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8 Benefits of Guaranteed Income Plan You Must Know

04-06-2022 |

Securing the financial future of your family is the primary motive of every insurance provider. To accommodate different types of financial requirements, insurers have introduced comprehensive life insurance plans. These plans provide flexible features to customise the product based on your needs. The guaranteed1 savings plan is one of the most prominent financial products that can serve your financial needs in this regard. Here are eight benefits of a guaranteed1 income plan you must know.

Before we see the benefits of a guaranteed return income plan, let us understand its meaning.

What is a Guaranteed1 Income Plan?

The guaranteed1 income plan is a complete comprehensive life insurance plan that provides a life cover to protect your family's financial future, guaranteed1 income either at the end of the premium payment term or during the policy term, compound reversionary and terminal bonus2 if any and additional rider# benefits.

You can pay the premium amount for a limited period and pay it monthly, quarterly, semi-annually or annually based on your steady flow income. In addition, you can avail of tax* benefits based on the prevailing income tax* laws.

Benefits of a Guaranteed1 Income Plan




Here are eight benefits of a  guaranteed1 income plan that make it well suited for insurance and savings purposes:

  1. Guaranteed1 income: Apart from providing the life insurance cover, the assured savings insurance plan will provide a guaranteed1 income as a maturity benefit. These guaranteed1 additions are decided during policy inception. Hence, as the maturity benefit is definite, you can accurately plan for your family’s financial commitments. You will have to account for the inflation while considering the maturity benefit required. You can also receive compound reversionary and terminal bonuses2 if the insurance provider has declared them during the policy term based on the policy features.

  2. Life cover: The guaranteed1 return insurance plan provides a life cover that ensures a sum assured to the nominee in case of your unexpected demise. Your nominee can utilise the death benefit appropriately to reduce the financial burden in the future. For example, your family can use it to pay off any debts or for your child’s higher education or marriage.

  3. Rider# options: You can extend the benefits for life insurance by opting for the add-on rider# option. Some prominent rider# options are the waiver of premium rider(UIN: 110A026V02, Linked, Individual, Health Insurance Rider)#etc. For example, the waiver of premium rider# will waive off the future premium payments if you suffer total and permanent disability.

  4. Different payout options: The guaranteed1 savings plan provides different types of payout options. For example, you can receive the payout as a lump sum benefit and utilise it for varied requirements such as paying off liabilities, planning a vacation etc. You can also use it as a regular monthly income if you are planning for your retirement. You can decide on the regular income required based on your current expenses while accounting for the inflation rate.

  5. Long-term benefit: If your family is dependent on your income for their survival, then ensuring their financial security in the future is your responsibility. On the other hand, accomplishing your personal financial goals such as pursuing higher education, purchasing a new car etc., are also important. To ensure both these financial commitments are satisfied, you can put efforts  in a savings insurance plan. The guaranteed1 return plan provides the option to stay attached to the plan in the longer term. The longer you stay attached, the better are the returns earned. Also, when you start investing early in life, you can choose a longer policy term with a cheaper premium rate.

  6. Safe option: As the returns are guaranteed1, the savings plan provides a safer mode of investment. Unlike the financial markets, there is no element of risk involved. Hence, you can invest a bulk of your hard-earned income for your savings needs. You can get in touch with the Tata AIA Life Insurance customer service team will help you choose the best options to secure your investment while receiving higher returns in the long run.

  7. Tax* benefits: The premium amount paid towards the guaranteed1 return income plan qualifies for tax* deduction under the Income Tax Act, 1961. You will receive significant tax* benefits while accumulating a good lump sum.

  8. Flexible features: The guaranteed1 income plan provides flexible features that can modify the plan based on your individual preferences. For example, you can pay the premium amount for the policy monthly, quarterly, half-yearly or annually based on your steady flow income. You can also choose to pay the premium amount for a limited period.

How should You Invest in the Guaranteed Return Income Plan to Maximise the Benefits?

After understanding the benefits of the savings plan, it is equally important to know how you should maximise them for your financial needs.

  1. Understand your financial status and make a budget based on your current income and expenses.

  2. List your short-term and long-term financial goals.

  3. Make a long-term financial plan based on your income, current budget and financial goals. Ensure to allocate an amount for the savings insurance plan.

  4. Decide the premium based on the financial plan. Decide the premium based on the financial plan. TATA AIA Savings plans offer a range of online insurance calculators to try different combinations of the premium and policy term to choose the best option that will suit your needs.

Conclusion

The guaranteed return income plan provides insurance for life cover and savings. You can receive the payout as a lump sum, as a regular income plan or as a combination of both. In addition, it provides flexible features to customise the plan for individual needs. It is a safe long-term investment that can provide tax* benefits too. If you want a peaceful retirement or financial support to supplement your income, then choose to invest in a guaranteed1 return income plan for the best and the finest returns!

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Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

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