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Detailed Guide to Guaranteed Income Plans in India

  6/26/23 5:44 AM

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To maintain your lifestyle, it is vital to ensure that you have a robust source of income – whether that is after your retirement or during your working years (to supplement your primary income source). Investing in a guaranteed monthly income plan can be that regular source of income you need. With the best monthly income plan, you can sail through life’s various stages with ease – during turbulent times or sunny days alike.

What is a guaranteed monthly income plan?

A monthly income plan is an insurance product that gives fixed and guaranteed returns to the insured/ policyholder (the buyer), along with life insurance coverage, in exchange for the payment of periodic sums called premiums. This type of plan is non-linked – which means its returns are not linked to the debt or equity market and are free from any market fluctuations. As the name suggests, a guaranteed income insurance plan gives fixed payouts every month. This makes it one of the best retirement plans for those who want a stress-free and comfortable retired life. Moreover, as it is a non-linked product, it is a completely risk-free investment.

What are the benefits of a guaranteed monthly income plan?

A guaranteed monthly income plan gives buyers the dual benefit of insurance protection and fixed periodic payouts. This way, a policyholder’s family is financially secure in his/ her presence or absence. Here are the benefits a monthly income plan provides:

1. On the unfortunate demise of the policyholder, a guaranteed income insurance plan gives a monetary payout in entirety to his/ her family members. This payout is called the sum assured under and enables the policyholder’s loved ones to sustain themselves.

 

2. After the expiry of the first year of the plan’s term or the start of the second year term, the policyholder receives periodic and assured payouts till the entire remaining term of the plan or up to the death of the policyholder. This ensures that the family members of the buyer have a source of alternate income and can easily micromanage the amounts for their monthly expenses.

 

3. At the end of the plan’s term, if the policyholder survives, he/ she receives a maturity benefit so that his/ her investment does not go to waste. This maturity benefit is the entire sum assured and is given to the policyholder at the end of the term.

Who can buy a guaranteed income insurance plan?

Anyone between the ages of 18 and 65 years can buy a guaranteed income insurance plan. This type of plan is best for those who want to always secure a steady stream of income for themselves and their loved ones.

It is also ideal for risk-averse investors who want to stay safe from market fluctuations and avoid the chances of losses. A monthly income investment plan can continue even until the policyholder is of 99 years of age.

Edelweiss Tokio life - Income Builder:

One of the leading names for life insurance in India, Edelweiss Tokio Life puts its customers first and ensures they receive a stable income, especially in unforeseen times, through its Edelweiss Tokio Life Income Builder Plan, a guaranteed income plan that offers:

· Single plan, double dhamaka: Dual benefits of life insurance and income generation in a single plan.

· Flexible return payout options: The policyholder can choose to receive the payout:

1. ‘Regular Income’ - You can get your income in regular monthly, quarterly, half-yearly or yearly instalments.

2. ‘Regular Income plus Lump Sum’ - You can choose to get a part of the applicable amount as lump sum payout and the rest as regular instalments.

· The freedom to choose your coverage type between:

1. Base Plan: It gives the flexibility to choose between single premium and regular premium options.

2. Secured Income Option: This has all the features of the Base Plan, along with a pre-included Critical Illness Benefits that covers 12 listed illnesses.

· Choose your special date for advance payout: You can choose the date when the regular payout will be credited to you.

· A fixed death benefit payout that assures:

o  The entire sum assured on the demise of the policyholder (which is 10 times the annual premium amount paid by the policyholder)

o  Any cumulative paid-up additions

o  Any bonuses, including the terminal bonus

· An extra layer of protection with 6 additional riders (on the payment of more premium) including:

o  The Edelweiss Tokio Life Accidental Death Benefit Rider: It provides an additional sum assured over and above the base sum assured (paid in lump-sum) for complete financial security in the event of the policyholder’s death due to an accident.

o  The Edelweiss Tokio Life Accidental Total and Permanent Disability Rider: It provides an additional sum assured over and above the base sum assured for the policyholder’s sustenance in case the policyholder develops a permanent injury due to an accident.

o  The Edelweiss Tokio Life Waiver of Premium Rider: It waives off the payment of future premiums in case the life assured develops a critical illness or suffers from a permanent disability due to an accident.

o  The Edelweiss Tokio Life Critical Illness Rider: This rider pays 100% of the rider sum assured to the life assured if they are diagnosed with one of the 12 listed critical illnesses.

o  The Edelweiss Tokio Life Income Benefit Rider: This rider helps provide a regular income to your family, in case of your demise, for their day-to-day financial requirements.

o  The Edelweiss Tokio Payor Waiver Benefit Rider: If the policyholder is diagnosed with one of the listed critical illnesses, suffers permanent disability or dies, all the future payments will be waived off, and the life insured will continue receiving the policy benefits. This rider is applicable if the policyholder and life insured are two separate individuals.

A monthly income plan is one of the few instruments to give life insurance protection and a steady stream of fixed returns. The plan is a win-win in all ways. It ensures that your family does not have to compromise in your presence or absence.  

To know more about our guaranteed income plan, get in touch with us today!

 

 

Aastha Mestry -  Portfolio Manager 

An Author and a Full-Time Portfolio Manager, Aastha has 6 years of experience working in the Insurance Industry with businesses globally. With a profound interest in traveling, Aastha also loves to blog in her free time.

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