The beginning of a new financial year is always a great time to revisit your portfolio and review if your investments are on track to meet your financial goals. It may also be the right time to invest in new financial products if you need to, based on how your goals have changed or evolved. A guaranteed income plan can be one of the preferred plans and safest choices that you can opt for.
What is a Guaranteed Income Plan?
This kind of investment plan offers the advantage of assured income payouts for a predetermined time in addition to life cover, thus providing you with a sense of financial security for you and your family. A guaranteed income plan is suitable for all risk profiles.
If you are risk-averse, the guaranteed payouts with features like the return of all premiums at the end of the policy term make this kind of investment plan a preferred option for you. On the other hand, if you are open to taking on medium or higher levels of risk, you can balance out the risk exposure in your portfolio with a guaranteed income plan.
How does a guaranteed income plan work?
When you buy an income plan, you begin with choosing the amount you want to pay and the number of years. You also decide the Income Period during which you will receive your guaranteed income. Then based on the age of an individual, the payouts (i.e.income) and sum assured is calculated.
You will then start receiving the income payouts guaranteed under the plan, based on the features of the plan. These payouts will continue regularly. In some plans, the income remains constant during this period, while in others, the income payouts increase by a specified percentage at regular intervals.
A guaranteed income plan can play a pivotal role in ensuring that you are financially secure in the long run. It offers stability and proves to be a convenient way to earn regular income.
By Sameer Joshi, Chief Agency Officer, Bajaj Allianz Life Insurance