When you say the word guarantee, especially in the field of a sales pitch it is a very powerful word that insurers use. What does this exactly mean for regular investors and people who purchase insurance product though? While insurance products are designed in such as manner so as to provide financial protection to a person in case there is any sort of mishap or financial loss in event of death, guaranteed plans refer to those plans which also ensure the advantage of returns of premiums on maturity. Therefore people, investors can get the twin advantage of not only protection but also returns on premium at the time of maturity.
Known as Guaranteed Returns Plans, these plans are far more beneficial than simple insurance products which solely insure financial protection. There is no scope of maximising the money that has been invested in the insurance plan. Many people prefer these plans so that they may be able to reap the twin benefits associated.
Moreover, these policies are easily available online where people can read about the plan, compare it with other plans and also purchase it online via electronic means; thereby saving them a great amount of time and effort. In fact, many people prefer to buy Guaranteed Returns Plans online rather than having to deal with the purchase procedure in the traditional manner, where they have to visit the company.
Some of the features of the Guaranteed Returns Plans include guaranteed returns of regular premiums on maturity and payment of the lump sum to the nominee in case of death; which can be utilised to replace the loss of income on death of the life that has been insured.
There are many benefits that are associated with availing these plans. Some of them include:
1) There is a limited premium payment term.
2) There are tax benefits that are available as per the prevailing tax laws.
3) The policy ensured that there is 150% guaranteed payout on the premium amount.
4) In case there is death of the life that has been assured within the policy term, all of the future premiums will be waived off and the guaranteed annual payouts will be payable to the nominee.
5) There are guaranteed annual payouts at maturity.
So, once a person has decided that they want to purchase this policy, the next step would be on how they would go about doing so. Some of the steps that are involved in the same include:
1) The investor has to first decide the amount of premium that he/she wishes to pay.
2) Once Step 1 has been done, the life advisor will assist in the process of application.
3) Once all the above formalities have been completed, a person then has to write out a cheque in favour of AEGON Religare Life Insurance Co. Ltd.
However, there are many eligibility factors that a person must meet in order to avail this policy. Some of the factors include the entry age (minimum and maximum), maturity age, policy term, premium payment term (PPT), premium payment frequency (annual or monthly), sum that has been assured, annualised premium.
It is very important to read the disclaimer of the policy as well so as to understand what is not included within the policy.