It provides a safety net for loved ones in the event of the policyholder’s untimely death and long-term investment opportunities. In addition, some life insurance policies offer savings options allowing policyholders to accumulate funds over time and receive guaranteed returns.
In this article, we’ll discuss which life insurance plans policies offer guaranteed returns and why you should opt for the best life insurance plan.
What are Guaranteed Returns Plans?
A guaranteed returns plan is a type of life insurance savings policy that provides policyholders with a guaranteed sum of money upon maturity of the policy, regardless of market fluctuations or investment performance. In addition, these plans offer a fixed rate of interest that is determined at the time of policy purchase and remains constant throughout the policy’s term.
The best life insurance plan will offer a flexible life cover that you can customise as per your insurance needs, while you can also choose how much money you want to save to earn guaranteed returns. You will be able to select a policy term that will allow you to accumulate your funds over time and provide life insurance coverage to your family for as many years needed.
What are the Benefits of Guaranteed Returns Policy or Plans?
One of the main benefits of life insurance with guaranteed returns is that they provide policyholders with a sense of security and stability. In addition, with a fixed interest rate, policyholders know exactly how much they will receive upon maturity of the policy, which can be particularly beneficial for those who are risk-averse or nearing retirement age.
Another benefit of guaranteed returns plans is that they are generally less complicated than other investment-linked policies. For example, with investment-linked policies, policyholders must make investment decisions and monitor market performance, which can be time-consuming and stressful. On the other hand, guaranteed returns plans require little management, which is suitable if you only want to save money over a long period of time.
Tata AIA Life Insurance offers different types of life insurance plans, including guaranteed returns plans, that can help you meet your financial goals and protect your loved ones.
Types of Life Insurance Plans with Guaranteed Returns
Two types of life insurance plans offer guaranteed returns:
-
Endowment Plans
These are life insurance policies that provide both insurance coverage and savings. With an endowment plan, policyholders pay premiums for a fixed period, and the policy matures after a specific number of years. Upon maturity, the policyholder receives the sum assured, plus any bonuses that may have accrued over the policy’s term.
Endowment plans are a good option for those who want to accumulate savings over time and receive a lump sum payment upon maturity.
-
Money-Back Plans
As the name suggests, money-back plans provide policyholders periodic payouts throughout the policy’s term rather than a lump sum payment at maturity. With a money-back plan, policyholders receive a percentage of the sum assured regularly throughout the policy’s term.
The remaining sum assured, plus any bonuses, is paid out upon maturity. Money-back plans are a good option for those who want periodic payouts to meet their financial needs.
Conclusion
Life insurance policies, including those with guaranteed returns, can be an important part of financial planning for individuals and families. When considering life insurance options, it’s important to understand your needs and goals and to choose a policy that aligns with them. Consider speaking with a financial advisor or insurance agent who can help you navigate the various options and find the best life insurance plan for your situation.