What is returns of Money Back Plans - Planify

Guaranteed Return Plans: How investing online can earn you better returns

Amidst the fluctuating market scenario and low-interest-rate environment, people are in search of products with a promise of guaranteed returns. Over the last few years, there has been a significant drop in the interest rate offered by banks on fixed deposits which have put financial planning, especially of the middle-class Indian, at great risk. The rate reduction in interest given on bank deposits has greatly impacted the financial planning of millions of households.

For Indian investors, short-term market volatility is not a matter of great concern as they mostly prefer long-term investment products. The actual risk lies in falling woefully short of the required corpus for one-time expenses like a child’s education, marriage, or even own retirement. For unprecedented times like these, life insurance products that offer guaranteed returns are the best solution. It is always important to have clarity on the amount of return expected after a fixed period of time. Moreover, the life protection element under these products ensures that even if the policyholder dies, the dependents will always get the promised money.

Guaranteed Return Products

Considering the ongoing market scenario, the time is right for customers to understand and evaluate alternate investment options. One such category of products that customers must make a part of the investment kitty is Guaranteed Returns Plans that promise guaranteed returns, irrespective of the changes in market conditions and interest rates. Guaranteed Returns Plans come with a ‘life protection’ component that makes these plans better than the rest in the niche.

In comparison to bank FDs, guaranteed return products offer better returns on a tax-adjusted basis. Apart from a promise to give a fixed return, these plans also come with the guarantee of payout in case of the sudden demise of the policyholder. With these plans, there is nothing left to chance when it comes to accumulating an adequate corpus and providing financial protection to your family. A guaranteed return product also gives you an initial tax benefit, fixed and tax-free returns, and a life protection cover. When the life assured dies during the term of the policy i.e. before dating of maturity, proceeds under the policy are payable as a claim to the nominee.

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