Best Guaranteed Income Plans
Published On Mar 04, 2021 12:00 AM By InsuranceDekho
Table of Contents
Guaranteed income plans are traditional insurance policies that provide dual benefits including life insurance and maturity benefits and a ‘guaranteed’ or fixed income in the form of yearly, monthly, or quarterly payouts. They also offer a death benefit that is payable to the nominee in case the policyholder dies within the tenure of the plan. In addition to the death benefit, the nominee would also receive extra bonuses, namely, reversionary and terminal bonuses and can opt to receive them for a fixed number of years as mentioned in the policy. The benefits don’t end here, but continue with attractive income tax benefits where the premiums paid each year and the maturity benefit are exempted from tax.
Therefore, guaranteed income plans not only promise the policyholder with the option of a regular income and a life insurance, but also offer the option of augmenting their nominee’s financial position after their demise. Let us now look at 5 top traditional insurance policies where these benefits can be availed by anyone -
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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
The Max Life Guaranteed Monthly Plan is a money back insurance policy that offers a guaranteed regular income for 10 years. The minimum sum assured is 12.75 times the annualized premium and the maximum ceiling is 18.50 times the annualized premium. The policyholder can begin to receive the guaranteed monthly income once the premium paying term is over. The income is doubled after the completion of the initial 5 years of the payout period. In case the policyholder dies during the tenure of the policy, their nominee will receive a lump sum death benefit. The plan also offers the option of modifying the monthly income amount after maturity and converting the same into a lump sum payout amount. It has a minimum sum assured amount of INR 1 Lakh.
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2. LIC New Jeevan Anand Plan
The LIC New Jeevan Anand Plan is a participating, non-linked, endowment assurance plan that offers insurance coverage and a risk-free saving option. It has a minimum sum assured of INR 1 Lakh and there is no maximum ceiling. Under this policy, the regular monthly income is paid out as the basic sum assured after the completion of the premium paying term. If there are any bonuses, it is added to the basic sum assured amount. In case the policyholder dies during the tenure of the policy, a minimum death benefit of 105% of total premiums paid till death is paid to the nominee. 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
The Canara Smart Monthly Income Plan is a good option if your main aim is to receive a fixed monthly income and bonuses. The sum assured is 100 times the chosen monthly income. The monthly income of the policy begins at the end of the 10th year of the premium paying term and continues for a payout period of 15 years after that. The initial monthly income is INR 2,000 which then gradually increases in multiples of 100. The policyholder receives an added bonus and a final bonus upon maturity, as a percentage of the sum assured. If the sum assured amount is higher, then they can avail discounts on the premium amount as well.
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4. SBI Life Smart Money Back Gold Plan
This insurance policy is a non-linked money back plan with a guaranteed monthly income. Under this policy, the minimum sum assured is INR 75,000 and there is no limit on the maximum amount. It has 4 plan options and the money back option or the guaranteed income option corresponds with the plan option selected by the policyholder. For a term plan of 12 years, the monthly income can be received at 20% of the sum assured at 3 year intervals till the 9th year, also applicable for a policy term of 15 years at 15% of the sum assured. The percentage of the monthly income remains the same for policy terms of 20 years and 25 years with a 4 year and 5 year interval period, respectively. At maturity, the policyholder receives the final installment of the guaranteed income along with bonuses. In case the policyholder dies within the tenure of the policy, the nominee receives a death benefit, which is calculated either at a minimum of 105% of all premiums paid till death or the sum assured with reversionary and terminal bonuses.
5. HDFC Life Sampoorn Samridhi Plus Plan
This is an endowment plan with double benefits of life coverage and long term savings. The plan has a minimum sum assured of INR 65,463 and there is no maximum limit. The guaranteed income under this insurance policy is expressed as a percentage of the sum assured. Upon maturity, the policyholder receives the sum assured along with bonuses. They are also eligible for rebates at the rate of 4.5%, 6% and 7.5% corresponding with their different sum assured amounts and the nominee is paid a death benefit in case the policyholder dies during the tenure of the plan.
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These are the 5 top guaranteed income insurance plans in India and it is a suitable income option for those who like to maximize their savings and life insurance cover. Hopefully, this account will aid you to select a plan that is suited to your personal and financial requirements but it is always advisable to compare these plans with other policies available in the marker to arrive at the best option with regular benefits and other facilities.