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Guaranteed Income Plans: Why Should You Buy This?

01-08-2022 |

The global world around us is turning uncertain in the political and economic domain. Therefore, the cost of living is increasing drastically. With changes in lifestyle and desires, you would want to experience everything around you. But unfortunately, at the end of the month, you tend to slow down on the expenses considering the lack of necessary financial resources.

 

So, what essentially should be the driving force for your financial investments? Undoubtedly, it is the guaranteed1 regular income. Insurance providers offer guaranteed1 income plans to help you combine your savings and life insurance needs. Here is a detail about it and why you should buy it for your financial security.



What is a Guaranteed1 Income Plan?

A guaranteed1 income plan is a comprehensive life insurance plan that provides a life cover that will protect your family in the event of your unexpected death and a guaranteed1 return at maturity. You can avail of the guaranteed1 return as a regular income for a defined income period or whole life, depending on your financial commitments. Therefore, you can combine your life insurance and savings goals.



Why Should You Buy Guaranteed1 Income Plans?

Life insurance policies with savings benefits offer a range of features. These features identify the reasons why you should save in guaranteed1 income plans. Here is a detail about it for your understanding.

 

  • Guaranteed1 income - The primary purpose of saving in a financial instrument is to generate a guaranteed1 return. While the different investment options provide returns, it is always not guaranteed1. For example, if you choose to invest in the financial securities market, as the returns depend on market conditions, they cannot be guaranteed1.

    In a guaranteed1 income plan, you and your insurance provider will decide the guaranteed1 returns during policy inception. And, without any change in the value, you can receive them at the end of the policy tenure.

  • Dual benefits - With a guaranteed 1 income plan, you will get a dual benefit of guaranteed return on the maturity of the plan and life cover. With a life cover, your family can fulfil their financial goals even in your absence.

    With the guaranteed1 income plan, you can ensure the life cover with add-on riders# and the savings benefit to protect your family and accomplish your future financial goals effectively.

  • Flexibility - Insurers introduce flexible features in life insurance policies to customise them for your personal financial needs. For example, you can choose to receive the guaranteed1 return at maturity as a regular income, a combination of lump sum and regular income or lump sum.

    And, if you choose to receive it as a regular income, you can choose between receiving it monthly or annually.

  • Accomplish financial goals - When you get married and happen to be a member of a big joint family, you will always have critical financial difficulties throughout your life. In such a scenario, accomplishing your personal financial goals gets you stranded. With adequate financial planning, you can achieve your money goals.

    For example, suppose you wish to start a new business after 6 years. In that case, you need to ensure a regular financial income to satisfy your family's needs until you stabilise in the business, making a steady flow of income.

  • Long-term investment - A savings benefit will always yield a return when you invest in it for a longer term. For example, when you purchase a guaranteed1 income plan, you can choose a longer policy tenure to reduce the premium annually while accumulating a huge corpus for the maturity returns. With the accumulated fund and the regular income, you can manage your routine expenses or any other family commitments and reduce your financial burden.

  • Retirement benefit - You can always plan for a happy retirement with a well-planned guaranteed1 income plan. Based on your current lifestyle and expenses, you can decide on the necessary regular income considering the inflation rate and invest in the guaranteed1 income plan accordingly. It will yield the necessary income post retirement while ensuring a life cover benefit to secure your family during the policy tenure.

  • Tax* benefits - When you save in the guaranteed1 income plan, the premium will qualify for a tax* deduction under Section 80C, and the payouts will qualify for a tax* exemption under Section 10(10D) of the Income Tax Act, 1961.


Conclusion

Financial investments should always help you save funds for the future and ensure financial security in the long term. A guaranteed1 income plan is a financial instrument that provides a life cover and a guaranteed1 income from maturity. It is highly secure and flexible for a long-term investment.

You can decide on your financial goals and the extent of regular income required after a certain period of your life and invest in it accordingly. It can help you secure your family and accomplish your money goals while saving on taxes. So, decide on your financial requirements and choose your guaranteed1 income plan wisely.

L&C/Advt/2022/Jul/1744

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Need more information?

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TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

Looking to get a new plan? 

Connect with us now

+91

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

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Read More
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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!

View all posts by Tata AIA Life Insurance

Frequently Asked Questions

Who should purchase a guaranteed1 income plan?

People requiring funds for specific needs after a certain period in their life, such as starting a new business, purchasing a new house, paying for a child's higher education, or retirement, need to purchase a guaranteed1 income plan to accomplish all the financial goals timely. 

What are the tax* benefits associated with a guaranteed1 income plan?

The annual premium will qualify for a tax* deduction of up to ₹1,50,000 under Section 80C, and the payout will qualify for a tax* exemption under Section 10(10D) of the Income Tax Act, 1961. 

Disclaimers

  • 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 it will be subject to Company’s underwriting and acceptance.
  • For more details on risk factors, terms and conditions please read 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.
  • #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.
  • 1Guaranteed Returns/Payouts depend on Plan Option, Policy Term, Premium Payment Term and Age at entry

Need more information?

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TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

Looking to get a new plan? 

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TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.