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A Detailed Guide to Guaranteed Income Savings Plans in India

When it comes to securing your future financially, most investors look for risk-free investments and savings plans that can offer them some kind of guarantee1 against the possibility of loss or poor returns. While risk remains to be an indispensable component of the market, there are some savings and investment options that can offer an increased level of safety and financial security. A guaranteed1 income plan is one such great tool in this regard. These kinds of plans offer several benefits and useful features.
 

Here’s all that you need to know about a guaranteed1 income plan.

 

What is a guaranteed1 income plan?
 

Guaranteed1 income savings plans are designed to suit the needs of investors with a less-risk appetite. These plans offer twin benefits in the form of maturity and death benefits from a life insurance policy and regular guaranteed1 payouts to keep you financially afloat. The reason why these plans are known as guaranteed1 plans is that they offer the prospect of a definite regular income yearly, monthly, or quarterly, as desired by the policyholder or nominee.

 

What are the features of a guaranteed1 income plan?
 

Here are some features of a guaranteed1 income savings plan:
 

  • It offers wholesome features: Guaranteed1 income savings plans are comprehensive plans that offer life coverage, maturity benefits, and guaranteed1 returns.

  • It is suitable for a wide age group: As per the eligibility rules, the minimum age limit to safeguard in a guaranteed1 income plan is 18 years and the maximum age limit to safeguard in a guaranteed1 income plan is 60 years. This covers a wide section of people and is suitable at various stages in life.

  • It provides you with a considerably long and flexible policy term: The policy term for such plans varies between 10 years and 30 years and can be chosen as per your requirements and goals.

  • It provides tax* benefits: These plans offer many tax* benefits on the premiums paid and maturity benefits received.

     

What are the advantages of a guaranteed1 income plan?
 


There are many benefits of a guaranteed1 income plan. For instance:
 

  • You get life insurance: The relevance and importance of life insurance cannot be stressed upon enough in today’s day and age. A comprehensive life insurance policy is one of the best instruments that you can use to safeguard the future interests of your family. A guaranteed1 income plan provides you with life insurance coverage, thereby ensuring that your loved ones continue to live a dignified life even in your absence.

  • You get the maturity benefit: Apart from the sum assured, the insurance company also pays you a maturity benefit, inclusive of all bonuses2 accrued over time. This can be a significant addition to your savings and help you maintain more financial liquidity.

  • You can choose between various options: You can choose the best assured income plan as per your income, budget, family composition and dependents, and future goals. Guaranteed1 income plans offer different policies, such as endowment plans, whole life income plans, regular income plans, etc.

  • You can add various riders#: Just like in a life insurance plan, you can add different riders to extend the scope of your coverage. The choice of riders# would differ for each insurance provider and plan. However, the most common ones include a critical illness cover, an accidental death rider, a waiver of premium benefit, and many more.

  • You can enjoy tax* benefits: The best assured income plan not only offers an opportunity to create a long-term savings corpus but also provides you with tax* benefits. The premiums paid towards a guaranteed1 income plan qualify for tax* deductions under Section 80C of the Income Tax Act of 1961. The maturity benefit is also exempt from income tax* under Section 10D of the Income Tax Act of 1961. This gives you increased savings.

  • You can earn more than investing in a fixed deposit: Given the fact that fixed deposits, also a guaranteed1 income tool, provide you with a taxable income at the end of the term, a guaranteed1 income plan can be more beneficial in the long run. In a guaranteed1 income plan, the maturity benefit is tax*-exempt, and the death benefit can be used by your dependents in your absence.

 

Based on these benefits and features, you can decide which policy gives maximum returns. Remember to look for a plan that offers a combination of these aspects and is best suited to your needs and those of your loved ones.

 

Final words
 

A guaranteed1 income plan is a suitable product for you if you are looking for some stability along with capital appreciation. The safety of insurance, along with the promise of assured returns, make this plan a tailor-made option for risk-averse investors. However, since this is a long-term commitment, it is advisable to thoroughly check the features of the plan and pick an insurance provider with a dependable reputation.
 

 

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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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Disclaimer

  • Insurance cover is available under the product.
  • The products are underwritten by Tata AIA Life Insurance Company Ltd.
  • The plans are not a guaranteed issuance plan, and they will be subject to Company’s underwriting and acceptance.
  • For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.
  • *Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.
  • 1Guaranteed Returns/Payouts depend on Plan Option, Policy Term, Premium Payment Term and Age at entry.
  • #Riders are not mandatory and are available for a nominal extra cost. For more details on the benefits, premiums and exclusions under the riders please refer to the Rider Brochure or contact our Insurance Advisor or visit our nearest branch office.
  • 2These bonuses are not guaranteed in nature. The Company may declare Cash Bonus rate annually in advance. The Cash Bonuses if declared, will be applicable provided all due premiums have been paid.