Thursday, 24 March 2022 | PNS | Dehradun
Uncertainties in life were made starkly visible during the Covid-19 pandemic. The implications were felt in the financial world as well with stock markets crashing, commodity prices also going through extreme volatility and the overall economy of countries and households, both, going through tumultuous times. In such a scenario, it is prudent to invest in products that can guarantee some financial stability and certainty, say experts.
The certainty of a guaranteed return on investments, irrespective of the extreme volatility of the stock and commodity markets is something that the Indian investor has often looked for. That is the reason that fixed deposits and provident fund schemes are popular with Indian investors. Guaranteed return plans are offered by the insurance companies in which all one needs to do is pay a fixed premium on a monthly or yearly basis during the plan’s tenure. After the policy matures, the investor starts receiving 100 per cent guaranteed returns on the investment. One can choose to opt for lump-sum benefit or recurring income for payout. The payout depends on the premium paid, the insurance coverage chosen and the duration for which premium payments were made. Under these plans, one can choose to receive payouts for a fixed number of years or go for lifelong income.
Experts opine that the best thing about these plans is that one knows exactly how much money one would get on a monthly basis when the policy matures since the return is guaranteed. This certainty of regular income goes a long way to plan the future and achieve goals. Another certainty these plans bring with them is that should anything unfortunate happen to the investor, the financial security of his or her family is covered. That is because these plans assure long-term, guaranteed income along with life cover equal to 10 times the annual premium.
Guaranteed return plans work for those who prefer the risk-free route and certain returns for their investments. These schemes also work for those investors who have a long-term horizon.
