2 Options for Guaranteed Return Investment Plan

2 Options  for Guaranteed Return Investment Plan

After the impact of the Covid-19 pandemic, life has become much more uncertain. We all want a secure and seamless future for ourselves and our near and dear ones. Moreover, in today's time and age, everything is becoming expensive to the rising inflation rates and cost of living as well. It is much more important for someone who is the sole breadwinner of their family to have a financial safety net for themselves and their family.

In the worst-case scenario, if the family's breadwinner meets with an untimely and unfortunate demise or gets diagnosed with a critical illness that restricts him from earning for his family, things become much hard. Moreover, his family might fall into the clutches of financial and emotional struggles and leading a normal life becomes uncertain. This makes it crucial for us to invest in a guaranteed return investment plan. Investing in this plan gives us and our family financial security and the liberty to lead our lives peacefully and without any financial constraints.

In this article, we will look at the meaning of guaranteed return investment plans and options that you can invest in.

What are Guaranteed Return Investment Plans?

A guaranteed return investment plan is one of the safest and risk-free investment plans you can consider investing in. This plan is a non-participating monthly income wherein the policyholder will have to pay premiums on an annual basis for the tenure of the policy they have planned. As the name suggests, the guaranteed return investment plan will provide the policyholder with guaranteed payouts as the policy reaches its maturity period.

Below are a few guaranteed return investment plans that you can consider investing in.

Unit Linked Insurance Plan (ULIP)

  • Unit Linked Insurance Plan is one of the best guaranteed return investment plans you can consider investing in.
  • This plan comes with the dual benefit of providing a platform for both insurance and investment. One part of the premium you pay is used for providing insurance. The remaining part of the premium is used to invest in market-related schemes, such as bonds, equity, shares, stocks, etc., for wealth creation.
  • This plan provides a lump-sum amount of death benefits to the family in case of an untimely demise of the policyholder. This will ensure that the policyholder's family can continue with their lives even if they are not around to provide a financial backup.
  • Under this plan, the policyholder can claim upto Rs. 1.5 lakhs of tax deduction benefits under Section 80C of the Income Tax Act, 1961. However, tax laws are subject to change from time to time.

Public Provident Fund (PPF)

  • Public Provident Fund (PPF) is another one of the best guaranteed return investment plans you can consider investing in.
  • This plan comes with a lock-in period of a minimum of 15 years. The policyholder can extend the policy's tenure by 5 years in case he wants to. In case the policyholder faces a financial emergency, he can make partial withdrawals during the 7th year of the policy.
  • 3.This plan provides a lump-sum amount of death benefits to the family in case of an untimely demise of the policyholder. This will ensure that the policyholder's family can continue with their lives and achieve their dreams even if the policyholder is not around to provide a financial backup.
  • Under this plan, the policyholder can claim upto Rs. 1.5 lakhs of tax deduction benefits under Section 80C of the Income Tax Act, 1961. However, tax laws are subject to change from time to time.

Your Way Forward

You now know what a guaranteed return investment plan is and what are the options you can consider investing in. You should go for a top-rated insurance company with an impressive claim settlement ratio.

Disclaimer :

*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time’

The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

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