If you have been looking for an intelligent way to save money, a guaranteed return insurance plan is ideal! It has varied benefits that distinguish its features from the other financial instruments that help you save money in the long term. Here is a detail about it and how it is an appealing savings proposition.
What is a Guaranteed Return Insurance Plan?
A guaranteed return life insurance plan is a life insurance plan that offers comprehensive benefits. It provides a life cover that secures your family in case of your unexpected death and a guaranteed return on maturity.
The guaranteed return serves as a savings benefit. Depending on your income and financial commitments, you can decide on the premium, policy term, and payout option.
How Does The Guaranteed Return Life Insurance Plan Make An Appealing Savings Proposition?
The guaranteed return plan offers certain benefits that make it an appealing savings proposition. Here is a detail about it.
Guaranteed Return – When you invest in a financial instrument, the first aspect you consider is the security of your invested money. As the guaranteed return policy does not provide market-linked returns, your money is always safe and gets accumulated for the larger benefit in the long term.
So, if you are planning to become an entrepreneur or going on a long vacation exploring the world, you can save money today and secure it to accomplish your goals as desired.
Flexibility – Guaranteed return insurance plans are highly flexible. Therefore, you can orient your income to save money based on your affordability and financial commitments. For instance, you can prefer to pay the premium monthly or annually. Also, based on your money goals, you can choose the payout option.
If you want to save money for your retirement, you can choose the regular income option. It will provide a regular income for a defined income period. And, if your goal is to purchase a new house after ten years and the investment is to secure funds for the down payment, you can choose the lump sum payout option. It will provide the guaranteed return as a lump sum amount. There is also the option to receive it as a combination of lump sum and regular income.
Protect financial goals – As the returns are guaranteed in the guaranteed return insurance policy, you can protect your financial goals at any time! In addition, it allows you to calculate the financial requirements precisely and decide on the necessary premium. And, when you choose to purchase the savings insurance plan online, you can benefit even better.
For instance, when you opt to purchase the Tata AIA life insurance plan online, you can calculate the premium using the online calculator. It offers a medium to calculate the actual premium and the policy term, trying different possibilities.
Life cover with rider options – Life insurance plans with guaranteed returns also provide additional rider options. The rider options provide an additional insured sum based on specific scenarios.
For example, the critical illness rider benefit provides the insured sum when you get affected due to a critical illness. You can use it to pay for your hospitalisation and medical expenses. And, it does not affect the life cover or the guaranteed returns on maturity.
Conclusion
A guaranteed return insurance policy is a comprehensive life insurance plan that offers a life cover and additional savings benefits. It is considered an appealing savings proposition as it offers guaranteed return, and flexible features and protects your money goals in the long term. Therefore, plan well, invest early and choose a longer policy term for the required and customised benefits!
