Do You Want Your Money To Grow? Then Invest In Guaranteed Income Plans

 

A worry-free retired life is something everyone dreams of. This becomes possible only with a stable source of revenue that does not fluctuate with the market. Banks and financial institutions offer numerous saving schemes and insurance plans. But they don’t often provide the security one experiences while earning on one’s own.

Getting a plan that matches all your requirements and offering you the security you need in retired life may appear confusing. You have to consider numerous factors like premium, returns, death benefits, etc. The smart choice here is to explore your options in guaranteed income plans.

Such plans ensure a guaranteed income for your family after your retirement or your untimely death.

What are guaranteed income plans?

Guaranteed income plans are a non-participating scheme that offers you a regular income. You pay a fixed amount every year as a premium for an agreed-upon number of years per the scheme. You can decide your age based on your financial strength and age. The insurer determines your premium accordingly. Upon maturity of the plan, you begin receiving a specified amount like a regular salary. The number of years and the amount will depend on the type of plan you chose, the premium you paid and the amount you agreed upon.

Explore your options among guaranteed income plans in India and enjoy the following benefits:

It reduces the risk of returns

People about to retire always have their own apprehensions towards making high-risk investments. They often receive recommendations to invest in the schemes like life insurance policies. These ensure a return for their families in the instance of their untimely death. If you invest in a guaranteed income plan, you don’t have to worry about this. The scheme minimizes the loss of your income when you retire.

The benefit upon the untimely death

In the instance of the unfortunate death of the policy-holder during the insurance tenure, the insured's nominee receives the basic amount promised in the contract. This is in addition to other bonuses the person may have saved. The payout is made, in general, for 15 years. In any other instance, it will continue as per the term mentioned in your insurance policy. If death happens after the end of the premium-paying tenure, the nominee receives the sum assured along with any other benefit as per the contract.

Tax benefits

Your investment here is eligible for tax exemption under Section 80(C) annually. Upon maturity of your policy, your returns are exempt as per Section 10(10D). Know that these exemptions are made available based on the terms and conditions described thereof.

Periodic payments after the first year of premium

You start receiving a fixed amount from the start of the second year of your insurance term. You can determine the interval. The payout remains same through the term of the policy. This provides you with a source of extra income. And you can take care of the small expenses that exceed your monthly budget.

Eligibility requirements

Guaranteed income plans are reserved for the salaried. The minimum age here is 18, and the maximum is 50. And when it comes to insurance tenure, the minimum is 34, and the maximum is 75.

Tips to maximize your returns

Do the following to maximize your returns from your guaranteed income investment scheme:

Repay all your debts: Availing a loan is a breeze for a salaried individual. But debts affect your savings. Repay your debts at the earliest to maximize your returns from your insurance policy.

Plan your retirement in advance: Calculate the expenses you expect during your retirement. Have a clear understanding of your health at the time. It will give you an idea of how much you should aim to save to lead a tension-free life when you grow old.

Prepare for an unexpected emergency: Anything can happen at any time. Having an emergency fund helps you handle it without having to worry about the loss of income it may cause. In a general scenario, it should be equal to the salary of five or six months.

Research and choose from among the numerous guaranteed insurance plans available. You will never regret your choice. See to it that you get it from a reputed insurer.