Is Buying A Life Insurance Policy To Get Guaranteed Returns A Good Option?

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Life Insurance policy in layman’s language is insurance coverage that provides financial assistance to the beneficiaries of the policyholder on their death. It is the main objective of a life insurance policy but there are life insurance policies that can even offer you guaranteed returns which we shall be discussing in the article.

Endowment Plans:

Endowment Plans offer dual benefits of insurance and savings. This life insurance policy is best suited for individuals who want life insurance coverage along with a sizable savings component. 

Key Benefits of buying Endowment plans:

  1. Buying this life insurance policy is a great way to save money as they offer low risk guaranteed minimum returns.
  2. In case the policyholder dies during the policy tenure, the sum assured is provided by the life insurance companies in India to the beneficiaries of the policy.
  3. You can buy additional riders at a nominal cost to increase the scope of insurance coverage.
  4. You can get tax benefits under sections 80C and 10(10D) of the Income Tax Act.
  5. You can get a loan against your life insurance policy.

3 Best Endowment Plans in India as per our recommendations:

  • LIC’s New Jeevan Anand
  • Aditya Birla SunLife Insurance Secure Plus Plan
  • ICICI Pru Savings Suraksha

Disclaimer: Consult your insurance advisor for assistance in choosing the best life insurance policy based on your insurance needs and requirements.

MoneyBack Plans:

MoneyBack Plans are one of the best life insurance policies offered by life insurance companies in India. Under this life insurance policy, the policyholder gets a certain percentage of their total sum insured at regular intervals as a survival benefit and the remaining sum assured would be given on maturity of the policy. Moreover, if the policyholder dies during the policy period, the beneficiaries are paid the entire sum assured without any deductions of survival benefits paid earlier.

Key Benefits of buying MoneyBack Plans:

  1. Buying this life insurance policy is a great way to save money with liquidity.
  2. Policyholders are entitled to bonuses (if any) declared by the life insurance companies.
  3. You can buy additional riders at nominal cost to increase the scope of insurance coverage.
  4. You can get tax benefits under the section 80C and 10(10D) of Income Tax Act.
  5. In case the policyholder dies during the policy tenure, the sum assured is provided by the life insurance companies in India to the beneficiaries of the policy.

3 Best MoneyBack Plans in India as per our recommendations:

  • HDFC Life Super Income Plan
  • ICICI Pru Cash Advantage
  • Kotak Premier Money Back Plan

Disclaimer: Consult your insurance advisor for assistance in choosing the best life insurance policy based on your insurance needs and requirements.

Retirement Plans:

Retirement Plans are a unique type of life insurance policy that provides benefits of financial stability after retirement along with a life cover. Under these plans, the policyholder would pay premiums until retirement to create a corpus. And after retirement, the corpus generated by the policyholder over the years would be distributed back to them as a regular income for a predetermined time period or for their entire life.

Key Benefits of Buying Retirement Plans:

  1. This life insurance policy is a great way to create financial stability post-retirement through regular annuity/pension payments.
  2. You can plan an early retirement with adequate corpus.
  3. It helps in Legacy planning while also helping in taking care of medical emergencies.
  4. You can get tax benefits under sections 80C and 10(10D) of the Income Tax Act.
  5. In case the policyholder dies during the policy tenure, the sum assured is provided by the life insurance companies in India to the beneficiaries of the policy.

3 Best Retirement Plans in India as per our recommendations:

  • SBI Life Saral Pension Plan
  • Aditya Birla Sunlife Empower Pension Plan
  • Bajaj Life-Long Goal Pension Scheme

Disclaimer: Consult your insurance advisor for assistance in choosing the best life insurance policy based on your insurance needs and requirements.

Buying a life insurance policy with guaranteed returns in the form of annuity, survival, or maturity benefits is a great way to plan for some of the financial goals in life. Choose a policy that matches your needs and go for it!

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