Secure Your Family’s Future with Life Insurance and Guaranteed Returns
When it comes to financially safeguarding your family, life insurance with guaranteed returns is undoubtedly a reliable option. This may be an efficient way to ensure that your investment is protected from market fluctuations while also giving you life coverage that will protect your family. Here are some of the key aspects of these plans that you should know more about.
Why Life Insurance with Guaranteed Returns Works?
Life insurance with guaranteed returns offers several benefits that make it a viable investment. Some of them include:
- You can expect guaranteed savings/income payouts from these plans. They offer a fixed stream of income, which is conveyed to you transparently at the beginning of the plan period.
- While this income is protected from market-related risks, it is still subject to factors like inflation.
- Simultaneously, life insurance coverage is available with these policies, which will financially safeguard your family in your absence. However, the coverage amount is often lower compared to pure term insurance plans. In case something happens to you during the plan period, the insurer will pay the sum assured to your nominees.
- They can use this money to fulfil future goals, repay debts, or even take care of household costs. However, the adequacy of the payout depends on the sum assured chosen by the policyholder.
- This helps you get mental peace, knowing that your loved ones will be financially secure in your absence.
- At the same time, there is a savings/income component that you can rely on after retirement or at any vital stage in your life without worrying about market fluctuations or investment risks. This maturity income stream can supplement your salary after retirement or help meet household costs.
- These plans come with good tax benefits in the form of deductions under Section 80C for the premium payments that you make, capped at ₹1.5 lakh per financial year. Additionally, the maturity proceeds may be tax-free under Section 10(10D), subject to certain conditions.
- You can flexibly choose a policy tenure that matches your needs and even customise the income payout and its frequency.
- At the same time, in any financial emergency, you can take a loan against the policy to fulfil your immediate requirements. This is possible only after the policy has acquired a surrender value, and the loan amount is typically capped at a percentage of the surrender value.
- It is also possible to personalise your policy by adding riders to it. Some of these options include critical/terminal illness, premium waiver, accidental disability or death, and so on. The availability of these riders varies by insurer and policy. Adding riders helps you widen your coverage scope considerably for a nominal additional premium.
Conclusion
Hence, opting for life insurance with guaranteed returns is a good choice if you wish to secure your family financially and leave behind a legacy at the same time. It will give you stable and market-risk free returns in the form of regular income and guaranteed savings without having to worry about market movements and other fluctuations.
