Everyone wants a tension-free life. They want to secure their future, especially when they will retire. Financial planning is essential in every human’s life.
As soon as you get a job, you must start saving money for your future expenses. Many insurance companies will provide great term insurance, but is term insurance providing you with a sense of security and peace of mind in old age?
You will always love to have cash flow every month, just as you like it in your job. Hence guaranteed income planning is much more convenient. The plan provides you security even after your retirement and helps you to become financially secure even after your retirement.
What is a guaranteed income plan?
Before you go for a guaranteed income plan, you must know about the policy. A guaranteed income plan is a monthly non-participating income system. You have to pay an annual installment till your policy matures. It is done for a specific period, and this income plan can be decided with your current financial condition and your age.
As the policy will mature, you will get a payout that will resemble your salary every month for a certain number of years.
The number of years will depend upon the insurance plan chosen or the number of premiums paid and the total sum assured with the maturity of the policy. The policy terms and the number of years depend upon the premiums paid and the duration of the maturity of the policy.
Benefits of having a guaranteed income plan
There are a lot of features and benefits of having a guaranteed income plan policy. It will help you in your old age and help you become independent rather than depending upon your children. You can use this money during any emergency. Here are some more benefits of having a guaranteed income plan.
Maturity perks
Saving for a long time can strengthen your financial needs. It can be difficult but not impossible. With a guaranteed income policy, you will get a huge sum insured with the maturity of the money.
Also, while you are saving, the company will give you a fixed interest rate that will help to increase the money. Hence you will have a lump sum amount that you can use for your future needs.
Extra source of income
As the money will be matured, you will get an ensured sum every month. This will be an extra source of income for you every month. This will help to fulfill all your and your family’s financial needs after your retirement. Hence, it is a smart way to save money.
Tax reduction and benefit
Under various sections like section 80C and Section 10D, you can save your money, and you will enjoy tax deductions. If you have a guaranteed income plan policy, you can save up to 1.5 lakh rupees as per the conditions of the Income Tax.
Increase family security
If you have this policy, it will not only help to liberate you after retirement but also help to meet your family’s needs. The plan is much more beneficial if a family has a sole earning member who helps to meet all the family needs.
Even if the policyholder dies, many banks or insurance offices issue waiving premiums for the rest of the period of the policy to the policyholder’s family.
Customized terms or period
You can easily customize your investment plan for the guaranteed income policy plan. The terms of the policy can be modified to ensure that they meet all the present and future needs of the policyholder.
Loan advantages
You can use the guaranteed income policy to get loans as soon as it reaches the surrender value. You can take up to 90% of the surrender value if any sudden financial crisis occurs in your family.
Conclusion
Choosing a guaranteed income plan will give you opportunities and a lot of benefits. You will also get a variety of options, and you can customize your plan according to your needs. It will help you to cover the high costs of your family in the future.
Before choosing the plan, you should draw your future needs and your current financial income. Even if the market goes down, you will not have to worry about your money, the policy will ensure your standard of living. It is one of the trustworthy investment plans for future use.
