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.
 

 

L&C/Advt/2023/Feb/0681