2-August-2021 |

When investing in instruments linked to the stock market, there is always an element of risk. Based on the market fluctuations, the instrument you’ve invested in will earn or lose money. Given the current situation, everyone needs to be prepared to withstand market volatility. But as the markets yo-yo between the red and black lines, how do you ensure that your financial goals and personal dreams are fulfilled? To protect yourself from the volatility of market performances, it is prudent to invest in guaranteed1 return insurance plans.


The guaranteed1 return insurance plan is a unique combination of a savings plan and life insurance that will enable you to save for the milestones you want to achieve in life. Guaranteed1 return plans offer you the benefits of insurance coverage with a savings component. Your well-defined life goals will be adequately protected at every stage of life without you having to compromise on your basic needs. A guaranteedInsurance plan will help you reach your medium- and long-term goals such as marriage, buying a home, children’s education, retirement, etc. Guaranteed1 payouts eliminate the effects of market uncertainties on your investments. Therefore, they help you meet future requirements while providing protection and financial security for your loved ones.


It is important to study the benefits of the guaranteed1 insurance plan to understand whether it works for you as an investment instrument. The benefits of the plan are:


Guaranteed1 Returns


The primary purpose of these plans is to ensure guaranteed1returns. These plans are independent of the market, i.e., market fluctuations will not determine whether you will receive these returns. Depending on which company’s guarantee1 insurance plans you invest in, you may even be offered the flexibility to choose between a lump-sum payment or you can opt for regular income. As an investor, you will receive a guaranteed1 maturity benefit or death benefit with accrued guaranteed1 additions.


The Flexibility of a Guaranteed1 Return Plan


With time, your life and financial goals will evolve. Planning for a combination of unknown financial requirements and life’s uncertainties is a challenge. To counter this, you can opt for a guaranteed1 return plan that offers you the flexibility to select the income period, the frequency of income, and the type of income you receive. For example, you can invest in a plan that offers you the option to receive regular income or regular income with an in-built critical illness benefit, including an option to receive this income monthly or annually for a period of 20-45 years. Such plans will be based on your requirements. The flexibility of such guaranteed return insurance plans provides a buffer against unexpected expenses.


Flexible Premium Payments


Many guaranteed1 return insurance plans offer flexible premium payment options. You can choose to pay premiums for single and limited periods. You can even pay them annually, semi-annually, quarterly, or monthly, based on your financial status and the guaranteed1 return insurance plan you invest in.


Combination of Savings & Protection


As a savings plan, the guaranteed1 return insurance plan is a wise option that allows you to save for your life goals. Additionally, all guaranteed1 return plans in India offer insurance coverage for the protection of your loved ones. Some plans even offer coverage for spouses. By investing in a guaranteed1 return insurance plan, you can ensure your life goals are met and your loved ones’ financial future is secured.


Affordable Investment Instrument


The guaranteed1 return insurance plan is an affordable investment instrument for investors looking to minimize the risk with guaranteed1 returns. The minimum investment for these plans usually starts low, making them an affordable alternative to save for your dreams and your family’s secure financial future.


Extra Protection with Riders#


The guaranteed1 return insurance plans allow you to avail of enhanced protection through optional riders. Riders such as waiver of premium, critical illness, disability riders, accidental death, dismemberment, etc., when added to your plan, boost the protection of your coverage. The purpose of these riders is to support you financially through hardships like critical illnesses or disabilities.


Loan Facility


Several plans offer you the option to avail of a loan against your guarantee return policy. In case of a financial crunch, the plan can be your savior, where you are eligible to take a loan that helps you meet your financial requirements.


Tax* Benefits


We always look for investment instruments that are not taxed heavily or offer tax benefits. The guaranteed1 returns insurance plan is one such investment instrument. Under Section 80 (C) of the Income Tax Act 1961, your premiums are exempt up to ₹ 150,000. The maturity amount is also exempted from tax under Section 10 (10D).


The benefits of the guaranteed1 return insurance plan are manifold. Plans like the Tata AIA Life Insurance Guaranteed Return Insurance Plan (UIN:110N152V07) offer the flexibility to choose from three different plan options - the endowment plan, regular income plan, and the whole life income plan. Each plan has specific features that could offer you additional benefits based on your financial standing, life goals, and your family’s needs.


You can also checkout the Tata AIA Life Insurance Fortune Guarantee Plus (UIN: 110N158V02) is a flexible long-term savings insurance policy that offers guaranteed1 returns. It can be treated as an insurance-cum-savings plan that offers the dual benefits of life cover along with assured returns on investments. The policy also ensures the return of the premium amount paid after maturity.


With guaranteed1 return insurance plans that take care of your future and your loved ones, you won’t need to track market performance and worry about the fluctuations. Especially for investors who are nervous about taking more risks but still want to invest and save for a brighter future, guaranteed1 insurance plans are the best choice for them. The minimum age of investing in a plan varies from 0 to 45, giving you multiple opportunities to make this investment instrument a part of your portfolio. The guaranteed1 return insurance plans enable you to dream freely, knowing that in time, they will be a reality.


Need help to choose the right plan?


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  • Insurance cover is available under the product.
  • The products are underwritten by Tata AIA Life Insurance Company Ltd. 
  • The plans are not a guaranteed issuance plan and it will be subject to Company’s underwriting and acceptance.
  • For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.
  • *Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you
  • 1Guaranteed Returns/Payouts depend on Plan Option, Policy Term, Premium Payment Term and Age at entry
  • #Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums, and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch