Traditional Plans in India

Best Traditional Plans in India

Eligibility

Guaranteed Income Plans are designed for salaried people who fall in the age bracket of 18-60 years and policy term for them extends from 10 years to 30 years.

Features

• It is a variant of life Insurance plan that offers regular income for a specified term varying from 10-30 years.
• Offers vested reversionary bonus along with terminal bonus, if any, at the time of maturity.
• Provides death benefits as well as maturity benefits.
• Provides the benefit of tax exemption.
• Policy term varies from 10-30 years.

Benefits of Guaranteed Income Plans

• Maturity Benefit

  At the time of maturity, the life insured receives the simple reversionary bonus along with terminal bonus, if any. In case, the payout period is approximately 15 years, then the insured is paid the regular amount which is pre-defined percentage of sum assured.

• Death benefit

  In case of unfortunate event of death of the insured during premium paying term, the nominee of the policy receives the basic sum assured amount along with the 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 of the insured after premium paying term or during the payout period, the nominee receives the sum assured amount along with the other benefits.

• Income Tax Benefits

  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.

• Additional Rider

  The traditional plan comes with an inbuilt rider i.e. Accidental Death Benefit Rider.

  There are some traditional insurance plans, which offer fully guaranteed returns, whereas the other plans offer partially guaranteed returns. The products available at Policybazaar are fully guaranteed in nature. In the below mentioned table we have shown a comparison that indicates the rate of return for few traditional products, which is computed at a sample modal point. In this table different plans have different pay terms and policy terms and can be suitable for different needs. Thus, this table is only for the purpose of illustration.

Here is how the rate of return of Sanchay Plus product have reduced over last few months due to declining interest rate regime in India