Do you want to achieve financial security without taking unnecessary risks with your investments? This is possible if you opt for a guarantee life insurance policy, which will help you get assured payouts in the future. This plan also gives you the necessary life coverage to keep your loved ones safe and sound should anything happen to you in the interim. Sounds interesting? Let’s look at some of the key aspects of these plans below.
How Guaranteed Life Insurance Plans are Beneficial
A guarantee life insurance policy is a uniquely-tailored financial product where you get a guaranteed maturity return in addition to the life insurance coverage. While these policies often include a savings component, they are distinct from endowment plans. You can choose from available policy terms depending on the insurer’s offerings and your specific objectives. The coverage can also be boosted with various riders to financially protect your family in diverse scenarios.
With a guaranteed return plan, you don’t have to bother about any market volatility or fluctuations. You can gain mental peace on two fronts — your investment is secure, and your family will receive a lump sum payout in case of your demise under the life insurance component of the policy. They can thus take care of their financial needs independently without any hassles. Let us look at some of the biggest advantages of these plans below.
Major Benefits of a Guarantee Life Insurance Policy
Here are some of the key advantages of these plans that you need to know about.
- These plans offer fixed returns without any impact of market volatility or fluctuations. You can thus gain financial stability while not having to take unnecessary risks. This makes the plan ideal for risk-averse investors. The total money assured is returned at maturity in case you survive the policy duration or is given to the nominees in case of your demise during the policy period.
- You can build up your savings to meet varying future goals with a guarantee life insurance policy. Some policies may offer bonuses that help you further scale up your returns, although these bonuses are not guaranteed and depend on the insurer’s performance.
- There are attractive tax benefits as well, since your premiums may be deductible from taxes under Section 80C of the Income Tax Act. Additionally, the maturity amount and bonus may be exempted under Section 10 (10D), subject to compliance with specific conditions, such as the premium not exceeding 10% of the sum assured for policies issued after 1st April 2012.
- You can easily beef up the policy with useful riders that will safeguard your family financially in various unforeseen situations like a terminal/critical illness diagnosis or an accident, to name a few.
Choose a Guarantee Life Insurance Policy Today
Selecting a guarantee life insurance policy is a great move to financially safeguard your family with adequate life coverage, while also getting assured returns in the form of payouts/income, or other benefits. However, it is important to note that these plans may not offer returns that outpace inflation, and the premiums may be higher compared to other investment options. You should always compare plans available in the market and the guaranteed return rate of the insurer before making a final decision.
