The recent pandemic scenario has caused a sudden economic slowdown and extreme distress. It was also the reason for you to consider your finances carefully and how you must invest your hard-earned money. If you prioritise protecting your family’s financial needs and a consistent income from investments throughout life, a regular income plan is just the ideal guaranteed savings plan for you.
What is a regular income plan?
To understand what a regular income plan is, you must know about an assured savings insurance plan. It is a type of life insurance policy that provides life cover and guaranteed returns. The life cover is a sum assured to the nominee in case of your sudden unexpected death during the policy tenure. In addition to the life cover, the savings insurance plan provides guaranteed returns on maturity.
There are different ways to receive the guaranteed returns. You can receive it as a lump sum amount, as a lump sum and guaranteed annual income or a regular monthly income. With the regular monthly income, you can choose the income period. For example, you can choose a guaranteed savings plan for a policy duration of 15 years and pay the regular premium amount. If you choose a 20-year income period, you will get guaranteed income every month from maturity for 20 years.
How is the plan helpful to you?
The savings insurance plan is extremely helpful for people seeking specific benefits. Here are a few to mention.
- Safe investment: If you are looking for a safe investment option with consistent returns, it is the best plan. As the returns are not market-linked, you get assured returns. Also, there is no possibility of a risk involved in a life insurance savings plan. As the returns are guaranteed, you can plan for a definite long-term financial commitment such as your child’s higher education or marriage. TATA AIA life insurance has well-crafted plans with exclusive savings insurance benefits for individual needs.
- Retirement: If you wish to plan for your retirement in a consistent manner, it is relatively simple to invest and benefit from a guaranteed return insurance plan with regular income. If you are the sole earning member in the family, you will have commitments at different stages in life. It is equally important to plan for a regular income post-retirement to suffice your family’s needs. You can also invest the regular income earned on other financial instruments to ensure maximum protection. With so many options it is always prudent to work with a financial advisor to explore the best retirement plans.
- Supplement your income: If you are engaged in a business or developing a new venture after a few years of a steady flow employment phase, you cannot ensure consistent income. With a savings insurance plan, you can help yourself by supplementing with an additional regular income for a set period.
- Tax-saving investment: If you are looking for a tax saving plan in India, the guaranteed return savings plan will be a suitable choice because you get a life cover with additional returns. The premium amount paid and the returns qualify for a tax deduction and tax exemption, respectively, under the Income Tax Act, 1961.
If you have not sufficiently planned for a future, and however would like to do one conservatively, a money-saving plan such as this will help you immensely. It will be a safe tax-saving investment that can supplement your income and ensure a secure retirement term.
Choose a plan wisely and derive the maximum benefits by understanding your requirements and evaluating the many options available smartly!