Life is unpredictable, and securing your loved one’s financial well-being is a priority. One effective way to achieve this is by buying guaranteed income plans, a unique blend of life insurance and savings that provides a safety net for your family’s future. Let’s discuss what these plans include and why you should consider incorporating them into your financial portfolio.
What is a Guaranteed Income Plan?
A guaranteed income plan is a comprehensive life insurance policy designed to safeguard your family’s financial future. It offers dual benefits, combining a life cover that protects against the uncertainties of life with a guaranteed return at maturity. This return can be received as a regular income for a specified period or throughout your entire life.
Why Should You Buy One?
1. Guaranteed Returns:
Unlike other investment options where returns are subject to market fluctuations, the returns in a guaranteed income plan are predetermined at the policy’s inception. This stability provides peace of mind, ensuring a reliable source of income without the uncertainties associated with market-driven investments.
2. Dual Benefits:
With this plan, you enjoy the dual advantage of a guaranteed return at maturity and a life cover. The life cover serves as a financial safety net for your family, allowing them to fulfill their goals even in your absence. Including add-on riders further enhances the protection, making it a holistic solution for savings and insurance needs.
Recognizing the diverse financial needs of individuals, insurers offer flexibility in guaranteed income plans. Policyholders can choose how they receive the guaranteed returns – as a regular income, a lump sum, or a combination of both. Additionally, the flexibility extends to the frequency of payouts, with options for monthly or annual disbursements.
3. Accomplishing Financial Goals:
Whether starting a business, funding a child’s education, or any other financial goal, a well-structured guaranteed income plan provides the means to achieve them. By ensuring a steady flow of income, even during critical periods, you can navigate life’s challenges and accomplish your goals.
4. Long-Term Investment:
Investing in this plan for the long term yields significant benefits. Opting for an extended policy tenure reduces annual premiums and allows for accumulating a substantial corpus. This accumulated fund, coupled with regular income, is a reliable financial resource to manage routine expenses and unforeseen commitments.
5. Retirement Benefits:
Planning for a secure retirement becomes seamless with a guaranteed income plan. These plans ensure a comfortable and worry-free retirement by aligning the regular income with anticipated post-retirement expenses and factoring in inflation rates. The life cover component continues to provide financial security for your family during the policy tenure.
6. Tax Benefits:
The financial prudence of investing in guaranteed income plans is further amplified by tax benefits. The premium paid qualifies for a tax deduction under Section 80C, and the payouts enjoy tax exemption under Section 10(10D) of the Income Tax Act 1961. This dual tax advantage makes these plans an attractive option for tax-conscious individuals.
Guaranteed income plans emerge as a well-rounded financial solution that addresses both immediate and future needs. By securing a guaranteed return, providing life cover, and offering flexibility, these plans pave the way for a financially resilient and fulfilling future. Safeguard your loved ones and ensure financial security with guaranteed income plans.
Aviva, one of the leading life insurance companies in India, offers a range of guaranteed income plans catering to diverse needs and aspirations. Key features include:
- Assured returns with periodic and one-time payouts
- Multiple Payout Options, such as Early Income, Deferred Income, or Lump Sum
- Various payment choices are available
- Ensured increments throughout the policy duration
- Additional benefits for policyholder loyalty
- Tax advantages
- Comprehensive coverage with both death and maturity benefits
- Flexible policy terms ranging from 5 to 30 years
- Entry Age eligibility spans from 8 to 60 years