Guaranteed Income Plan

It takes constant effort and perseverance to meet up all short and long-term financial goals at the right time. Although needs are endless, yet your financial strength can count for everything.

Hence, it is very important for an individual to maintain financial stability at every stage of life to ensure the financial security of his/her loved ones even when (s)he is not around them. Understanding the importance of financial stability, life insurance companies offer guaranteed income plans.

The guarantee word is itself very fascinating, and being added to regular payouts, these plans become leverage for risk-averse investors. These plans provide dual benefits, including life insurance along with maturity benefits and guaranteed earnings in the form of yearly, monthly, or quarterly payouts decided by the policyholder at the time of purchasing the policy.

So if you buy a guaranteed income plan, you are liable to get guaranteed periodic payouts after the maturity of the policy. The amount of the payouts depends on the mentioned percentage of your main corpus (i.e. sum assured).

Who Should Go For Guaranteed Income Plans?

If you are a person who wishes to build up a significant corpus or source of regular income in your old age, then this plan is ideal for you. Any individual who falls in the age group of 18-60 years (this may change as per the respective plan) can buy a guaranteed income plan and enjoy all the benefits that come with the plan. In general, the policy term ranges from 10 to 30 years, and it is not dependent on the market’s performance.

What Benefits Do You Get From Guaranteed Insurance Plans?

• Maturity Benefit: Upon maturity, you will receive a simple reversionary benefit and start getting periodic payouts depending on the pre-decided percentage of sum assured of your plan.
• Death Benefit: In case you don’t survive the premium payment term, the nominee is liable to get the basic sum assured along with bonuses like a reversionary and terminal bonus (if any). Moreover, the periodic payouts will be given to him/her for the fixed number of years, mentioned in your policy. Or, If you die during the payout period, then the sum assured and bonuses are credited to the nominee’s bank account.
• Income Tax Benefit: The guaranteed income plan offers a tax deduction (every year) for payable premiums under section 80 C and tax exemption on the maturity proceeds under section 10 D of the Income Tax Act, 1961.

List of Some Best Guaranteed Income Plans

1. Max Life Guaranteed Monthly Plan

   It is a money-back insurance plan, which offers a life cover with guaranteed regular income benefit for a payout period of ten years.

   Age at entry	25-60 years
   Maximum maturity age	66 years
   Premium payment mode	Annually
   Policy term	6 years or 12 years
   Minimum annualized premium for a 6-year policy term	Rs. 75, 000
   Minimum annualized premium for a 12-year policy term	Rs. 20, 000
   Maximum annualized premium for both 6 and 12 years policy term	No limit

   Benefits

   • On completing the premium payment term, the policyholder will receive guaranteed monthly income for the next 10 years.
   • After completing half of the 10-year payout period, the policyholder will get double monthly income.
   • In case of death of the policyholder, the nominee will get the lump sum.
   • The policyholder is free to modify his/her monthly guaranteed income plan after maturity and convert his/her monthly payouts into a lump sum payout.

2. LIC New Jeevan Anand Plan

   It is a participating non-linked endowment assurance plan in LIC offering insurance coverage and risk-free saving under one roof.

   Age at entry	18 - 50 years
   Maximum maturity age	75 years
   Premium payment mode	Yearly, Half-yearly, quarterly, monthly
   Policy term	15 - 35 years
   Premium amount	Depends on the age of the policyholder, sum assured and term
   Loan facility against the policy	After three years
   Minimum sum assured	Rs. 1 lakh
   Maximum sum assured	No limit

   Benefits

   • After completing the policy tenure, the policyholder will receive a basic sum assured along with bonuses.
   • In the case of demise of the policyholder, the sum assured (either 125% of the sum assured chosen by the holder or 10 times the annual premium) is payable to the nominee along with bonuses. (Note: A minimum death benefit of 105% of total premiums paid is payable to the nominee on death of policyholder)
   • Under this guaranteed income plan, the policyholder can avail rebates as follows -

   Mode of premium payment	Rate of rebate
   Yearly	2%
   Half-yearly	1%
   Quarterly or monthly	No rebate

   Amount of sum assured	Rate of rebate
   INR 2,00,000 to 4,95,000	1.50% of the sum assured
   INR 5,00,000 to 9,95,000	2.50% of the sum assured
   INR 10,00,000 and above	3.00% of the sum assured

3. Know More About: LIC New Jeevan Anand Plan

4. Canara Smart Monthly Income Plan

   It is one of the ideal plans to meet your financial goals through guaranteed income and bonuses, offered by Canara HSBC and OBC.

   Premium Payment term	15 years
   Age at entry	18 - 55 years
   Maximum maturity age	43-80 years
   Premium payment mode	Yearly and monthly
   Policy term	25 years
   Premium amount	Depends on the age of the policyholder, premium mode and income chosen
   Sum assured	100 times the chosen monthly income
   Minimum income	Rs. 2,000 per month (thereafter in multiples of 100)

   Benefits

   • This monthly guaranteed income plan offers monthly payouts to the policyholder for 15 years from the end of the 121st policy month.
   • After the maturity of the plan, the policyholder will receive added annual bonuses and final bonus, expressed as a percentage of the sum assured.
   • On choosing a higher sum assured, the policyholder can avail good discounts on the premium amount.

5. SBI Life Smart Money Back Gold Plan

   SBI offers this participating non-linked money-back plan to support your financial needs at crucial points in your life.

   Minimum age at entry	14 years
   Maximum age at entry	45 years (for regular premium), 55 years (for limited and single premium)
   Maximum maturity age	70 years
   Premium payment option	Regular premium/Limited premium/ Single premium

   Benefits

   • At the maturity of the plan, the policyholder will receive a final instalment of survival benefit along with bonuses like simple reversionary and terminal bonus, if any.
   • In case of the unfortunate demise of a policyholder, the nominee will receive either A or B, whichever is higher.

   A: Sum assured on death along with vested simple reversionary bonus and terminal bonus, if any

   • For Regular and limited premium policy: sum assured on death is 11 times of annualized premium
   • For single premium policy, the sum assured on death is 1.25 times of a single premium

   B: Minimum death benefit (ie. 105% of all premiums payable)

6. Know More About: SBI Life Smart Money Back Gold Plan

1. HDFC Life Sampoorn Samridhi Plus Plan

   It is an endowment plan that offers twin benefits of life coverage and long-term savings for the financial security of your family.

   Age at entry	30-60 years
   Maximum maturity age	18-75 years
   Premium payment option	Yearly, Half-yearly, Quarterly and Monthly
   Policy term	15-40 years
   Minimum sum assured	Rs. 65,463
   Maximum sum assured	No limit

   Benefits

   This guaranteed income plan offers guaranteed additions, expressed as a percentage of sum assured at the time of maturity of the plan or death of the policyholder.

    

   Policy term	Guaranteed additions
   15-19 years	3 % p.a.
   20-24 years	4 % p.a.
   25 years or above	5 % p.a.

   At the time of maturity of the plan, the policyholder will receive -

   • Sum Assured
   • Accrued Guaranteed Additions
   • Accrued Reversionary bonuses
   • Interim bonus (if any)
   • Terminal bonus (if any)

   The policyholder also gets some rebate on premium as follows -

   Sum assured on maturity (in INR)	Rate of rebate (per 1000 Sum Assured on Maturity)
   150,000 to less than 300,000	4.5
   300,000 to less than 500,000	6
   500,000 and above	7.5

   In the case of the death of a policyholder, the nominee will get the death benefit.

Conclusion

In today’s situation, it is really essential to think about your savings and life insurance. Guaranteed income plan is one of the suitable insurance products, which offers life insurance with guaranteed returns. Compare guaranteed income plans online and enjoy the benefits of regular periodic payouts, bonus facility, life coverage and more.