How to Choose the Best Guaranteed Return Insurance Plans in 2022?

How to Choose the Best Guaranteed Return Insurance Plans in 2022?

The financial goals of the family hold an important place in your heart. To ensure that all the dreams of your family turn into reality, it is essential that you invest in the right savings plan. With a guaranteed return plan, you can fulfil all your short-term and long-term financial goals. You can save for your dream house, child’s marriage, funding your child’s education abroad, etc.

A guaranteed return plan offers the dual benefit of life coverage and guaranteed returns on maturity. These returns are not market-linked. The plan offers you an element to save up for some of the most important goals in life.

If you are looking for the right return of premium life insurance, the guaranteed return plan is right for you.

Let us now get into the list of things to take into consideration while buying a guaranteed insurance plan.

Things to Consider While Buying the Best Guaranteed Insurance Plan

Here are the top things to consider while buying the best guaranteed insurance plan:

  • Assessing Your Financial Goals

The first thing that you need to do is understand your long-term and short-term financial goals. This will help you understand the best way to achieve these financial goals. Also, if you are aware of the amount of savings that you need, buying the right life insurance plan becomes easier. For example, you might want to opt for term insurance with a return of premium if you want to include an element of savings in your term insurance plan.

  • Online Accessibility

While buying a guaranteed insurance plan, it is essential that you opt for a plan that is available online. This will help you understand all the features of the plan by going to the website of the insurer. Also, you can buy a plan from the comfort of your home. For example, you can purchase the Tata Guaranteed Return Insurance Plan from the Tata AIA website, and all the Tata AIA policy details are also available there.

  • Tax Benefits

With a guaranteed return plan, you can get a tax benefit on the premiums that you pay u/s 80C of the Indian Income Tax Act. Also, the death benefit from the plan is tax-exempt as per 10(10D). Moreover, the maturity benefit that you receive under the plan is also exempt from any taxes. Thus, for tax-saving purposes, buying the plan will be beneficial for you.

  • Premium Payment Flexibility

While buying life insurance with returns, it is essential that you consider the premium payment flexibility that the insurer offers. Therefore, you must choose an insurer that offers you the options of single, annual, semi-annual, monthly, and quarterly premium payments. This way, you can choose a premium payment option that suits your needs.

  • Riders

Riders are additional covers that enhance the coverage of your guaranteed return plan. You must consider the rider options offered by your insurer. Remember to choose the riders wisely, as you have to pay an extra premium for every rider that you include in your plan. So, choose riders according to the budget that you have allocated towards the premium of the guaranteed return insurance plan.

  • Liquidity

The guaranteed return plan that you buy must offer some liquidity in case a contingency arises. Many insurance plans like the Tata Guaranteed Return Insurance Plan offer you the option to avail of a loan against the policy if the need arises. Thus, if there is a situation where you need funds, availing of a loan against the policy might be a suitable choice.

  • Choose An Insurance Provider Wisely

Choosing the right insurance provider is also an important aspect of buying life insurance with returns. So, research different insurers while choosing a plan for yourself. Also, understand the claim settlement ratio of the insurer before buying the plan. You can also read the reviews regarding insurers online.


Before you select a guaranteed insurance plan, it is important to ask all the right questions. According to the terms and conditions of the plans, each plan works differently. So, while choosing a plan, read all the inclusions and exclusions mentioned in the policy. Also, consider your financial objectives in-depth so that you can buy a plan that is right for your and your family’s financial goals.