Guaranteed income plans are ideal choices for those who want financial stability above everything else. They ensure adequate security for long-term financial objectives and greater peace of mind, in terms of planning for retirement. Here are some of the key details you need to know about these plans.
What are Guaranteed Income Plans and How Are They Helpful?
Guaranteed income plans are insurance plans that come with additional benefits of fixed income in the form of quarterly, monthly, or yearly payouts. You can pay an annual premium throughout the entire policy duration as per your financial circumstances and age.
These plans come with tax deductions on premium payments made every year, along with maturity benefits and payouts that are also tax-exempted subject to certain conditions. Guaranteed income and death benefits make for a combination that is appealing to most investors who are averse to risks and do not want to invest in instruments that are influenced by market fluctuations and volatility.
Here are some key aspects that you should know about these plans:
- The returns in these plans are guaranteed and they are ideal for investors who do not wish to take any risks. It also enables better financial planning in advance, particularly for those who wish to maintain their current living standards even after retirement.
- These plans also offer maturity benefits as lump sum amounts in case all the premiums are paid until the conclusion of the policy tenure. The payout and premium choices are also flexible.
- You can customize plans in terms of modifying the plan tenure, payout frequency, the term of paying premiums, and so on. This can be done as per your current and future financial needs and goals.
- Guaranteed income plans also come with adequate life insurance coverage which works as a safety net for your nominees throughout the policy tenure. Some plans also have premium waiver facilities in case of the unfortunate demise of the policyholder for the remainder of the policy duration.
- You can accentuate your policy with helpful riders for additional coverage, including terminal illness, accidental disability and death, and so on. Whenever any such unfortunate event takes place, a lump sum is paid out as per the terms and conditions of the agreement.
Guaranteed Income Plans are a Step to a Better Future
These plans represent the beginning of your journey towards achieving a better financial future. It is not just the tax benefits; you also get maturity benefits, extra bonuses, and flexible plan customization features in the bargain. During the policy term, you can avail a loan against your guaranteed income plan, typically up to a maximum of 90% of the surrender value. But in some plans, this option can be as low as 50% of the surrender value. So plan accordingly. But do go ahead and get insurance without any further delays.