Investing in a guaranteed return plan will help you realise your dreams when you utilise the features and the options to customise them wisely. Moreover, it can ensure the required financial assistance based on the planned timelines. Therefore, planning to invest in the guaranteed return plan and staying invested is important! Let us try to understand how you can do it efficiently!
Before you understand how to utilise the guaranteed return investment plan, let us know what it means.
What Do You Mean by a Guaranteed Return Plan?
A guaranteed return plan is a life insurance plan that provides a life cover to secure your family during your unexpected demise and a guaranteed return at the end of the policy term. Thus, it combines the life cover and savings benefit. In addition, you can customise the guarantee insurance by choosing flexible premium payment and payout options.
For instance, to ensure life cover and savings benefit from the Tata AIA life insurance, you can pay the premium monthly through the policy tenure or for a limited term and receive the payout benefit as a lump sum or a regular income.
How Can a Guaranteed Return Plan Help Realise Your Dreams?
As the guaranteed returns are decided during policy inception, and the features are flexible, you can best utilise them to derive maximum financial benefits based on your needs. Let us consider a few scenarios to understand better.
- When you want to build or purchase your dream house, you might avail of a home loan. However, you might require a specific fund to pay as a downpayment. Therefore, you can invest in a guaranteed return insurance plan to accumulate the fund required to pay for the down payment.
And, if you are the sole earning member of the family, you can accumulate the fund consistently over the policy tenure while ensuring a life cover to secure your family’s future in case of an emergency.
- If you have dreams of exploring the world with your friends or family, you might need a lump sum to enjoy a satisfying vacation. With a guaranteed return plan, you can accumulate the required funds to spend for the whole trip. It needs a good financial planning strategy.
You have to consider the places to visit, the cost to travel to and fro, stay and food expenses, additional emergency funds, etc. While determining the fund, it is important to account for the inflation rate too. Based on the necessary funds, decide on the sum assured, policy tenure, and the affordable premium for the guarantee insurance.
- If you want to start a new business, say after five years, you need to plan for the required amount to fund the initiative. Also, since it is a new business, you cannot expect a steady income to manage your family expenses by relying upon the business completely. So, you can invest in the guarantee insurance and choose the regular income payout option to receive a monthly income to suffice for the commitments until the business stabilises.
- It is also very common to wish to purchase a new car, jewellery or an electronic appliance of your choice that might not be affordable in the current scenario. You can invest in life insurance with guaranteed returns for the required amount to purchase it by deciding on the extent of funds required and the policy tenure. It can help you realise your dreams effortlessly.
Investments with a guaranteed rate of return can help you plan for the finances required to accomplish your dreams. First, however, you need to choose the right savings insurance plan and customise it to receive maximum financial protection and benefits. And most importantly, if you have decided to invest in the guaranteed return plan, you need to do it early in life to receive higher returns at an affordable rate. So, choose the best option, start early and stay invested in the long term to accomplish your dreams smartly.