Whatsapp Icon

Reasons to Buy a Guaranteed Income Plan

Everyone dreams of a financially strong and stable retirement life. However, after retirement, people want a reliable source of income that is not subject to market fluctuations and offers them the sense of security they want. Although banks and companies offer various savings and insurance plans, these plans do not offer consistent and reliable security that one enjoys when working.

Finding a plan or insurance that meets all of your demands and protects your dear ones in the case of sudden demise can be difficult. Therefore, buying an income assured plan is a must in today’s scenario. Let's take a look at the best guaranteed income plans that will help you meet all your needs whilst assisting you in your retirement and protect your dear ones.

Fixed Deposit

A bank Fixed Deposit (FD) is without a doubt one of the best and most low-risk income options. This scheme requires you to invest a set amount of money for a specified period. That set amount of money helps you to earn interest on a cumulative or periodic basis depending upon your choice.

Post Office Monthly Income Scheme (POMIS)

If you didn't know, our country's post offices offer various financial services and products, including Post Office Monthly Schemes. You can earn a consistent monthly income with this investment strategy, which has a 7.3 per cent return rate.

Government Bond (Long-Term)

Government bonds, especially long-term ones, are another reliable source of income. Though government bonds have long maturity duration (15-20 years), they typically pay an annual return of 8% twice a year. As a result, you can combine them with your other investments to generate income all year.

Corporate Deposits

Numerous Non-Banking Financing Businesses (NBFCs) and housing finance companies offer corporate deposits. Interest is paid on a quarterly, half-yearly or annual basis by these companies. The best strategy here is to broaden your investment by purchasing funds from a variety of high-ranking companies.

Systematic Withdrawal Plan (SWP) from Mutual Funds

A systematic withdrawal plan is extremely popular in India and a great technique to guarantee a consistent monthly income from mutual funds. It allows you to choose a specific sum as a monthly payment on your investment.

There are several reasons to invest in a guaranteed monthly income plan. Let's find out the advantages that the plan can provide.

1. An additional source of income

To remain ahead of your bills and meet all of your family's financial needs is to have a reliable source of income. The guaranteed income plan provides security so that your living standard does not drop even after you retire by generating moderate income.

2. Maturity benefit

When various plans do not provide a safety cushion, saving for a long-term financial objective can be difficult. However, you can save money with a guaranteed income plan and receive maturity benefits in the form of lump-sum payouts.

3. Tax benefits

The majority of people prefer to invest in insurance plans because of the various tax advantages they provide. For example, currently, under the terms of section 80C of the Income Tax Act, 1961, tax exemption can be claimed for insurance premiums paid upto Rs. 1.5 lakhs per annum.

4. Riders

When combined with this scheme, these riders provide additional protection and coverage in the case of an accident, critical illness, or large hospital bills, among other things.

5. Flexible terms

One of the most adaptable and customized investment programmes is the guaranteed income plan. The terms can be customized to ensure that they cover all of the policyholder's requirements.

6. Future financial needs

You can opt to save for your child's education, marriage or provide a safety net for your retirement plan. With the support of guaranteed income plan, you can attain whatever goal you have.

7. Loan benefits

You can get a loan if the guaranteed income plan has reached the surrender value. For example, one can get a loan for 70% of the surrender value. If you have an unexpected financial emergency and need money quickly, the guaranteed income plan might serve as a backup plan.

Disclaimer:

Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

Suggested Plans

Bharti AXA Life Grow Wealth

  • Flexibility in Investment Tenure T
  • Single Life/Joint Life Option
  • Grow your wealth further with Loyalty Additions
  • Multiple Fund Options to suit your investment needs and zero premium allocation charges
  • Tax benefits

Bharti AXA Life eFuture Invest

  • An affordable online Investment Plan.
  • Choose between two premium payment terms
  • Flexibilty of Partial withdrawal
  • Zero allocation charges
  • Tax Benefits

Bharti AXA Life Wealth Pro

  • An Individual Linked life cover with Insurance cum Savings Plan.
  • Choose a Variant: The plan offers you two variants to choose from a) Growtrh Variant b) Legacy variant
  • Grow your wealth further with Wealth booster
  • Multiple Investment Strategies to suit your investment needs
  • Tax benefits