In life, there are no guarantees. You go to the market, and find that all products are there on warranty. But, here is something which offers you a guarantee.Yes, we are talking about a few select life insurance plans which offer you guaranteed returns. Let's take a look at them.
HDFC Life Classic Assurance Plus
Under this plan, you get guaranteed benefits of sorts. The best part is that you have to pay premium for a limited period of time and then reap benefits over a period of time.
The premium paying terms are 7 years and 10 years. But the policy term is double of that period. For instance, if you choose premium payment period as 7 years, you can extend your life insurance coverage period to 15 years.
Wondering, that you will lose money during the remaining period? No, your premium amount will keep accumulating returns during this period. After the expiration of the policy term, you get the fund back along with accumulated returns.
The benefits are not limited to this. You are also provided guaranteed returns in the form of revisionary bonus amount during the premium payment term. This amount is usually kept at 3 per cent at the minimum and may go north, depending on the market movement.The sum assured, under this plan, can be 10 times of the annualized premium.
The minimum entry age for a 10 year policy term is 8 years. This age limit is further relaxed to 3 years, when you extend the policy term to 15 years. If you go with a 20 years policy term, even a new born can be covered under the policy. In this case, the minimum entry age is just 30 days. Isn't it amazing?
Wish to know about more advantages?
Okay, here are a few more. You can go for a monthly installment plan which starts from Rs 1,000. The minimum yearly annual premium is Rs 12,000. There are various frequencies under which you can pay up your premium amount comfortably. This includes quarterly and half-yearly.
If at any point in time, you wish to change the frequency, just log in to your online account and file an application. Otherwise, you can simply visit any HDFC Life branch and get the change impacted under your policy.
What if you require funds in an emergency situation? There are ways. Once your policy reaches the surrender value, you can avail a loan of up to 80 per cent of the total value. So, that was HDFC Life Classic Assurance Plan.
Now, let's take a look at Aegon Religare i-Guarantee plan.
The basic features of this plan are similar to HDFC ones. So, we will talk about the offerings which are a bit different.
Firstly, the plan offers you guaranteed maturity benefit of 135 per cent of the annualized premium. Yes, you are reading it right and we have not written it erroneously, that's guaranteed!
In order to get this superb benefit, you have to pay your premium at least for 6 years. Let's take an example.
You pay premium of Rs 1 lakh for 6 years. How much you pay in 6 years? Rs 6 lakh. Now, after 6 years, you can claim maturity benefit of Rs 8.10 lakh. This comes to Rs 2.10 being the return on your investment of Rs 6 lakh. This is the guaranteed pay out.
The minimum entry age of this plan is 12 years, and maximum is 50 years.
Also, you cannot invest more than Rs 2.50 lakh in this plan, in a year. So, these are some of the limitations. Also, the premium payment term is 6 years at the minimum.But given the benefits, you should consider these plans seriously, and analyses them diligently.
If you wish to compare them more objectively on a dynamic platform
Both the aforementioned plans are eligible for tax deductions of up to Rs 1,50,000 under section 80C of the Income Tax Act.
So, just burry your worry and start putting your savings in the right direction.
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