India's 1st IRDAI Approved Insurance Web Aggregator

Know more about Guaranteed Income Plan

A guaranteed income plan is a traditional insurance plan introduced for investors who are risk averse but yet want to yield a fair amount of benefits. The Guaranteed Income plan offers dual benefits, maturity and life cover.

By: Sachin Telawane | 
Read Time: 3 minutes, 32 seconds | 
Last Updated: 27-04-2022
Know more about Guaranteed Income Plan
Financial planning is one of the most crucial factors that every individual should look upon. Having an adequate financial plan helps you get monetary protection from unexpected expenses. There are several financial companies, banks offering various schemes that offer you financial security. However, having a plan that not only provides financial security but also provides guaranteed returns is something that you should certainly have in your bucket.
It can be a bit difficult to find a savings plan that offers such benefits. Insurance companies have understood this gap and have exceptionally introduced the Guaranteed Returns Plan. Compare the best Guaranteed Income Plan that suits your needs.

What is a Guaranteed Return Plan?

A guaranteed income plan is a traditional insurance plan introduced for investors who are risk averse but yet want to yield a fair amount of benefits. The Guaranteed Income plan offers dual benefits, maturity, and life cover. It also provides a death benefit to the nominee of the policyholder in case of demise.

Some of the additional benefits that come along in a Guaranteed Income plan are the tax benefits, regular payouts, life insurance and a few more. If you are doing your financial planning and wish to have a regular income for a particular period of time, then a guaranteed income plan is the right choice for you.

Benefits of Guaranteed Return Income Plan

Tax-free monthly income

The Guaranteed Income plan ensures that once the premiums are completely paid, the policyholder can get monthly income payouts for a definite tenure as per the chosen time period. The income received under the plan is exempted from tax as per the Income Tax Act, 1961.

Immediate payout

In a Guaranteed Income Plan you do not have to wait for years after completing the payment of premiums to get payouts. Once the premium is paid for the tenure, the policyholder can begin receiving the assured sum as the monthly payout or as quarterly.

Guaranteed protection

The monthly income scheme not only provides death benefits under its guaranteed protection but also provides insurance. As per the norms, in case the insured passes away during the tenure of the guaranteed income plan, then the nominee will get the option to either receive the death benefits as a lump-sum amount or as an income for ten years or the duration he chooses after the demise of the insured.

Flexible payout options

There can be emergency situations where the insured person might be in severe need of money. For this, they can choose the option of getting the payout after the maturity of the monthly income scheme as a lump-sum amount. Otherwise, they can choose to get it in the form of monthly income.

These benefits may make a guaranteed income plan a smart investment and profitable option for people who are looking for an investment plan that ensures safety and benefits. 

Who should buy a Guaranteed Income Plan?

So, if you are a risk-averse type of investor and wish to have risk free returns then you should certainly opt for guaranteed income plans. The tax exemption gives additional benefits and helps you create a tax-efficient corpus. 
Any person in the age group of 18-60 years can purchase a guaranteed income plan. Since the plan offers dua benefits, the earnings and the frequency of payouts can be chosen by the policyholder.
If you are in your late 40’s and want to have financial stability for your retired life then a Guaranteed Income Plan would be an appropriate choice. These plans will provide assured returns to policyholders, which will help them take care of different adversities they face and maintain a steady income flow. The period in a Guaranteed Income Plan is variable and generally comes in the category of 10 years to 30 years.
A guaranteed income insurance plan is certainly a right option for you to ensure a regular income and financial stability. It comes with exceptional features enabling you to focus on achieving your financial goals. 
You should also consider selecting the best term plans that caters to your financial requirements and supports your family in absence. You can visit and our trained expertise will guide you through the best choice.

Sachin Telawane
Sachin Telawane is a Content Manager and writes on various aspects of the Insurance industry. His enlightening insights on the insurance industry has guided the readers to make informed decisions in the course of purchasing insurance plans.

Leave a Comment

Important: Insurance is the subject matter of solicitation | © 2009-2022