Advantages of Purchasing a Guaranteed Return Insurance Plan in India

One of the key dreams of the majority of people is to lead a financially stable and stress-free life. Hence, with growing demands and responsibilities, it is advised to invest in life insurance or term insurance, or a savings policy. Apart from many investment avenues, people usually invest in Guaranteed Return Insurance Plans or GRIP. So, let us understand the Guarantee Return Insurance Policy. 

What is the Guaranteed Return Insurance Plan?

The Guaranteed Return Policy is a savings plan that allows you to save up all you need to meet the major milestones in your life and turn your dreams into reality. With a guaranteed return insurance plan, you can benefit from life insurance plans and an element of savings to meet your life goals.

What are the Advantages of a Guaranteed Return Insurance Plan?

You can get several benefits from life insurance with guaranteed returns if you have invested in the right manner. Here are some of the advantages mentioned in detail. 

Maturity Advantage

Due to risks and other factors, most people find it difficult to prepare for long-term financial planning. The guaranteed return insurance policies allow you to save more money by offering maturity benefits with lump-sum returns. Such an insurance savings plan includes methods for dealing with any urgent financial needs that necessitate a large budget.

Second Income source

The primary advantage of this plan is that it allows a policyholder to cover expenses through a regular income option. It provides methods for easily planning retirement life, which will aid in leading a trouble-free life. As a result, it is also known as a guaranteed pension plan.

Unforeseen death benefit

In the unfortunate event that the insured dies during the premium-paying term, the nominee of the policy receives the basic sum assured amount, as well as any reversionary bonuses and terminal bonuses. Furthermore, the payouts are carried forward for the next 15 years or as specified in the policy. If the insured dies after the premium-paying term or during the payout period, the nominee receives the sum assured amount in addition to the other benefits.

Flexible Payout Options

When policyholders require large sums of money in an emergency, a guaranteed income plan provides flexible payout options. It allows a person to receive the money as a lump sum or as a monthly income.

Income Tax Advantages

Every year, a tax deduction under Section 80(C) is available, as is a tax exemption under Section 10(10D) on the maturity proceeds, subject to the terms and conditions.

Who is Eligible for the Life Guaranteed Return Insurance Plan?

Those who are looking for a steady income or a regular income should check an online insurance plan and buy the one which suits their requirement. For example, the Guaranteed Return Insurance Plan or GRIP of Tata AIA Life Insurance is a plan which imparts several benefits. Similarly, there are other plans of different insurance service providers which can be considered too. 

Individuals between the ages of 18 and 60 can purchase them to meet their specific needs. Not only that, but they can concentrate more on their retirement plan with them to gain more benefits. Investors should read the terms and conditions before purchasing guaranteed return insurance policies. 


The guaranteed return insurance plan provides the best possible return Insurance plan that ensures the benefits are safely reaped by the policyholder. Moreover, a guaranteed return insurance plan makes sure that the family of the policyholder is also taken care of in account of any unforeseen situation that might arise.