Business Standard

Par for the course: Lock in returns for long term with non-par plans

Avoid these plans if you require liquidity in the short run

The insurance regulator is currently looking into the proposal, an official said

Sanjay Kumar SinghBindisha Sarang
Debt mutual funds lost to the indexation benefit on long-term capital gains from the start of this financial year (2023-24). Many investors are gravitating towards non-participating (non-par) plans of insurance companies in the wake of this change in tax rules.

How do these plans work?

Traditional (non-unit linked) plans are of two types: participating (par) and non-par. Returns of par plans are not guaranteed as they depend on insurer performance.

“Non-par plans don’t participate in the insurer’s profits. Their returns are also not market-linked. Hence, they can offer guaranteed returns,” says Deepesh Raghaw, Securities and Exchange Board of India-registered investment

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Apr 26 2023 | 7:41 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to