The current pandemic has led to higher awareness as well as averseness towards risk. Along with that, for many people it has become quite difficult to maintain financial stability, nowadays. With rising health and life risks along with a volatile economy, individuals want to secure their life and money, both. In times as such life insurance serves the purpose of safeguarding one’s financial needs when one is not around.
Guaranteed income plans cater to risk-averse investors, by offering life insurance along with maturity benefits and regular guaranteed payouts. These types of plans offer regular income at a pre-defined percentage of sum assured selected by the policyholder at the time of buying the policy. Policyholders also get the option to choose to receive the income either yearly, half-yearly, quarterly, or monthly.
Kamlesh Rao, MD & CEO, Aditya Birla Sun Life Insurance, says, “This type of plan bridges this gap and offers the right solution. Such goal-based product offers guaranteed returns to cover the two biggest milestones of a child’s life – education and marriage.”
In the last couple of months, many insurance companies have come up with various guaranteed income plans to provide financial stability to individuals. However, before opting for one, you need to understand at what point in life you should opt for a life insurance cover. For instance, if you have dependent parents, spouse, or children, you should opt for a life insurance cover.
Note that, usually such long-term guaranteed products offer conservative returns. Hence, experts suggest that before opting for such a plan, policyholders should factor in inflation with the value of their investments. This way you will not get lower returns. Also, if you do not have any dependent on your income, usually there is no need to get a life insurance policy.
Bajaj Allianz Life Flexi Income Goal: This plan offers policyholders the flexibility to receive guaranteed benefits and cash bonuses, and earn investment returns on it. According to the Bajaj Allianz Life India’s Life Goals Preparedness Survey, it showed nearly 50 per cent of Indians find it difficult to achieve a child’s education goals due to lack of financial support. With this plan, policyholders can also choose to receive the cash bonus from the 1 month onwards of the policy or accumulate the benefits for future returns.
This non-linked, participating guaranteed income life insurance plan offers equity exposure up to 40 per cent depending on the variant opted for under the policy.
Aditya Birla Sun Life Insurance Child’s Future Assured Plan: This plan offers assured returns along with protection. It is a non-linked non-participating life insurance plan, wherein policyholders can plan for their child’s two significant milestones – education and marriage. The plan offers an in-built waiver of the premium element, with which the policy continues in case anything unfortunate happens to the life insured.
Rao of Aditya Birla Sun Life Insurance says, “The need to protect one’s child’s future is emerging as one of the biggest worries of people. Thereby, a solution that covers life, and provides assured cash flow to meet goals at different life stages, is the need of the hour.” The plan offers the choice to enhance risk cover up to 200 per cent of the sum assured. The age of maturity is set at 75 years for this plan and the minimum premium is set at Rs 30,000 p.a. with no max limit. You can also choose periodic pay-outs with this plan ranging from 3, 6, or 9 years. Additionally, you can also avail the option to receive both, guaranteed regular income and guaranteed lump sum to meet different types of expenses.
PNB MetLife Guaranteed Income Plan: This PNB plan is a non-linked, non-participating endowment policy that provides the policyholder with a guaranteed income plan. The policyholder gets a lump sum benefit with which they can focus on their big plans, such as meet important milestones of their child’s education or fund their annual vacations with the help of this savings plan. This plan gives guaranteed maturity benefit and life cover for the entire policy term.
Under the guaranteed income benefit, policyholders can get regular annual income ranging from 11 to 13 per cent of basic sum assured, based on their premium payment term. One can choose to pay premiums for 5, 7, 10, or 12 years. In addition to the guaranteed income benefit, one gets 30 to 55 per cent of basic sum assured, on maturity, based on a policy term.
IndiaFirst Life Guaranteed Benefit Plan: It is a non-linked, non-participating, endowment life insurance plan, that offers dual benefits of guaranteed savings and protection in a single policy. It comes with a shorter pay tenure of 5, 6, or 7 years. Depending on the needs of an individual, such as supplementary future income requirements, an individual can opt for the Income Benefit option. If one wants to accrue savings for specific goals, the lump sum option can be opted for.
Policyholders can also opt for the ‘waiver of premium rider’ that will ensure continuity of the policy benefits in case of unfortunate events. With this policy, you can avail tax benefits, on the premiums paid and benefits received.