Life insurance plans are meant to offer security to individuals or their families. They are primarily intended to provide the bereaved with a monetary cushion when the breadwinner dies. For this reason, life insurance is a monetary tool to help the nominees maintain the same way of life and help them achieve the monetary goals that arise throughout the numerous stages of life.
It is increasingly difficult to find an insurance plan that minimises risk while still providing the necessary financial security in a volatile market environment. A guaranteed return plan will help restore financial stability in such a case. Moreover, a guaranteed return insurance plan is exclusively crafted for risk-averse investors. It provides them with the benefits of life insurance along with maturity benefits and guaranteed returns.
A robust guaranteed return insurance policy not only provides a guaranteed return on investment but also offers a bonus opportunity where policyholders do not have to worry about the volatile market; rather, they can enjoy maximised returns. This is one of the reasons why guaranteed return on investment plans are a popular investment option in India.
What is a Guaranteed Return Insurance Policy?
A guaranteed return insurance plan like the Tata AIA life insurance plan promises a return at maturity as well as life insurance to protect your loved ones. Like an endowment policy, a guaranteed return plan is a combination of savings and investment plans that gives policyholders the flexibility to select their investment horizon to plan for their future goals. In addition, with riders, the basic life insurance for the guaranteed return can be expanded and strengthened.
Short-term market volatility is not a major concern for investors who prefer to invest in long-term financial products. However, the risk lies in not having the required corpus for one-off expenses such as studies, marriage, or old-age.
In an unprecedented time like this, when the pandemic has a huge impact on investing, life insurance with guaranteed returns is the best solution. It is essential to be clear about the guaranteed return to steer clear of unpleasant surprises in the future. The prime element of life protection that comes with a guaranteed return policy makes sure that the dependents receive money if the insured dies in an unfortunate event.
What Role Does Guaranteed Insurance Plans Play in Achieving Individuals’ Long-term Goals?
Based on a person’s goals and expected income levels, there are a variety of insurance products to choose from. Guaranteed life insurance plans offer guaranteed returns on savings in addition to life insurance to help protect the financial future of loved ones. The benefits include:
- The returns are not affected by market volatility or changes in interest rates. The component of guaranteed and fixed returns makes them a great choice, especially for people with a low-risk appetite and want a better return than other savings vehicles.
- Because these are relatively long-term life insurance plans, returns can be tailored to different life-stage needs or financial goals. They also help when it comes to bridging the liquidity gap when the policyholder selects the normal income payout structure. The endowment option can help achieve major goals and provide insurance coverage for long term.
- Today, a variety of guaranteed savings products puts forward the flexibility of choosing riders to enhance your financial protection. Though riders come at some additional cost, they help fill the gaps in that exist in comprehensive protection by providing greater coverage. Given the pandemic’s uncertainty, we see increased interest in guaranteed savings plans, particularly those looking to avoid market volatility.
A guaranteed return insurance plan empowers one to effectively achieve their long-term goals while protecting their family from life’s various uncertainties. It helps their money grow while protecting their loved ones despite the changes in the financial market. Picking the right savings option for their long-term needs is a good move for years to come.