Insurance policies become participatory when policyholders get a share of the surplus of insurers. As for linked products, policyholders get benefits determined by the value of underlying assets like equity or debt. But these guaranteed plans are non-participatory and non-linked products. Insurance companies provide guaranteed benefits when you buy these plans.
Guaranteed return plans are generally considered to be low-risk investments.
Venkatesh Naidu, CEO of Bajaj Capital, said, "While guaranteed return plans may offer a predictable, stable return, they may not offer the same potential for high returns as other investments, such as stocks or mutual funds. These plans may not be the best choice if you want a decent profit in future."
This story is from the January 12, 2023 edition of Mint Mumbai.
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This story is from the January 12, 2023 edition of Mint Mumbai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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