• Choose From

    20+ Insurers

  • Plans Starting at

    ₹ 490/month*

  • Policies Sold

    0

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

*Please note that the quotes shown will be from our partners

Guaranteed or Non-Guaranteed – Pick You Insurance Policy Wisely 

Let’s understand the meaning of guarantee first. When a company grants you a product or service guarantee, they give you a formal/written assurance that the risk related to the failure of the product or service shall be borne by the company. So a product with a guarantee is surely a lucrative deal for the customer, however it must be noted that not all guarantees come with transparent clauses. Therefore, it is essential that a customer must thoroughly understand their need for the product and study the pros and cons of the guarantee associated with it.

There are many kinds of life insurance policies available in the market. One commonality is they all cover financial risks associated withdeath of the policy holder. But there are other distinguishing factors such as a guaranteed premium amount and a non-guaranteed premium that you must consider to best suit your needs. For this, you must take into account, your financial needs, number of dependents or family members, your health status, income and other related aspects.

Guaranteed life insurance policy

A guaranteed life insurance policy guarantees continuity of the cover as long as the insured individual is flawlessly regular with timely payment of premium. This means the policy will not lapse until a premium payment is missed. A distinctive benefit this policy offers is that the premium amount will remain the same throughout – even if the insurer raises its fees and other charges during the policy term. 

Non-guaranteed life insurance policy

A non-guaranteed life insurance policy is a limited term insurance policy where the premium amount remains unpredictable. That means the premium amount you start to pay in the first few years of the policy may hike up based on calculations in line with market scenarios. Therefore the premium amount is not guaranteed to remain same throughout the policy tenure. For example, if you procure a non-guarantee insurance policy for 10 years, you may be paying a fixed premium amount for the first five years. For the next five years, you may have to pay a higher premium.

In a nutshell

When it comes to something as crucial as life insurance policy, it is essential to compare all of its kinds in detail. Not all policies are meant for all.

You must find out what is best for you in accordance with your current financial status and what you desire for your family in case of any eventuality. For example, if you are looking for a greater financial security for your family and the freedom to invest a sizable amount in a potentially uncertain business model that may not work well after you expire– a guaranteed policy will cover your risks better than a non-guaranteed policy.  

Written By: PolicyBazaar - Updated: 03 June 2020
You May Also Want to Know About
How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
How to Check LIC Policy Status, Details, Statement via Online/SMS/Call Last year, Mr. Rajiv Verma bought a Child LIC policy to provide financial security for his kid’s future. However, due to time constraints or negligence, he forgot to pay its ...
LIC Online Payment - A Complete Guide
LIC Payment Process through LIC Online Portal, Banks & Cards India’s only public sector investor, LIC is the most recognized and trustworthy name in the Indian life insurance domain. With its broad variety of worthwhile life insurance inst...
How to Check PLI Status?
How to Check PLI Status? Dating back to February, 1884, PLI (Postal Life Insurance) is one of the oldest life insurers in the country. Started as a welfare scheme to provide benefits to the employees of the Postal department, PLI has really come...
LIC Login Online: Step-by-Step Login Process to LIC website
LIC Login Online: Step-by-Step Login Process to LIC website The LIC login portal is user-friendly and the customers can easily avail the online facilities at the comfort of their homes or offices from anywhere in the world. All you need to do is...
Life Insurance: Checking Policy Status
Life Insurance: Checking Policy Status Buying life insurance policy is the first step towards building a corpus amount for the future. It takes many permutations and combinations to actually choose a life insurance policy, analyzing its benefits...