Top Benefits and Features of Life Insurance Guaranteed Return Plans in India
Life insurance policies have different types that aim at catering to the needs of customers. On the other hand, people should know more about them in detail before investing money. Buying a new life insurance plan involves several challenges and one should evaluate them with great attention. It is wise to select life insurance plans with guaranteed returns or term insurance with returns that will help generate more income. Another thing is that a smart value income plan shows methods to accomplish goals in financial planning to lead a comfortable life when it comes to emergencies.
What is a Guaranteed Monthly Income Plan?
A guaranteed income plan is a non-participating monthly income plan offered by an insurance company. It provides fixed and guaranteed returns to an insured person along with insurance coverage. The policyholders have to pay yearly premiums after choosing the tenure. An insurer will decide the tenure of a policyholder based on age and financial background. The plan allows policyholders to receive guaranteed payouts once the policy gets matured. A guaranteed income insurance plan works similar to the monthly income earned by a person depending on the insurance coverage premiums and sum assured amount.
What are the Features of Life Insurance Guaranteed Return Plans?
Here we have listed out the top 5 features of guaranteed return plans in India as mentioned below:-
- Tax-Free Monthly Payouts: The guaranteed return plan enables policyholders to get monthly income payouts when they complete the premium payments. Moreover, the money obtained from a smart value income plan is eligible to get tax exemptions under the income tax act 1961. This will help a lot to save more money.
- Doubles the Income: The payout period in the best-guaranteed income plan has two parts and policyholders should know more about them in detail. A policyholder will receive the assured income every month in the first part. The second part involves doubling the income amount when the first half of the tenure gets finished.
- Assured Protection: A policyholder will get a death benefit under the guaranteed return investment plan which gives ways to claim the amount when he/she is not alive. Not only that, a beneficiary may pick the payout period based on the choices. He/she can receive a payout as a lump sum amount or an income of 10 years after the death of a policyholder.
- Immediate Payout: Unlike a traditional plan, an insurance savings plan enables a policyholder to acquire the payouts as soon as they complete paying the premium plans. It gives ways to receive the sum assured through payouts that will increase the income.
- Flexible Payout Options: A guaranteed income plan offers flexible payout options for policyholders when they require large funds in emergencies. It enables a person to get the amount as a lump-sum amount or in the form of monthly income.
What are the benefits of the Best Guaranteed Return Plan?
Here we have listed out the top 6 benefits of guaranteed return plans in India as mentioned below:-
- Maturity Benefit: Preparing for long-term financial planning can be difficult for most people due to risks and other factors. A guaranteed income plan provides ways to save more amounts through maturity benefits with lump-sum returns. Such an insurance savings plan provides methods to manage any urgent financial needs that require a big budget.
- Second Income Source: The primary advantage of this plan is that it allows a policyholder to take care of expenses through a regular income option. It gives ways to plan retirement life with ease that will help lead a trouble-free life. It is therefore also referred to as a guaranteed pension plan.
- Financial Security to a Family: A guaranteed return insurance plan offers financial security to a family to ensure peace of mind from unexpected events. It is the best option for families who depend mainly on a sole person for their financial needs. Many banks and insurance companies waive premiums for the rest of the duration of the policy during the death of a policyholder.
- Loan Benefits: A policyholder can use the plan for getting loans when it acquires the surrender value. It makes feasible methods to avail a loan amount to 90% of the surrender value. Anyone who wants to need immediate money can benefit more from a guaranteed return insurance plan that will help accomplish goals to a large extent.
- Flexible Terms: A guaranteed monthly income plan is a customized and flexible option available for customers in the markets. It allows a policyholder to modify the terms depending on the needs that will cater to his/her present and future needs.
- Riders: A guaranteed income insurance plan provides the option to combine additional riders based on the choices. It will help get additional coverage and safety to manage financial troubles effectively. The riders allow a policyholder to get coverage for accidental death, expensive medical bills, and serious illnesses.
Who can Buy Guaranteed Income Plans?
The insurance plans with guaranteed returns are ideal for those who want to get assured income. Any individuals who are in the age group 18-60 years can purchase them for meeting exact needs. Not only that, they can focus more on their retirement plan properly with them to gain more advantages.
While buying an assured income plan, investors should read the terms and conditions which will help make an informed decision. Several insurance companies in India such as HDFC, Max life, LIC, and SBI offer guaranteed plans for investors in the markets at affordable prices. At the same time, they need a complete evaluation before investing money. Most insurers offer plans at affordable prices which satisfy the needs of policy buyers. A guaranteed plan is suitable for those who want to overcome financial crunches during emergencies.
Financial constraints may happen anytime in the life of a person that can lead to several problems. Moreover, the sudden demise of an earning member will affect a family in several ways. Buying a guaranteed income plan allows investors to get life protection as well as a steady stream of fixed returns. It even lets a family not compromise when a policyholder is not alive. Choosing the right type of guaranteed return plan enables policyholders to streamline the income for a future life that will help gain more advantages. It also helps a policyholder to reduce the financial burden when it comes to emergencies and enables him/her to ensure stability in life.