Maintaining financial stability in today’s world is becoming so tough that insurance companies are coming up with guaranteed income plans. These plans are specially designed for coming up with guaranteed plans for risk-averse factors and offering maturity benefits and also regular guaranteed pay-outs. A guaranteed savings insurance plan is essential as part of a life-saving policy with the plan coming up with regular income at a pre-defined percentage. The main purpose of these plans is to receive income either yearly, monthly, or half-yearly. Now, there are certain brackets under which these income plans fall.
- Eligibility of these traditional plans
The guaranteed return plan is for the salaried people falling under the bracket of 18 to 30 years. The policy extension can be made from 10 years to 30 years.
- Features of the plan
- It is a kind of insurance plan providing regular income for a certain specified period between 10 years to 30 years.
- It offers various reversionary bonuses like the terminal bonus as well at the time of maturity. These bonuses act great for all the people wanting to be a part of this income plan.
- It offers various kinds of death benefits as well.
- The benefit of tax exemption is also found in this income plan. By getting tax benefits, so many salaried people are saved from paying extra.
- The term of the policy varies between 10 years to 30 years.
- Benefits of the Guaranteed income plan
- Offering maturity benefits
Right at the time of maturity, the insured will be receiving a reversionary bonus apart from the terminal bonus and if the period of the payout exceeds 15 years, then the insured will be getting the regular amount as per the pre-defined percentage of the total sum assured.
- The income tax benefits
Every person taking this plan gets tax exemptions available under Sec 80(C) and the tax exemption under Sec 10(10D) are also available on maturity proceeds. But this is subject to certain terms and conditions.
- Death benefit
Also, in case of the death of the insured, the nominee of the policy will be getting the basic sum along with the reversionary and terminal bonuses. Even if these payouts are carried out for more than 15 years, then even after the demise of the insured the nominee will be getting the amount.
It comes with additional death benefit rider that means it gives benefits to all the riders who have died in bike accidents. Some insurance plans offer fully guaranteed plans while some provide partial ones. So, be sure of what you are wanting and then move ahead with the same. Compare all the products and choose the best.