Understanding a Guaranteed Return Plan
A Guaranteed Return Plan is an ideal savings plan for you and your loved ones. It provides ideal returns and makes sure that your and your family's dreams and goals are achieved and you do not face any hassle in these challenging times. It takes care of your expenses and ensures that your loved ones are financially protected in case of an untimely and unfortunate event, such as the policyholder's death.
Benefits of Investing in a Guaranteed Return Plan
1. Financial Security of You and Your Loved Ones
Mishaps and unfortunate events such as the breadwinner's death don't have a prior warning. To ensure any financial constraint does not hold back your loved ones in your absence, it is necessary to invest in a guaranteed return plan. With this, your family does not have to worry about any restrictions and can carry on with their lives without any hurdle.
2. Secure Your Assets
There may be a situation wherein you might have to take a loan to meet your financial expenses. In case of an untimely demise of the breadwinner, your family might have to repay the loan against your valuable assets such as a house, cars, etc. A guaranteed return plan ensures you do not lose out on your valuable assets in the long run and helps your family pay off the loan seamlessly.
3. Tax Benefits
Another key advantage of a guaranteed return plan is that the premiums paid by you for the guaranteed return plan are eligible for tax benefits under Section 80C and 10 (10D) of the Income Tax Act, 1961. However, tax laws are subject to change from time to time.
4. Flexibility in Payment of Premiums
A guaranteed return plan offers you flexibility in paying premiums according to what suits you the best. You can pay the premiums monthly, quarterly or annually.
5. Rider Benefits
A guaranteed return plan also offers rider benefits to the policyholder, such as accidental death benefits, hospital cash rider benefits, etc. However, please note that riders are not mandatory and are available at an additional cost.
Investing in a guaranteed return plan is ideal to financially secure your loved ones even if you are not around. Moreover, in such unpredictable times, a guaranteed return plan ensures your loved ones do not face any hassle in achieving what they have dreamt for.