Guaranteed insurance plans are the type of life insurance products promising a combination of life coverage along with assured payouts. Unlike traditional insurance policies, these plans guarantee returns in the form of lump-sum payouts or periodic income or maturity benefits wholly independent of market fluctuations. They are particularly beneficial to risk-averse individuals for whom financial security is their top priority over high returns. There are different types of guaranteed Insurance Plans available in India. A few of them are as follows:
Types of Guaranteed Insurance Plans
Endowment Plans
Endowment plans to provide a guaranteed lump sum amount with life coverage. The payment is received in a lump sum at the expiry of the plan. The death benefit is provided to the family members at the event of the death of the policyholder. These plans give a guaranteed sum assured at maturity with life coverage.
Guaranteed Income Plans
Guaranteed plans are ideally suited for those who receive a regular income to serve expenses. These offer a periodic payout after serving for a predefined premium payment tenure. This plan can be acquired for children going for higher education or someone dealing with specific ailments on regular medication.
Money-Back Policies
Money Back policies are one of the best guaranteed income plans in India. Periodic payments are withdrawn from the policyholder money-back policies. On the date of maturity, they pay the person in terms of a lump sum. This is for those people who would feel better while making small investments or would like to make periodic investments but need a huge amount for one purpose in the future.
Whole Life Plans
Whole life plans are for people who wish to secure themselves and their family members throughout their lifetime. The plans offer coverage till 99 or 100 years of age, which is guaranteed to be returned. This can be availed by people having a good income level and can pay for a long time. The amount received at maturity or death is also pretty high compared to other plans.
Deferred Annuity Plans
Deferred Annuity Plans work as retirement benefits for people. This plan takes premiums for a certain time from the policyholder. However, it starts giving returns after a certain number of years. It is perfect for those seeking a secured income after retirement.
Major Features of Guaranteed Insurance Plans
It is important to keep in mind some features of Guaranteed Insurance Plans. These plans provide fixed income at maturity. However, the payment terms defer with the plans and the requirement of the policyholder. Moreover, these plans also provide death benefits in case of the demise of the policyholder. It is advisable to choose Guaranteed Insurance plans which take flexible payments and provide tax benefits.
Guaranteed insurance plans in India serve as a risk-free route toward achieving financial security and fulfilling all life goals. Careful consideration of your financial needs, policy terms, and payout structures would help you select a plan that aligns with your aspirations. Whether it is to retire, for education, or to secure your family’s future, these plans serve as a reliable solution to safeguard your financial well-being.