Guaranteed Return Plans combine the advantages of regular investments and steady returns with the safety net of life insurance. This unique combination is not present in other financial instruments.
But that isn’t all. Let’s see why guaranteed return plans are so suitable for salaried individuals and why investing in them early is crucial.
Financial stability a MUST in the post-COVID era
A financial portfolio that focuses heavily on equity investments has the potential to be disastrous in the future. Although the market may be doing well for now, history has shown that the market corrects sharply and without warning. When you need your money most, there is a good chance your equity investments will only disappoint.
You need Guaranteed Return Plans to bring balance to your portfolio. These plans have the following advantages, which are important for salaried individuals:
- Irrespective of any major change in local, state, central government; global pandemics; or any other event, you are rest assured to get guaranteed returns
- Inflation-beating returns
- Not market-linked but guaranteed
- Tax-free returns between 8% and 9% per annum (presuming 30% tax bracket)
- Triple tax exemption benefit – premium-payment, accumulation, and withdrawal phase exemptions
- Your life is covered while you are invested
The variety in Guaranteed Return Plans
Here are the different guaranteed return plan options:
- Endowment plans
- Money-back plans
- Retirement or Pension plans
- Child plans
Always remember to choose a guaranteed return plan considering your age, income, needs, dependencies, and future goals.
Why investing in these plans early is crucial
As with any investment that has a vesting period, the longer the insurer has your money, the better the returns will be due to the compounding effect. Even a delay of just 5 years means a difference of tens of lakhs of Rupees!
Illustration 1 – Vesting period of 30 years
30-year-old Ramesh starts investing Rs 5,000 monthly until his retirement at the age of 60. If we presume an average interest rate of 9%, he accrues Rs 92.2 lakhs at retirement.
Illustration 2 – Vesting period of 25 years
Ramesh’s friend, Suresh, decides to delay investing for 5 years and finally starts at the age of 35. He too invests Rs 5,000 monthly until his retirement at the age of 60. If we again presume an average interest rate of 9%, he accrues just Rs 56.5 lakhs at retirement.
This is a difference of nearly Rs 40 lakhs due to a delay of just 5 years!
To help you decide and select the best Guaranteed Return Plans, we have a dedicated team of financial experts just a phone call or email away. Do contact us at:
M – 86559-86559 | E – firstname.lastname@example.org