For most people, keeping financial stability has become more challenging in the modern world. Insurance firms have developed guaranteed income plans in response to the need for a person’s life to be financially stable.
Guaranteed return insurance plans were created to meet risk-averse investors’ needs and provide them with the advantages of life insurance, maturity benefits, and recurring guaranteed payout. By offering a steady stream of income at a predetermined percentage of the Sum Assured, the guaranteed return insurance plan offers financial security.
The plan’s Uniqueness is the option to receive payments annually, biannually, quarterly, or monthly. The insurance holders of these guaranteed income plans can enjoy the highest returns without worrying about the market’s ups and downs.
Eligibility for Guaranteed Return Insurance Plan
Guaranteed return insurance plans are created for salaried individuals between the ages of 18 and 60, and their policy terms range from 10 to 30 years.
Features of Guaranteed Return Insurance Plan
- An insurance plan with guaranteed returns provides consistent income for a predetermined duration between ten to thirty years.
- Offers terminal bonus, if any, combined with a vested reversionary bonus at maturity.
- Both maturity and death benefits are provided.
- Insurance plan with guaranteed returns Offers the advantage of tax exemption.
- Policy terms can be a minimum of 10 years to a maximum of 30 years.
Benefits Of Guaranteed Return Insurance Plan
Guaranteed return insurance plans provide you with different advantages, some of which are listed below.
1. Maturity Advantage
The individual insured receives the simple reversionary bonus and any applicable terminal bonus at maturity. If the payout period is less than 15 years, the insured receives the regular payment, a predetermined portion of the total assured.
2. Death benefit
The nominee of the insurance plan with guaranteed returns receives the basic sum assured amount, as well as the reversionary bonuses and terminal bonus if any, If the insured passes away within the term for which premiums are due.
The payouts continue for the subsequent 15 years or as specified in the policy. The nominee receives the sum assured amount in addition to the other benefits in the case of the insured’s death after the premium-paying term or during the payout period.
3. Income Tax Advantages
According to the terms and conditions, both a tax deduction under Section 80(C) and a tax exemption under Section 10(10D) are available.
The Accidental Death Benefit Rider is a built-in rider with the standard assured income plan. For some best-guaranteed income plans, insurance policies provide fully guaranteed returns, while other plans only provide partial guarantees.
Best Guaranteed Income Plan
Here are the best-guaranteed income plans, along with their necessary details. You can consider this when purchasing the assured income plan.
|Plan Name||Plan Type||Entry Age||Age||Policy Term|
|Aegon Life Term Plan||Term Plan||20 to 65 years||75 years||10 – 75 years minus age at entry|
|Aviva Dhan Samriddhi||Money Back Plan||13 to 55 years||23 to 70 years||10,15 and 20 years|
|Aviva I-Life Plan||Term Plan||18 to 55 years||70 years||10 to 35 years|
|Bajaj Allianz Save Assure||Endowment plan||1 to 60 years||18 to 75 years||15 to 17 years|
|Bharti AXA Aajeevan Sampatti +||Endowment Plan||91 days to 60 years||85 years||100 to 85 years|
|Birla Sun Life Vision Endowment Plan||Endowment Plan||1 to 55 years||—–||20 years|
|Canara HSBC OBC Smart Stage MoneyBack Plan||Money Back Plan||8 to 55 years||70 years||15 years|
|Canara Smart Monthly Income Plan||Monthly Income Plan||18 years to 55 years||43 to 80 years||25 years|
|Edelweiss Tokio Guaranteed Income Plan||Endowment Plan||3 to 50 years||18to 65 years||15 years|
Insurance Plan With Guaranteed Returns – FAQs
Can I take a loan against an insurance plan?
To support yourself in case of any financial problem, you can take a loan against the policy of up to 80% of the surrender value.
Guaranteed Income Availability
You can select to earn a guaranteed income either monthly or yearly in the Income plan option. The Guaranteed Income payout frequency under the Early Income plan option will correspond to the frequency of premium payments. In addition, you can choose between a monthly or annual regular income.