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Guaranteed Return Plan Gives Guaranteed Returns + Life Cover + Tax Benefits

“Goals” & “Dreams” are the two words towards which we are spending most of our life. We want to provide the best to ourselves and our loved ones. To ensure that you are able to live a carefree life, a financial plan that provides protection of life cover combined with the benefits of a savings plan can help you plan for various goals in life becomes extremely important.
A Guaranteed return plan is a type of life insurance policy that provides guaranteed returns as well as  death benefit. It offers a 100% guaranteed return on investment within a specific timeframe.It combines the elements of protection and savings, offering payouts which can be received as a lump sum, regular income, or lifelong income.
  • Strong Financial Protection
  • Long Term Savings and Insurance
  • Guaranteed Returns
  • Life Cover

Maximise Your Savings With Guaranteed Return Plans

Guaranteed Return Plan Form
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What is Guaranteed Return Plan?

Guaranteed return plans are purchased for their dual benefits of financial protection and savings accumulation. These plans act as a disciplined savings tool while providing a life cover, making them a popular choice for individuals seeking a comprehensive financial solution. It helps you save fixed amounts regularly over a period of time and provides guaranteed returns for your future, along with customisable return or income options as per your requirements.
If you are looking for a plan that gives periodic returns at regular intervals, you should go for the guaranteed income plan. This is a unique life insurance policy that assures a guaranteed life cover against the policyholder's death and also serves as an investment tool.
You have to pay the premiums for the chosen premium paying tenure. If during the term of the policy, the insured member dies, the death benefit would be paid. The death benefit is, usually, the sum assured along with any bonus or policy additions added under the plan.
On the other hand, if you survive the term of the policy, the maturity benefit would be paid. This benefit is also equal to the sum assured and any other additions depending on the benefits promised under the investment plan.

BenefitHow it Works
Death BenefitIf you don't survive the policy term, your nominee will be eligible to receive the sum assured as the death benefit.
Maturity BenefitIf you survive the policy term, you will be eligible to receive a maturity benefit. It can be the sum assured, the survival benefit as regular payouts, or a total lump sum of the payouts.
Survival BenefitDepending on your insurer and product, you may receive regular payments at specified intervals, They can be either a percentage of the sum assured or a percentage of the annual premium you have paid.

Need and Importance of Guaranteed Return Plan

The need for a Guaranteed return plan arises from the desire to ensure financial security for the family and simultaneously build a corpus for future financial goals. These plans are crucial for those who want a disciplined savings approach coupled with life coverage. Choose this plan If You wish to receive regular payouts at specific intervals to cover your financial goals or expenses, such as instalments for a new house, your child's education fees, your spouse's higher education fee, or post-retirement expenses, etc.

Offers Financial Protection

While having savings is beneficial, it's important to have adequate cover for you and your family's expenses for an extended period if an unexpected event were to occur. That's where a life insurance policy comes in. It not only provides a shield for your financial responsibilities but also guarantees a financial payout to your family members in the event of your absence.

Protecting Financial Goals

A Guaranteed return insurance plan serves as a crucial tool to address your and your family’s financial obligations. Whether it's meeting short-term needs or achieving long-term financial goals, Choose this plan If you wish to receive regular payouts at specific intervals to cover your financial goals or expenses, such as instalments for a new house, your child's education fees, your spouse's higher education fee, or post-retirement expenses, etc.

Pays Off Outstanding Debt

A life insurance policy can also help your loved ones pay off any outstanding debts, such as home loans, business loans, etc., in your absence. By investing in such a policy, you can prevent your family from shouldering financial obligations during an already challenging period.

Replaces Your Lost Income

If you are a salaried individual, self-employed, or own a small business, your income plays a crucial role in meeting your family's daily needs. From housing and food to utilities, clothing, car maintenance, outstanding loans, and health care premiums - all of these expenses are likely part of your monthly budget. Even in the event of your absence, your family will still need to cover these expenses. That's where a life insurance plan comes in. It provides a death benefit that can help replace your income and support your family's financial needs - in case the unfortunate happens.

Eligibility Criteria to Buy a Guaranteed Return Plan

The eligibility criteria for Guaranteed return plans typically include the below factor with variations based on the insurance company and specific plan. Eligibility Criteria Specifications

Eligibility CriteriaSpecifications
AgeIndividuals in the age range of 18 to 65 years
Minimum Policy Maturity Age18 Years
Policy Term Range5 years to 30 years
Premium Payment FrequencyRegular/ One-Time/ Limited
Premium Payment OptionsYearly/ Half-Yearly/ Monthly/ One-Time
Annual Income and nature of occupation
Health conditions and Lifestyle habits

Key Benefits of Guaranteed Return Plan

Besides providing financial security to attain your goals, the guaranteed return plans protect your loved ones during crucial times. Below are few benefits offered by a guaranteed return policy are;

100% Guaranteed Return

100% guaranteed return plans are zero risk investment options as they are not linked with the market and returns will be secured

Savings Accumulation

Guaranteed Return Plans offer a guaranteed sum assured along with a basic l bonuses if applicable at the end of the policy term which helps to build a corpus over the policy term which shall assist in fulfilling your goals.

Financial Security

These plan offers a lump sum payout to the the nominee or beneficiary in the unfortunate event of the policyholder's demise during the policy term

Tax Benefits on Investment and Returns

When you invest in a guaranteed return plan, you are eligible for tax benefits under Section 80(C) and also you get tax advantage on the returns you receive Under Section 10(10D) of the Income Tax Act

Loan Facility

Some Guaranteed return plans allow policyholders to take loans against the accumulated savings.

Flexibility of Premium Payment

Many plans provide you flexibility in paying premium amount in single, annual, half-yearly, quarterly, monthly premium payment mode.

Our Preferred Plan

The preferred Guaranteed return plan may vary based on individual preferences and financial goals. Factors to consider include the desired coverage amount, policy term, premium affordability, and any additional features like riders or bonuses.

Inclusion and Exclusions in Guaranteed Return Plan

The inclusion under life insurance plans may differ from one policy to another. Below are common coverages;

Death Benefits

In case of an untimely death of the life assured during the policy term, the nominee will receive a death benefit, which will help your financial dependents to fulfill their daily needs and life goals.

Maturity Benefit

The guaranteed returns plans offer maturity benefits if the policyholder survives the policy term. The sum assured amount is given to the policyholder as a maturity benefit at the end of the policy tenure.

Guaranteed returns

Under life insurance, there are traditional plans which provide guaranteed returns that are not dependent on the market irrespective of the market conditions, these include plans like guaranteed returns plans, retirement plans, wholelife plans etc

Guaranteed Bonus

There are some plans under life insurance which provide guaranteed bonuses This additional bonus enhances the overall returns in the policy by providing an additional lump sum benefit, which increases the total payout at maturity or in the event of the policyholder's death.

Riders Benefits

Most of the life insurance companies offer multiple riders like Accidental Death Benefit, Accidental Total and Permanent Disability, Critical Illness Rider etc that you can attach with your vanilla policy to enhance its coverage.

Act of Suicide

Any accident or Death due to suicide or any self-inflicted injury will not be covered




Intoxication

The insurer is not obligated to compensate the beneficiaries if the death of the life insured if the policyholder dies under the influence of alcohol or drugs

War or terrorism

Life insurance policies do not cover risks which are beyond their control, If the policyholder dies due to an act of war or terrorism, the life Insurance policy may not cover it.

Criminal activities

Life insurance policies do not cover risks associated with illegal activities, Death caused while performing any criminal or unlawful activities shall not get covered

Participation in High-risk activities

Death caused while participating in adventure sports or any dangerous activities like bungee jumping, rock climbing, etc. shall not be covered

injection

Sexually Transmitted Disease

If the insured's death is caused by STDs (Sexually Transmitted Diseases) such as AIDS, HIV, or other sexually transmitted diseases, the insurance provider will deny any claim for the same

Non-disclosure or Misrepresentation of Material Fact

If you hide an important fact from the insurance company at the time of buying the policy and death occurs due to such a hidden fact, the company can reject your claims. In that case, the policy would become null and void and no claim would be paid

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Waiting period

Death caused during the waiting period is not covered by life insurance policies basis the plan and riders opted

Different Time Periods You Should Know About in Insurance

1. Premium Payment Term (PPT): It is term for payment of premiums and it depends on the plan chosen.

2. Free Look Period: The free look period in life insurance is usually 15 to 30 days from the date of delivery of policy document, depending on the channel through which you have purchased the policy.

3. Grace Period: The insurance grace period is 15-30 days for policies basis the premium payment options like monthly, quarterly , yearly.

4. Revival Period: A revival period refers to the time band allowed by the insurance company to recover a lapsed policy starting from the due date of the first unpaid premium. Typically, this period ranges between 2-5 years and varies across insurers.

FAQ's

As the need for insurance increases, doubts and queries also increase. Navigating insurance complexities can be overwhelming. To help you with this, We have tried to address common doubts for a seamless journey with Bimasure;

Yes, most guaranteed return plans allow for surrender, but it may attract certain charges, and the surrender value may vary.

Grace periods are usually provided, and the policy remains in force during this time. However, continuous non-payment may lead to policy lapsation.



 Maturity proceeds may be tax-exempt under Section 10(10D), subject to applicable conditions.

Some Guaranteed return plans offer options to enhance coverage through additional riders or by opting for higher sum assured.

Generally, there is no waiting period for the death benefit. The coverage is typically effective from the start of the policy.

Some Guaranteed return plans offer partial withdrawal options, subject to certain conditions and limitations outlined in the policy terms.

If premium payments are discontinued, the policy may enter a grace period. Continuous non-payment may lead to policy lapsation, with reduced benefits or surrender value.

Yes, most Guaranteed return plans allow policyholders to nominate multiple beneficiaries and specify the percentage of the sum assured each nominee will receive.

Many Guaranteed return plans offer bonuses or additions based on the company’s performance. These can enhance the maturity value of the policy.

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