Maintaining financial stability, now a days, is becoming quite difficult. Understanding the need of financial stability, insurers have come up with guaranteed income plan. Catering to the risk-averse investors, guaranteed income plans offer life insurance along with maturity benefits and regular guaranteed payouts This plan offers financial security by providing regular income that is pre-defined percentage (selected by insured and insurer) of Sum Assured. The USP of the plan is that one can receive the income yearly, half-yearly, quarterly or monthly. This innovative insurance product is a traditional plan that comes with bonus facility where you need not worry about the ups and downs of market, rather you get to enjoy the maximized returns.
Guaranteed Income Plan is designed for salaried people who fall in the age bracket of 18-60 and policy term for them extends from 10 yrs to 30 yrs.
At the time of maturity, insured is provided simple reversionary bonus along with terminal bonus, if any. If there is a payout period (approx. 15 years), you will be paid regular amount which is pre-defined percentage of sum assured.
In case of unfortunate event of death of the insured during premium paying term, the nominee is handed over the basic sum assured together with reversionary bonuses and terminal bonus, if any. And, the payouts are carried for the next 15 years or as mentioned in the policy.
In case of demise after premium paying term or during the payout period, the nominee receives the sum assured along with other benefits and the lump sum of payout left in the insured's account.
Tax deduction under Section 80(C) is available every year and tax exemption under Section 10(10D) is available on the Maturity Proceeds subjected to the terms and conditions.
This plan comes with an inbuilt rider i.e. Accidental Death Benefit Rider
What are Traditional Plans?
Traditional Plan is a conventional form of insurance which provides financial security to the insured's family in case of an eventuality and maturity amount if the insured survives the policy term. A major chunk of investment goes into debt instruments so as to secure the returns.
Why Invest in Traditional Plans?
If you cannot bear the turns and tumbles of equity market, then investing in Traditional Plans is the right thing for you. Put simply, it is an ideal investment for those who have a low risk appetite and looking for fixed returns without riding the lows and highs of market.
How much do I Need to Invest?
That totally depends on your personal needs and priorities. The investment amount is decided upon tenure of investment, investment goals and risk appetite. Since traditional plan works best in the long term, starting early and staying longer is the ideal way to go about it.
What are the Key Features of Traditional Plans?
Traditional plans promise both the risk cover and returns. The returns do not dip below a minimum guaranteed NAV. Charges involves are nominal. Allocation and switching between funds is at the discretion of the insurance company. The insured gets to enjoy the tax-benefits.
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