Guaranteed Return Plans
In this modern epoch, maintaining economic stability has become difficult for everyone. By understanding the people’s need for financial stability, insurance companies have taken the initiative to provide guaranteed income plans.
This plan fulfills the investor’s need and offers them life insurance along with maturity benefits and regular guaranteed pay-outs.
Features of Guaranteed Return plans
- It’s a kind of life insurance plan that provides regular income for a specified time ranging from 10-30 years.
- It gives a fixed reversionary bonus along with a terminal bonus.
- It provides multifarious benefits such as death benefit, maturity benefits, and tax exemption.
- The policy period varies from 10-30 years.
Who is Eligible for Guaranteed Return Plans?
Guaranteed Income Plans are designed for salaried people who lie between the ages of 18-60 years.
Moreover, the policy term for investors extends from 10 years to 30 years.
Benefits of Guaranteed Return Plans
When policy gets matured, the insured individual receives a reversionary bonus along with a terminal bonus.
In case, the pay-out period is more than 10 years, then the insured gets a regular amount which is a pre-defined sum assured.
In case of any uncertainty like the death of the insured during the time of paying a premium, the nominee receives the basic sum assured amount along with the bonuses if any.
Income Tax Benefits
A tax deduction is available every year. Moreover, tax exemption under Section 10(10D) is also available on maturity as per the terms and conditions.