Investing in financial instruments to secure your future and accomplish money goals is an important objective in life. It is needed to fulfil family obligations and explore your interests. There are different types of investment avenues.
 

However, life cover and savings are important any day! And if you are the sole earning member in the family, then it is an ultimate necessity. So, let's get started and discuss five features that explain the relevance of this plan.
 

What is a Guaranteed¹ Return Plan?

This is a life insurance plan that provides a life cover and guaranteed¹ returns on maturity. It is a good savings benefit plan that helps you prepare for your future money goals. The flexible payout and premium payment options help you customise the plan based on your needs. There  is also additional rider^# options that extend the protection cover.
 

Features of a Guaranteed¹ Return Plan

1. Guaranteed¹ returns - The guaranteed¹ return policy is a life insurance comprehensive plan that provides guaranteed¹ returns on maturity. The quantum of returns is decided during the policy inception. Therefore, as the returns are guaranteed¹, you can plan your future money goals with assurance.
   
   For instance, if you plan to purchase a new house after ten years, you can now invest in a guaranteed¹ return plan for a lump sum to be paid as the down payment. The extent of returns will be based on the type of investment. If you expect a huge lump sum, then you have to choose a longer policy term for the plan to be affordable. The longer the investment is made, the apt the returns are! Also, as the returns are not market-linked, it is secure in your hands. Therefore, the premium you pay is sorted as a savings benefit for your future.
   
   
2. Life cover - The guaranteed¹ return insurance plan includes life cover while providing the savings benefit. It provides the lump sum death benefit to your loved ones in case of your unexpected death. You can also include the life cover for your spouse as part of the same plan and extend it as a joint life insurance plan. If you have planned to have children, you must secure your life for the benefit of your children in case of unprecedented situations.
   
   
3. Rider^# options - Apart from providing the life cover, the plan provides additional rider^# options for financial assistance to manage unprecedented scenarios.
   
   For example, we provide the comprehensive rider^# to enhance the risk cover by offering accidental death benefit, waiver of premium in case of total and permanent disability, etc. The comprehensive health rider^# will provide financial support to manage hospitalisation and other medical expenses to treat critical illnesses, major and minor injuries during the policy term. The list of critical illnesses covered under the policy will be provided to you as a reference. Suppose your family has a history of getting affected due to an illness. In such cases, you can always opt for such rider^# options as a precaution.



4. Flexibility - The plan in India provide flexible features to the policyholders to help them benefit maximally. Our plan offers flexible payout options.
   
   
   • Endowment - The guaranteed¹ return will be provided to you as a maturity benefit. It will be made as a lump sum payment. You can utilise this option to plan a vacation, pay for your tuition fees for higher education abroad, start a new business, etc.
   
   
   • Regular income - The return will be provided to you as a regular income for a fixed period. You can choose the income period based on your preference. This option will be ideal for people starting a new business and cannot expect a steady income until the business stabilises. It can also be used by research scholars or others taking a sabbatical leave as a break to experiment on a new project or a course.
   
   
   • Whole life-income - The return will be provided to you regularly for your whole life until death. It is a preferred option if you have to lead your retirement life independently. Retirement is a golden period in your life. If you have your spouse and dependent parents at home, you have to ascertain a regular income for their survival until your death. And, if you have the ambition to pursue a hobby or business of your choice, it will be an additional income to support you.
     
     Apart from the payout options, there is also the flexibility to pay the premium as per your preferences. You can choose a limited premium payment term while ensuring the benefits through the policy term. You can make the premium payments monthly, quarterly, semi-annual, or annually.
   
   
   
5. Tax* benefit - Tax* liability is a concern for every individual earning an income after hard work. However, your investments in the guaranteed¹ return plan qualify for a tax* deduction up to ₹1,50,000 under Section 80C on the premium payment made annually on the taxable income. Also, the returns from the policy get exempted under Section 10(10D) of the Income Tax Act.

Conclusion

Life introduces you to various challenges apart from your routine family financial obligations. You must ensure sufficient financial resources to manage such situations wisely as a primary responsibility. And, to fund such scenarios, you shouldn't compromise your interests or ambitions.

You get a life cover, guaranteed¹ returns on maturity, flexible payout, premium payment options, rider^# options, and tax* benefits with the guaranteed¹ return plans. It will help you plan your future while saving on tax*and assuring life coverage!

L&C/Advt/2022/Nov/2730