Traditional Plans in India
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.
Benefits of Guaranteed Income Plans
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.
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.
This plan comes with an inbuilt rider i.e. Accidental Death Benefit Rider.
Best Financial Calculators:
Human Life Value Calculator
Income Tax Calculator