteed Returns Plan
Disclaimer
- This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
- All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
- Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.