Life is different for everyone. Yet, milestones across various life stages are quite common for all of us. First job, buying a home, getting married, becoming a parent, retirement, and what have you! One significant task common to all is the financial planning and investments we make. Usually, we seek investment options that protect these pre-determined milestones of life. Before words like ‘financial planning’, ‘SIPs’, ‘investments’ became buzz words, the Indian mindset only focused on saving money. Fixed deposits were one of the more popular instruments. Rightly so. They came with a guarantee.
Of course, now declining rates have deprived them of their popularity. While modern financial whizzes may not have fixed deposits as their go-to option for savings, they do applaud the guarantee they come with. So, what do you do when you want to park your funds in tools other than fixed deposits, and yet expect guaranteed returns? The answer is simple. You must invest in guaranteed returns life insurance plans.
What are guaranteed returns insurance plans?
Guaranteed returns insurance plans help you to achieve all your financial goals. They also enable your loved ones to live life without any hiccups, in the unfortunate event of you not being around. These plans are risk-averse, and along with the benefits of traditional insurance plans, guaranteed returns insurance plans also offer maturity benefits and an opportunity to create steady income in the future.
One plan, multiple benefits
A guaranteed returns insurance plan provides multiple benefits such as the assurance of a fixed and expected return on investment, financial security and peace of mind. We’ve detailed these so that you can see how they can benefit your asset portfolio.
COVID-19 taught us a valuable lesson in insurance. Many families lost a loved one, in many cases the breadwinner. This left several families grappling with grief and the added burden of managing finances in the absence of the sole earning member. You don’t want your loved ones to ever be in such a difficult situation. You want to protect them all the time just like the quintessential film hero or heroine. In the unfortunate event of the policyholder's death, a guaranteed returns insurance plan ensures that the policyholder's family receives the guaranteed sum assured, providing financial stability and support during challenging times. Some plans also come with rider benefits such as accidental death benefits, hospital cash rider benefits, and others.
Often when we check the rate of returns for an investment, we don’t account for the rate of inflation. That is a mistake. Let us explain. Do you remember how much you paid for a liter of toned milk in 1999? You paid ₹10.00. Today you pay five times that price. This is the reality of inflation. Ergo when we are checking the rate of return for any investment, we must account for inflation. While guaranteed returns life insurance plans may not offer the same rate of returns as equities, they do offer competitive returns along with life coverage. This earns the guaranteed returns life insurance plans a mention as a high-returns tool.
Like every other insurance plan, a guaranteed returns plan also comes with relevant tax benefits that may be available on premiums paid and benefits receivable as per prevailing Income Tax Laws.
Debts cease to become tools of worry
Every breadwinner wants his or her family to be able to live comfortably even in their absence. This is possible if there is a steady stream of income. Pursuing higher education, marriages, paying off debts (if any) and so on are typical examples of expenditures that could cause concern if not planned properly. A guaranteed returns plan will ensure that your family is able to live comfortably without worrying about such expenses.
Insulation against volatile market conditions
Rising inflation, global recessionary trends, war, rising fuel prices, and other factors contribute to market volatility. When you want to restrict exposure of your investments to market risks, guaranteed returns insurance plans are the answer. Now, how much of your money you want to invest in these is a separate discussion altogether.
When you plan your investment portfolio, including a guaranteed returns insurance plan makes good sense. There is an abundance of options to choose from but the best guaranteed return plan in India is the IndiaFirst Life Guarantee of Life Dreams Plan. This plan offers a range of income options. Another distinctive benefit of this plan is that you have the option to get a regular increase in income from the end of first policy month, helping you tremendously to achieve your financial goals in addition to providing a life cover.
Protecting our family and planning for a comfortable life is important for all of us. Therefore, there is a need for an assurance of a stable income, without having to invest in complex financial tools which could be difficult to comprehend. That is why guaranteed returns insurance plans score. They are simple, they promise well with the Indian mindset of saving, grant insurance coverage, and offer higher returns with tax benefits.
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