Insurance: Standard insurance policies provide financial benefits to the family members after the death of the insured, whereas in a guaranteed return insurance policy, the policyholder not only gets insurance coverage but also gets guaranteed returns on the maturity of the policy. Let us know the special features of such a policy…
Insurance Plan: When it comes to insurance, it is not seen as an investment product, rather it is a medium for individuals to secure the future of their dependents in case of their unfortunate demise. But what if your insurance policy is also known as an investment product? This is where guaranteed return insurance plans come in handy. This category of insurance policies offers guaranteed returns to the policyholder along with insurance cover, but should you buy an insurance policy with guaranteed returns? Let’s know about it…
Standard insurance policies provide financial benefits to the family members after the death of the insured, whereas in a guaranteed return insurance policy, the policyholder not only gets insurance coverage but also gets guaranteed returns on the maturity of the policy. Let us know the special features of such a policy…
- It is a low risk investment. You can count on such a policy for steady returns, irrespective of market fluctuations and fluctuations. Since the risk is minimal, the returns will also be less as compared to other modes of investment.
- You get the best of both worlds- an insurance cover and stable returns on your investment in the future. In case of any unfortunate event, the policyholder’s near and dear ones will get the full sum assured.
- The amount is paid either as a lump sum or as monthly payments, depending on the policyholder’s choice. Thus, people who are looking for a second source of income on a monthly basis can consider such insurance policies.
- Guaranteed return policy also provides tax benefits to the policyholder. While deduction can be availed on the premium paid under section 80C, the maturity amount is tax free subject to conditions under section 10(10D) of the Income Tax Act, 1961.
- However, these insurance plans also tend to be more expensive, which means you may end up shelling out more money on your monthly or annual premiums.
