Guaranteed Income Plans: A pillar of support in volatile markets

Investing in markets carries its own set of risks. It comes with a certain degree of volatility that may impact the returns you expect from your investments. Market volatility can be triggered on account of various reasons such as localized government policies, public sentiment, national and international events and the global economy at large. These factors are all unpredictable, and consequently, the returns you can expect from the markets may also vary.

If you are a risk-averse investor, market volatility can create anxiety and cause you to rethink your investment decisions. But with a little bit of foresight and planning, you can reduce the risk exposure in your portfolio and protect your money during volatile market phases. Safer investment options like guaranteed income plans can be particularly helpful here.

How can guaranteed income plans protect you in volatile market situations?

Having exposure to equity is essential for fulfilling long-term goals. However, depending on age and related factors, one needs to diversify their portfolio to reduce volatility. Guaranteed return plans prove to be an excellent option if one has already invested in equity markets through various other instruments.

There are many benefits one may enjoy by diversifying with guaranteed income plans, especially for those who are inclined to invest in less-risk and safer investments.

They offer assured returns

Guaranteed income plans are life insurance plans that offer a specific amount as regular income to policyholders for a pre-decided time period. This is in addition to the plan offering life cover. Some plans also offer return of premium features that are designed to give policyholders all the premiums paid till the maturity of the policy. The amount of income payable under these plans is calculated as a percentage of the sum assured or the annualized premium. The fact that these returns are guaranteed can help policyholders be assured of some income in the future on a regular basis like monthly, or…

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