When you enter the market with the hopes of building wealth, there are several options available that promise to offer you guaranteed returns. Unfortunately, most of these options usually do not live up to the promises they offer. However, when you opt for a suitable guaranteed return plan offered by a credible insurer, you will not have to worry about the returns.
Guaranteed return plans are some of the most preferred options among different options available for your financial goals. With a suitable guaranteed return insurance plan, you will get insurance coverage and the ability to build wealth. In addition, the wealth creation offered by the policy can help you take care of certain financial goals.
Financial Goals You Can Achieve With a Guaranteed Return Plan
Here are a few goals a guaranteed return investment will help you achieve:
1. Wealth Protection
Suppose you have already accumulated a decent amount of wealth through different investments and policies. In that case, you may wish to move your accumulated funds from equity to debt funds or reinvest the earnings in a suitable plan.
Opting for a guaranteed return investment can be quite optimal for such scenarios. This is because most guaranteed return plans invest in low-risk investments. These investments will protect your earnings and offer you guaranteed returns on them.
2. Financial Backing For Entrepreneurs
If you’re looking to start a new venture of your own, you will need a decent amount of financial support for carrying out the venture. However, most entrepreneurs face many uncertainties and fluctuations for gathering funds.
Therefore, while your idea for the start-up may be quite profitable, you will not be able to execute it without the correct amount of funding. However, if you’ve invested in a guaranteed return plan, you can get access to financial support either as income or as a lump-sum amount. This way, you can rely on your guaranteed return policy for financial support.
3. Protection of Your Financial Goals
You may have different financial goals in your life like higher education for your child, a trip abroad with your spouse, remodeling your house, etc. However, if you pass away due to some unforeseen event, your goals for your loved ones may be put on hold. However, when you own a suitable life insurance plan with guaranteed returns, you will not have to worry about your family’s goals.
The guaranteed insurance plan will offer your loved ones the financial support they need when you’re not around anymore. The policy’s coverage will help your family maintain their financial support, deal with different expenditures, and live a comfortable life. However, their financial well-being will depend on the sum assured amount you choose. Therefore, you must carefully set the sum assured amount for your guaranteed return plan.
4. Tax-Efficient Method For Wealth Transfer
Investments in insurance policies are tax-deductible up to ₹1.5 lakhs as per Section 80C of the Indian Tax Act, and the maturity amount is exempted from taxation as per Section 10(10D). The death benefit obtained through the insurance plan is also exempted from taxation as per the Indian Tax Act. The tax benefits offered through the guaranteed return plans help you protect your wealth and transfer the wealth to your loved ones.
If you’ve listed down your financial goals, you can also opt for a financial goals tracker to track them and achieve them easily. Most insurers like Tata AIA offer premium calculators to help customers plan the Tata AIA life insurance purchase. Relying on these tools can help you plan for your goals systematically.
Among the different options for your financial plan, the guaranteed return plan is one of the most beneficial. With a guaranteed return plan, you can protect your wealth, carry out your financial goals, get decent tax benefits, etc. They allow you to achieve your financial goals without any issues.