Want guaranteed long-term returns? Consider non-par insurance plans

Get an expert to calculate internal rate of return; ensure premium doesn't exceed Rs 5 lakh annually for tax-free return

The chairman of the Life Insurance Corporation (LIC) of India, Siddhartha Mohanty, in a recent interview to Business Standard, said that the insurer is keen to enhance the premium contribution from non-participating (non-par) plans in its premium mix. Buyers need to make an informed choice when opting for these insurance plans.

Guaranteed-return plans
 

Non-par plans do not participate in the insurer’s profits or losses. 
 

“The plan is a low-risk insurance-cum-investment tool that offers guaranteed benefits at pre-determined intervals. Unlike participating (par) plans, they do not offer bonuses or dividend payouts based on the life insurer’s business performance,” says Anup Seth,