Things You Must Consider Before Buying Guaranteed Insurance Plans

We begin building certain goals and dreams for ourselves and our loved ones as we go through life. However, achieving our goals can be difficult at times, as they may require a decent amount of financial support. Therefore, it is important to take the appropriate steps towards achieving our financial goals.

Opting for a guaranteed return insurance plan will be the most optimal way to get financial assistance out of the different products available.

What is a Guaranteed Return Insurance Plan?

Life insurance plans with guaranteed returns are a type of insurance policy that offers the dual benefit of insurance coverage along with guaranteed returns. With the guaranteed return plan, you can simultaneously protect your loved ones and build for your financial goals.

In this plan, you will have to pay the insurer’s premium to maintain the policy active. The premium is split into two parts. The first part is kept for insurance coverage, and the second part is kept for investments.

If you pass away before the plan reaches maturity, your loved ones will get insurance coverage. However, if the plan reaches maturity before you pass away, you will get the guaranteed returns through the plan. Different insurers offer different payout options.

Factors You Should Consider Before Buying Guaranteed Insurance Plans:

  1. The suitability of the plan:

If you’re planning to purchase a guaranteed return insurance plan, you must ensure the purchase will be suitable for you. The guaranteed return plan will help you achieve your financial goals and protect your loved ones at the same time. Therefore, if you’re looking for ways to achieve your financial goals like your child’s education, your vacation abroad or getting a new house, the guaranteed plan will be an optimal solution.

  1. Different variants of guaranteed plans:

If you’ve decided to purchase a guaranteed return insurance plan, you can look through the variants available for you. All the variants are designed to help individuals meet their unique investment and insurance objectives. When you have a decent idea about the different variants of the guaranteed plans available for you, you will be able to make an informed decision.

  1. Features of the guaranteed plan:

Your insurance plan must match your current income, risk appetite, current life stage, etc. In addition, the plan you choose must offer you the flexibility to pay the premiums as per your requirement. Therefore, you must look through the different plans available to ensure you opt for a plan that matches your suitability. Insurers also offer insurance calculators to help customers understand life insurance quotes. It can help you compare the different plans available for you. While conducting the research may be hectic, it will be beneficial once you find the most suitable plan.

  1. Your insurer’s reputation:

The insurer you choose for your insurance plan must be able to help you at a time you need the insurance coverage. Therefore, it is important to look through your insurer’s reputation online before purchasing the plan. Many insurers like Tata AIA life insurance provide information about their plans, coverage, claim process and claim settlement ratio online to help customers. This way, you can learn about whether the insurance claim you file will be settled or not.

  1. Correct circumstance for the guaranteed plan:

If you’re planning to purchase guaranteed insurance plans in India, it would be optimal if you began the investment a bit early or at a young age. Purchasing the policy at a young age gives your investment a longer horizon to be held in the market, which will help you build your financial corpus through the investment.


Thus, opting for a guaranteed return insurance plan can be quite helpful to achieve your financial goals and protect your loved ones simultaneously. However, if you’re planning to purchase the guaranteed return plan, you must consider certain factors before making the purchase. Following these factors will help you purchase the most optimal plan for yourself.

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