Best Guaranteed Income Plans
Updated On Feb 14, 2022
Table of Contents
Life insurance plans that provide both life insurance and maturity benefits, as well as a 'guaranteed' or fixed income in the form of a yearly, monthly, or quarterly payout, are referred to as guaranteed income policies. If the policyholder dies during the term of the plan, a death benefit is payable to the nominee. Furthermore, the nominee would receive extra bonuses, in addition to the death benefit, namely reversionary and terminal bonuses, and could express an interest in receiving them for a specific time period specified in the contract. The benefits of these plans don't stop there. The premiums paid every year and the maturity benefits are both tax-free.
As a result, guaranteed income plans offer both a regular income and life insurance to their policyholder, including the possibility of augmenting their nominee's finances after they pass away. The following are the 5 best traditional insurance policies that offer these benefits to anyone -
5 Top Guaranteed Income Traditional Insurance Plans in India
The following are a list of 5 top guaranteed income insurance plans in India -
1. Max Life Guaranteed Monthly Plan
Guaranteed Monthly Plan from Max Life provides a 10-year regular income that is backed by a money-back guarantee. Assured sums must not be less than 12.75 times the annualized premium and not more than 18.50 times it. As soon as the premium-paying period is over, the policyholder will start receiving the guaranteed monthly income. After the initial five years of the payout period is completed, the income is doubled. In the event that the policyholder dies during the term of the policy, a lump sum death benefit is payable to the nominee. As an alternative, the monthly income amount can also be modified after maturity and converted into a lump sum. It has a minimum sum assured amount of INR 1 Lakh.
2. LIC New Jeevan Anand Plan
New Jeevan Anand Plan is an endowment plan that provides insurance coverage and risk-free savings for LIC members. It is not linked to any other plan. There is no maximum limit and a minimum sum assured of INR 1 Lakh. With this policy, the regular monthly income is paid out as the basic sum assured after the premium-paying period has ended. The bonus will be added to the basic sum assured amount. A death benefit of at least 105% of the premiums paid till death is given to the nominee in case the policyholder dies during the term of the policy. This guaranteed income plan does not offer a rebate for quarterly or monthly premium payments, but allows a half-yearly and yearly rebate of 1% and 2% respectively.
3. Canara Smart Monthly Income Plan
If your main objective is to receive a fixed monthly income and bonuses, the Canara Smart Monthly Income Plan could be a good option. The sum assured is 100 times the chosen monthly income. Starting after the tenth year of the premium-paying term, the policy pays a monthly income for a period of 15 years. Income increases by multiples of 100 starting at INR 2,000 per month. After the policyholder reaches maturity, the policyholder will receive an additional bonus and a final bonus, both of which are percentages of the sum assured. Those who have a higher sum assured amount can also get a discount on the premiums.
4. SBI Life Smart Money Back Gold Plan
With this insurance policy, you will receive a guaranteed monthly income through a money back guarantee. There is no maximum limit on the sum assured under this policy, which starts at INR 75,000 and goes up to an unlimited amount. Policyholders can choose from four plan options, and the guaranteed income or cash back options correspond to the plan option they select. In a policy with a term of 12 years, the monthly income can be received at 20% of the sum assured at 3 year intervals until the 9th year, and the rate will be 15% of the sum assured for a policy of 15 years. During the policy terms of 20 years and 25 years, with a four year and five year interval, respectively, the percentage of the monthly income does not change. As the policy matures, the policyholder receives the final installment of guaranteed income together with any bonuses. The nominee receives a death benefit if the policyholder dies within the tenure of the policy. The death benefit is either 10% of all premiums paid till the date of death or the sum assured with reversionary and terminal bonuses.
5. HDFC Life Sampoorn Samridhi Plus Plan
Providing life insurance and long-term savings, this endowment plan has double benefits. There is no maximum limit on the plan, but it offers a minimum sum assured of INR 65,463. Under this policy, the income guaranteed is expressed in percentage terms. In addition to the sum assured, the policyholder receives bonuses at maturity. In addition, they can receive rebates at the rates of 4.5%, 6%, and 7.5% corresponding to their different sum assured amounts, and a death benefit is paid to the nominee in the event that the policyholder dies during the tenure of the policy.
Listed below are the top 5 guaranteed income insurance plans in India. This is a good option if you are looking to maximize your savings and life insurance coverage. As a result of this article, you will probably have an easier time selecting a policy that is appropriate to your financial and personal needs, but it is always a good idea to contrast these policies with other options available in the market to determine the most suitable policy with regular benefits.