Dreams conquer your mind and body at different stages in your life. They add value to your existence and extend the benefits to your future if planned well. However, turning dreams into reality requires focus, finance and perseverance.

Out of the three, finance is the most important aspect that can relate you more to the dream, set your focus strong and let you persevere for the long term benefit. Therefore, choosing the right financial support becomes extremely necessary.

Have you been introduced to guaranteed¹ return insurance plans in India? It is the apt financial instrument to save money for your dreams and stay insured for protecting your family's financial needs simultaneously.
 

What are Guaranteed¹ Return Plans?
 

A guaranteed¹ return plan is a savings plan introduced by the insurance providers in India to provide dual benefits, namely insurance and savings. The plan provides a life cover that ensures a sum assured to your nominee in case of your unexpected death during the policy term.

After the premium term, the guaranteed¹ returns are made as payouts under the policy. As the returns on maturity are known at the time of inception, it is an ideal plan to prepare for future financial needs.

Flexibility is an inherent feature of such savings insurance plans.

Additionally, the savings insurance plan has the following features.
 

1. Payout: There are different payout options available under a savings policy. Thus, you can receive the maturity benefit as a lump sum, a periodic income or a combination of the two. You can also use the return of premium² option to get a refund of the premium amount paid at the end of the income period.
2. Tax^* benefits: The premium paid on life insurance with returns plan is eligible for tax* deduction,  and the death benefit is exempted too under the Income Tax Act, 1961.
    

How Guaranteed¹ Return Plans can Help You Achieve Your Dreams  
 

Now that we have seen the basic features of a guaranteed¹ return plan, here are a few situations in which they can be quite useful.
 

1. Higher education - If you dream of studying further on a specialized course or wish to pursue higher education in a foreign university, you must plan for it a few years early. You can invest in a life insurance savings plan from your current earnings so that you have the amount required for tuition fees and other expenses related to the course by the time you choose to get admission.
    

   According to the institution's timeline, the plan's lump sum or periodic payouts can help you pay for the course entirely. With the flexibility to invest regularly, you benefit from less financial stress to accumulate the required funds in the longer term.
    

2. Starting a new business - If you desire to start a new business ten years from now, you can invest and opt for the money saving plan. With this plan, you can make periodic premium amount payments for a larger fund in the long term and start receiving regular payouts or income when the plan matures.
    

   It can also serve as additional financial support as the income from the business may be uncertain in the initial phases. While opting for the regular income plan, you can decide on the income period and set it for a specific number of years or your whole life.
    

3. Increasing your asset base - If you dream of building your own house or purchasing a brand new car a few years later, loans can support you for the major portion of the fund necessary for the establishment.
    

   However, it is important to organize your income for the initial funding required and the regular repayment of the instalments. With a regular income plan, you can make way for the monthly instalments without affecting your current expenses.
    

4. Child’s education - Your child’s education is certainly a priority. With the increase in inflation rates, you have to plan for the tuition fees and the related expenses based on the chosen educational institutions.
    

   As the returns are guaranteed¹ in the savings insurance plan, you can save the amount required to pay for the tuition fees precisely. It will reduce your financial burden and ensure quality education for your children simultaneously.
    

5. Donations - Working and contributing to the cause of social service organizations will certainly be a dream for many people. However, with the increase in family responsibilities, making such donations will become a difficult dream that may not be achievable in the longer term.
    

   With the guaranteed¹ return plans, you can save the fund required to make such donations and get satisfied with accomplishing your dream.
    

6. Retirement - Retirement is an important goal in your life. If you wish for a peaceful retirement without financial inconsistencies, then the savings plan is certainly an ideal choice. With a guaranteed¹ return plan, you can account for the current finances for repaying your debts, paying utility bills during your retirement life and saving for other uncertain expenses such as hospital expenses.
    

   Also, the life cover benefits are extended by providing add-on rider^# benefits such as the total and permanent disability rider^#, critical illness rider^#, accidental death benefit rider^#, etc. These rider^# options provide the insured amount during the policy term to handle the financial obligations that might arise if you encounter any disability or illness covered by the riders^#. It will certainly preserve your retirement funds.
    

Based on your dreams and current financial status, you can make a detailed financial plan and save in the savings insurance product. It will organize your income for saving regularly and help you achieve your dreams as desired. It is important to account for inflation while making the financial plan to ascertain the guaranteed¹ returns.
 

Conclusion
 

A guaranteed¹ return insurance plan is a complete life insurance plan that can provide a life cover and guaranteed¹ returns. Therefore, it provides an option for you to save a lump sum amount in the long term for accomplishing your dreams. It will help you accumulate a larger sum by investing a smaller amount monthly based on your steady flow income and convenience.
 

Based on the amount needed to fuel your dreams, you can decide the premium, policy term and maturity benefit. Make use of the features, purchase a savings insurance plan, stay invested and bring your dreams to reality!
 

L&C/Advt/2023/Jan/0295