Guaranteed return plans see renewed interest

While they offer assured returns, you may miss out on any upside when interest rates rise

Insurance is meant to provide protection against risk. That is why products offering guaranteed returns are popular, as they offer the protection of a stable income. Given that last year equity markets were volatile and interest rates were in a downward trend, insurers saw renewed focus in such policies. 

Guaranteed return plans that offer an assured income are a win-win for both the insurance company as well as the customer, says Karthik Raman, chief marketing officer, head-products and strategy, IDBI Federal Life. Customers get returns that are guaranteed irrespective of whether interest rate movement or equity markets. For companies the