How Can A Guaranteed Returns Plan Help You Buy Your Dream Home?
How Can A Guaranteed Returns Plan Help You Buy Your Dream Home?
12/30/21 9:12 AM
Buying a house of your dreams is a long-sought desire. Your house is your place of comfort, a place you can call your own and a place where you build your family.
Moreover, given the easy availability of home and personal loans, buying a house has become even easier. When you take a loan, you must pay regular monthly instalments with added interest, which can get extremely stressful and monetarily burdening.
But this does not mean that you must forgo your dream to buy a house. Instead, you can find a safe investment option that assists you in buying the dream home while also securing your financial present and future.
A great way to do this is to invest in a guaranteed return insurance plan.
What is a guaranteed returns plan?
A guaranteed plan is a non-participating, non-linked, individual life insurance-cum-savings scheme in India that offers a life insurance cover along with a guaranteed, defined return. The returns from the plan can be easily used to fulfil your long-term goals, like buying the house of your dreams. You also have an option to get your returns in the form of regular income throughout a defined policy term or as part of the maturity proceeds.
A guaranteed savings insurance plan help you develop a financial discipline while also providing attractive and risk-free investment returns from your funds in the long run. Moreover, the comprehensive insurance policy helps you secure your family against any unfortunate event causing your absence.
A guaranteed returns insurance plan is also tax-friendly. The premiums you pay in this policy up to ₹1.5 lakhs are deductible from taxes under Section 80C of the Income Tax Act, 1961. Further, the maturity proceeds and life cover received under the plan are exempt from tax under Section 10(10D).
Thus, the guaranteed money-savings plans are the best savings plan for buying your dream house.
How does a guaranteed returns plan enable you to buy the house of your dreams?
Owning a home is a satisfying feeling. Your home is more than brick and mortar; it is your safe haven and something you invest in financially and emotionally. However, the feeling of buying a house is more disturbing than pleasing if you have not chalked out how would you finance your house.
Hence, a guaranteed returns investment plan is a great choice when it comes to fulfilling your long-term goals. The plan offers a comprehensive life cover along with assured returns on the policy. You precisely know what kind of returns you will get as per your investments. This helps you plan more wisely to buy the house of your dreams. You can set your targets and choose a policy sum that will be sufficient in the long-term to buy the house you desire. On average, if you start saving at the age of 25 in a guaranteed savings plan, you will be able to buy the house you wish for in the next 8-10 years.
Moreover, a guaranteed savings plan prevents the money that you would otherwise invest in a separate insurance policy. As the primary breadwinner of your family, you are worried about the financial security of your loved ones. You want to make sure they are protected. Hence, buying an insurance cover is more of a necessity than a choice. But, when you invest in a guaranteed returns plan, you also get a comprehensive insurance cover along with guaranteed returns on your policy. With this insurance policy, you save on the cost of a separate insurance plan. This helps you save more to buy the house of your dreams.
You can use the payouts of your guaranteed money-savings plan in multiple ways:
- If you have invested for the long term and the returns are significant, you can pay a significant portion of the costs to buy your house from your maturity payout. This way, you do not have to take out a huge home loan.
- If you have invested for the short term, the small payout can serve as your initial down payment. This ensures that you do not disturb other savings or liquid funds to pay the down payment.
- If you have already taken a loan, the regular boosters and payouts from the plan can help you repay the loan quickly.
- Moreover, the life cover component of the guaranteed savings insurance plans protects your family from loan repayment. They can use the death payout to repay the loan and live a stress-free and debt-free life.
Choose Edelweiss Tokio Life GCAP – A guaranteed returns plan to fulfil your dream of buying a home!
Edelweiss Tokio Life GCAP from Edelweiss Life Insurance understands your emotions and hence, bring you the ultimate plan for your needs. The GCAP policy offers guaranteed returns and a life cover to adequately support your requirements. The plan gives you defined guaranteed returns on your investment no matter the circumstances. You precisely know how much you are getting from the policy, which enables you to plan your future goals like buying a house more wisely.
Apart from providing assured pre-defined returns, the GCAP plan also rewards its loyal patrons. You also get guaranteed accrual additions (GAA) from the ninth policy year. Moreover, the premiums for the policy are highly affordable, starting at only ₹1,500 per month. This ensures that the Edelweiss GCAP plan fits every budget, providing more people with an opportunity to realise their financial goals like buying a home.
With all these benefits, the Edelweiss Tokio Life GCAP plan offers a comprehensive life cover as well as several riders to enhance your insurance coverage. These riders include:
- Critical illness rider: In this rider, you get a lump sum payment to cover any expenses diagnosed with any one of the 12 critical illnesses. These include cancer, stroke, bone marrow transplant, heart attack, etc.
- Waiver of premiums: In case you are diagnosed with a listed critical illness or suffer from a permanent disability due to an accident, the Edelweiss GCAP waives off payment of all future premiums if you choose the Waiver of Premium add-on rider.
- Income benefit rider: This rider enables you to provide regular monthly income for your family so that they can manage their expenses even when you are no longer around to support them financially.
- Accidental death benefit rider: In this option, your family gets additional financial coverage in case of your death because of an accident.
- Accidental Total and permanent disability rider: In this rider, you get a lump sum benefit to managing your expenses in case of total or permanent disability due to an accident.
- Payor waiver benefit rider: In this rider, if the proposer of the plan suffers from an unfortunate death or disability, critical illness, etc., all future premiums will be waived off while the policy will continue to provide benefits.
The Edelweiss GCAP plan allows you to get a loan to cover an urgent expense. The best part is that the policy allows you extreme flexibility. You can customise the plan as per your needs and choose the policy term, premium paying tenure as well as premium payment frequency. Further, all tax benefits under Section 80C and Section 10(10D) also apply to this guaranteed return insurance plan. This allows you to reduce your tax charges annually while saving more for a down payment of your house.