A financial crisis can introduce emotional and challenging situations in every individual's life. It can affect the normal lifestyle and can even lead to fatalities in extreme cases. Therefore, financial planning at the right time in your life to accommodate all such emergencies is a good way to be prepared.

Different financial instruments satisfy these requirements, and a guaranteed¹ return insurance plan is one of the products that is getting popular. Here is a detail explaining why it is important and popular.

Before discussing why it is popular, let us understand what a guaranteed¹ return insurance plan means.

What is a Guaranteed¹ Return Life Insurance Plan?

A guaranteed return plan is a comprehensive life insurance plan that provides a life cover and guaranteed¹ returns at maturity. You can customise the guaranteed¹ return plan to your advantage by utilising the flexible features. Let us get started understanding why it is popular.

• Guaranteed¹ returns - The returns from the guaranteed¹ return investment plan will be decided by you and your insurance provider during policy inception. So, as the returns are guaranteed¹, you can work on the required funds based on the family commitments and choose the premium and the policy tenure accordingly.
  
  

  For example, suppose you want to start a new business after 7 years. In that case, you can determine the funds required by considering the different factors and the inflation rate and invest in it accordingly.
  
  

• Dual benefits - The guaranteed¹ return is a benefit available apart from the life cover benefit during the policy term. Suppose you are the sole earning member of a family. You may be unable to invest in other financial products to accomplish defined goals such as starting a new business, pursuing higher education in a foreign university, etc.
  
  

  In such cases, the guaranteed¹ return insurance plan is the ideal option. You will be able to save money for the future while ascertaining a life cover to secure your family in case of your unexpected demise during the policy term.
  
  

• Flexible features - A guaranteed¹ return life insurance plan also provides varied features that make investing in and receiving benefits from it comfortable and maximally utilisable. For example, you can pay the premium monthly, semi-annually or annually for the entire policy term or a limited policy tenure.
  
  

  In addition, you can also customise the payout benefit to receive it as a regular income, lump sum or a combination of both. Therefore, if you want to start the business after a few years and cannot expect a steady flow of income, you can utilise the regular income option to substantiate the financial requirement.
  
  

• Safe - The guaranteed¹ return life insurance plan is a safe and secure investment option that can ascertain the benefits at maturity compared to other financial products as it does not involve providing market-linked returns.
  
  

• Online accessibility - You can purchase a guaranteed¹ return plan online. For example, when you purchase our Tata AIA life insurance plan, you can view the policy features, compare the policy benefits, calculate the premium using the online calculator and determine the policy tenure based on the affordable premium.
  
  

• Add-on riders^# - Like any other life insurance plan, the guaranteed¹ return life insurance plan provides the option to include add-on riders^#. The riders^# will enhance the benefits received from the guaranteed return plan by providing additional funds during different scenarios such as getting affected due to a critical illness, total and permanent disability etc. You can even customise the payout benefits from the rider^# to receive it as a regular income and lump sum, lump sum or as a regular income.
  
  

• Tax* benefits - When you invest in a guaranteed¹ return plan, the premium you pay and the payout benefits you receive will qualify for a tax* deduction and exemption under Section 80C and Section 10(10D) of the Income Tax Act, 1961, based on the current tax* provisions.
  
  

• Long-term investment benefit - You can choose to invest in the plan with guaranteed¹ returns for the long term. The longer the time you invest, decent returns you can reap. And, if you choose to invest in the guaranteed¹ return plan early in life, you can benefit from paying cheaper premiums by choosing a longer policy term.
  
  

  At a younger age, the premium is lower because you may not have any diseases or pre-existing illnesses that can increase the death risk that your insurance provider has to bear in the near future. Therefore, the affordable premiums and the long policy tenure will increase your investment benefit over the policy period.

  
  
  

Conclusion

Financial emergencies can lead to emotional disturbances among the members of your family. Therefore, financial planning by investing in different investment solutions should be beneficial in the long term. And that will be a smart way to make financial decision-making.

A guaranteed¹ return life insurance plan is a comprehensive life insurance plan that combines life insurance with guaranteed¹ returns. You can utilise the life cover to safeguard your family in your absence and the guaranteed returns to accomplish your future money goals. It is a safe and secure way to accumulate the required funds over the longer term.

Also, it provides optional rider^# benefits and flexible features to enhance the financial benefit. While you can ascertain the life cover and the maturity returns, you can also save on tax*. The guaranteed¹ return plans are also available online. Therefore, you can compare the different products and choose the most affordable and beneficial guaranteed¹ return plan exclusively online!

L&C/Advt/2022/Jul/1577