Guaranteed Return Plans

What is a Guaranteed Return Plan?

A Guaranteed return plan helps you save fixed amount regularly over a long term and provides guaranteed returns for your future, along with customisable return or income options as per your requirements. In this, you pay a regular amount or deposit amount in lump sum after which you get payouts. Further, in case of any unforeseen event, you family members can use this payout to live a comfortable life.

These plans are suitable for people who want to keep their money safe and get a guaranteed return instead of taking risks with potentially higher but uncertain returns influenced by the market. This plan enables you to save for your future expenses while providing a life cover that protects your family members in your absence.

Key Features of Guaranteed Return Plans:

Guaranteed Returns

The primary feature is the guaranteed returns, which are fixed and known at the time of investment.

Life Insurance Cover

These plans usually include a life insurance component, offering financial protection to the policyholder’s beneficiaries in case of the policyholder’s death.

Regular Payouts

Some plans may offer regular payouts in the form of periodic annuities or lump-sum payments at the end of the policy term.

Financial Security

Provides a guaranteed return on investment, offering financial security and stability Life insurance component ensures financial protection for beneficiaries.

Risk-Free Returns

Ideal for risk-averse investors as the returns are not influenced by market fluctuations. Suitable for long-term financial planning and goals, such as education, marriage, or retirement

Tax Benefits

Premiums paid can be eligible for tax deductions under Section 80C of the Income Tax Act (in India).

Maturity benefits may also be tax-free under Section 10(10D), subject to certain conditions.