Traditional Plans in India

In today’s day and age, maintaining financial stability has become quite difficult for most of the individuals.  Understanding the requirement of financial stability in an individual’s life, the insurance companies have come up with guaranteed income plans. The guaranteed income plans are specifically designed to cater to the requirements of the risk-averse investors and offers them the benefit of life insurance along with maturity benefits and regular guaranteed payouts. The guaranteed income plan offers financial security by providing regular income at a 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 the insurance holders are not required to worry about the ups and downs of market; rather they get to enjoy the maximized returns.

Best Traditional Plans in India

Plan Name

Plan Type

Entry Age

Maturity Age

Policy Term

HDFC Life Click2Protect  Plus

Term Plan

18 - 65 years

28 - 75 years

10 - 40 years

ICICI Prudential Cash Advantage

Money Back Plan

0 - 60 years

18 - 80 years

15 - 20 years

HDFC Life Sampoorn Samriddhi Plus Plan

Endowment Plan

30 - 60 years

18 - 75 years

15 - 40 years

SBI Life Smart Money Back Gold Plan

Money Back Plan

4 - 25 years

26 - 70 years

12 - 25 years

SBI Life - Saral Shield

Term Plan

18 - 60 years

65years

5 - 30 years

Aviva i-Life Plan

Term Plan

18 - 55 years

70 years

10 - 35 years

HDFC Life Sanchay Plan

Endowment Plan

30 days - 45 Years

18 - 70 years

15 - 25 years

Canara HSBC OBC Smart Stage MoneyBack Plan

Money Back Plan

8 - 55 years

70 years

15 years

Max Life Guaranteed Monthly Income Plan

Money Back Plan

25 - 65 years

71 years

6 - 11 yeasr

Aegon Life Term Plan

Term Plan

20 - 65 years

75 years

10 - 75 years minus age at entry

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.

Comparison of Returns in Traditional Plans across India

Insurer

Plan Name

Rate of Return

Guarantee

LIC

New Jeevan Anand

3.56%

Partially Guaranteed

LIC

Jeevan Labh

5.15%

Partially Guaranteed

Bajaj

Goal Suraksha

6.29%

Fully Guaranteed

HDFC Life

Sanchay Plus LTI

5.96%

Fully Guaranteed

HDFC Life

Sanchay Plus Guaranteed Income

5.61%

Fully Guaranteed

Max Life

Monthly Income Advantage Plan

5.82%

Partially Guaranteed

HDFC Life

Sanchay

5.71%

Fully Guaranteed

ICICI

Assured Savings Insurance Plan

5.53%

Fully Guaranteed

The above mentioned rate of returns is based on the below mentioned assumptions and the date for Internal Rate of Return (IRR) is taken as 15th August:

Plan Name

Maturity Year

Annual Premium Equivalent (APE)

Premium Paying Term (PPT)

Policy Term

New Jeevan Anand

35 years

Rs.1 Lakh

25 years

25 years

Jeevan Labh

35 years

Rs.1. 56 Lakh

16 years

25 years

Goal Suraksha

35 years

Rs.1 Lakh

5 years

15 years

Sanchay Plus LTI

35 years

Rs.1 lakh

10 years

11 years

Sanchay Plus GI

35 years

Rs.1 Lakh

10 years

11 years

 Max Life MIAP

35 years

Rs.1 Lakh

15 years

25 years

HDFC Life Sanchay

35 years

Rs.1 Lakh

5 years

15 years

ICICI ASIP

35 years

Rs. 1 Lakh

5 years

15 years

No record found.

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