At a time when investors are looking to park their earnings in safe havens such as fixed deposits, life insurance companies are offering guaranteed-return products to lure risk-averse investors.
LIC’s Jeevan Aastha
Jeevan Aastha is a single premium assurance plan offering guaranteed returns of 9-10 per cent depending on the tenure of investment. The plan offers a guaranteed return of 10 per cent of the maturity sum assured for a 10-year term and a 9 per cent return for a five-year period. It offers a basic sum assured of Rs 1.5 lakh, which could increase in multiples of Rs 30,000 with no upper limit.
On maturity, the sum assured along with the guaranteed return would be paid to the customer. According to the company, while 50 per cent of the amount collected through this policy would be invested in government securities, the remaining would be invested in debt instruments.
The policy can be surrendered for cash after the policy has run for at least one year. Beginning December 8, 2008, the close-ended plan is open for subscription for 45 days.
IDBI Fortis Bondsurance
Aiming to tap customers looking for guaranteed returns, IDBI Fortis Life Insurance has recently launched a guaranteed-return plan named Bondsurance. Bondsurance offers guaranteed return on investment along with life insurance cover. With a one-time minimum investment of just Rs 20,000, Bondsurance is specially crafted for those looking for attractive guaranteed returns with the promise of insurance protection.
The plan, in fact, addresses the needs of those willing to put away money for either 5 years or 10 years, earning a guaranteed return on the premium paid. At the same time, in the short term, Bondsurance offers liquidity after the first year with a special surrender value in case one needs the funds in a hurry. The plan also comes with two attractive tax benefits under Sec 80C and 10(10D) of the I-T Act.
According to the company, an investment of Rs 100,000 in Bondsurance would fetch Rs 2.03 lakh for customers in the age bracket of 8 years to 32 years on maturity, at the end of ten years. The maturity amount, however, varies with age and term of the plan.
Aegon Religare Guaranteed Return Plan
This is a single-premium plan that guarantees tax-free returns along with life cover. It is a close-ended scheme that offers guaranteed returns at a compounded annual rate 7.2 per cent for two tenures: 7 and 10 years. In the highest tax bracket the guaranteed returns are equivalent to a pre-tax return of 10.90 per cent.
Anybody in the age group of 90 days to 45 years can buy this policy by paying single premium in the range of Rs 50,000 to Rs 4 lakh. The returns on maturity are tax-free and the plan comes with an added benefit of life cover -- five times of the single premium paid. The policy, which requires no medical test, is open for subscription for a limited period only.
Reliance Life ULIPs with guaranteed return
Reliance Life Insurance has launched two unique unit-linked plans under Reliance Guaranteed Return Plan Series I with insurance and pension options, assuring financial security with guaranteed maturity benefit at 6.85 per cent compounded annually plus upside, if any.
The single unit linked insurance plan is available for limited period in two options – Reliance Guaranteed Return Plan Series I – Insurance and Reliance Guaranteed Return Plan Series I – Pension – with fixed term of five years. Under Reliance Guaranteed Return Plan Series I, investment rate of return would amount to 10.4 per cent presuming tax benefits at 10 per cent rate of return and tax rate of 33.99 per cent.
Besides maturity additions in insurance option, death benefit comes with sum assured plus fund value. The insured can choose any life cover between 1.25 to 5 times of single premium. In pension variant, in addition to maturity benefits, the guaranteed return on death is available during the fifth year.
The new plan also provides partial withdrawal benefits in insurance option after three years. Minimum withdrawal amount would be Rs 5,000, whereas maximum withdrawal amount should be 20 per cent of the fund value at the time of withdrawal.
Birla Sun Life’s Dream Plan
Birla Sun Life Insurance Dream Plan is a long-term unit linked insurance plan which offers guaranteed maturity benefits with options to double or triple the guaranteed maturity benefit by choosing 200 per cent or 300 per cent options.
It also gives choice to enhance life cover anytime during the policy term at minimal additional cost. However, the enhanced sum assured chosen must be at least Rs 50,000.
This is not a limited period plan and you can pay the policy premium monthly, quarterly, half-yearly or annually
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