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Guaranteed Income Plan
A Guaranteed Income Plan is a plan that provides you with insurance cover along with a guaranteed¹ income during a set duration. You choose your saving goals and financial appetite to decide how long you want the regular income. A guaranteed income plan also allows you to decide the payment option that suit you the best. We will understand it in more detail below.
Financial planning is key to living a well-balanced, happy life. We all know this, but something that we don’t realize is how easy it is to plan all your goals when you have a second source of income! In today's unprecedented times, the ability to fulfil your family’s dreams by buying that dream home or giving your child the best education has become slightly challenging in today’s unprecedented times.
Wouldn’t it be amazing if you could get a guaranteed¹ stream of growing income based on your life goals? If your answer is yes, then the Guaranteed Returns Plan is the right choice for you.
A guaranteed investment plan empowers you to decide how long and at what time you want your income payouts to be. For example, for 10 years annually or for 8 years quarterly, or even as a lumpsum income.
Key Benefits Of Guaranteed Income Plan
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Why A Second Income In Life Is A Must?
Everyone needs a second income to fall back on when they move forward in life. A life where they don’t have to worry about money when they have retired. What we all want is a reliable source of income that is not subject to market fluctuations and offers you the peace of mind you want at that age.
Finding a plan that meets all your requirements while also providing you with protection that will not only benefit you after you retire but also protect your loved ones in the event of your death can be difficult. When determining which plan is ideal for you, you must evaluate the premiums that must be paid, returns, terms and conditions, death benefits, coverage, and a variety of other terms and consideration.
Guaranteed Income Plan are designed to keep you and your family financially stable in case of any unprecedented situations or once you retire. There are various Guaranteed Return Income Plans with Edelweiss Tokio Life Insurance Company Limited that are amongst the finest saving plans in India because it is not subject to market fluctuations and guarantees income at the frequency and rate that you will choose. Let’s look at some of the reasons and factors to consider while investing in a guaranteed income plan.
Factors To Consider Before Buying Guaranteed Income Plan
With a larger number of options readily available in the market, it often becomes confusing for you as consumer to decide on which is the best choice for you. If you are looking to invest in a guaranteed income plan, here are a few things that you must consider.
● What are Your Life Goals?: If you are someone planning to buy a guaranteed income plan, the first thing to decide is what are your life goals. If you are a doctor, engineer, teacher, businessperson or a salaried employee, this kind of guaranteed income plan will work best for you. Also, if you are someone transitioning from a single to a married life or married life to being a parent; a guaranteed income plan will help you save for your life goals such as family’s living, dream house, or your child’s future education.
● Look for a Flexible Policy: It's a good idea to choose a guaranteed return plan that's adaptable to your income and budgetary constraints. Choose a plan that allows you to pay your premiums in one lump sum or in regular installments, and then pick the option that suits you the best.
● The Reputation of Your Insurance Provider: When it comes to investing your hard-earned money in an investment and savings plan, it goes without saying that you must look for the best guaranteed income plan on the market. This can be accomplished by observing the insurance company's prior performance. The claim settlement ratio, solvency ratio, and other metrics can be used to assess an insurer's reliability.
● Rider Available with the Plan: Riders are extra layers of protection that can be added to your policy. As a result, you should always opt for an insurance plan that offers a variety of riders to fit your needs. The critical illness rider, the accidental death rider, the lifelong disability rider, and others are all common but useful riders.
● Look for a Loan²: A financial emergency can happen at any moment and in any place in your life. As a result, it's critical to invest in fixed-income instruments that can provide you loan when in need. After a policy's surrender value has been reached, most guaranteed income plans allow for a loan or partial withdrawal. Before you buy a plan, make sure to look for this feature.
Reasons To Buy Guaranteed Income Plan
Guaranteed Income with Life Cover
What’s better than having protection for you and your family for life? A plan that provides both guaranteed¹ income and life cover. It makes sense to invest in a guaranteed income plan especially for those who have dependents in their family. It helps in providing a safety net for your family even in your absence.
Benefit on Maturity Income
Saving for a long-term financial goal can be difficult without a guaranteed¹ source of income. You can save money with a guaranteed income plan and receive maturity benefits in the form of lump-sum payouts. These returns can assist you in meeting any pressing financial demand that necessitates the use of a flexible budget.
Tax Benefits³
Another advantage of investing in a guaranteed income plan is having various tax benefits³ on the premiums paid and the maturity income received. With a guaranteed income plan, you can save up to ₹1.5 lakhs on premiums paid under section 80C of the Income Tax Act, 1961. Also, the income received under the plan is exempted from tax under section 10(10D).
Immediate Premium Payouts
You don't have to wait years for your assured payout once you've finished paying your premiums. You can start receiving the insured sum as a monthly/quarterly or annual distribution as soon as the premium tenure is completed.
Family Income Benefits
A Guaranteed Income plan offers this benefit to ensure that in case of an unfortunate death or diagnosis of covered Critical Illness, you and your loved ones don’t have to compromise on your dreams as you/they will continue to receive benefit.
Future Financial Security
A guaranteed income plan offers you the flexibility to select your guaranteed¹ income basis your life goals – lump sum, short term income, long term income and retirement income.
Riders of Choice
Riders are a great way of enhancing your protection under the plan as they provide additional protection and coverage in the event of an accident, critical illness, or large hospital bills, among other things. With the riders, you can rest easy knowing that you and your family are covered.
Loan² Benefits
A guaranteed income plan serves as a backup in case of an unexpected financial need or if require money right away. You can use the surrender value of your guaranteed income plan to get a loan once it has reached the surrender value. Usually, a loan amount of 90% of the surrender value is available.
Guaranteed Income with Life Cover
What’s better than having protection for you and your family for life? A plan that provides both guaranteed¹ income and life cover. It makes sense to invest in a guaranteed income plan especially for those who have dependents in their family. It helps in providing a safety net for your family even in your absence.
Benefit on Maturity Income
Saving for a long-term financial goal can be difficult without a guaranteed¹ source of income. You can save money with a guaranteed income plan and receive maturity benefits in the form of lump-sum payouts. These returns can assist you in meeting any pressing financial demand that necessitates the use of a flexible budget.
Tax Benefits³
Another advantage of investing in a guaranteed income plan is having various tax benefits³ on the premiums paid and the maturity income received. With a guaranteed income plan, you can save up to ₹1.5 lakhs on premiums paid under section 80C of the Income Tax Act, 1961. Also, the income received under the plan is exempted from tax under section 10(10D).
Immediate Premium Payouts
You don't have to wait years for your assured payout once you've finished paying your premiums. You can start receiving the insured sum as a monthly/quarterly or annual distribution as soon as the premium tenure is completed.
Family Income Benefits
A Guaranteed Income plan offers this benefit to ensure that in case of an unfortunate death or diagnosis of covered Critical Illness, you and your loved ones don’t have to compromise on your dreams as you/they will continue to receive benefit.
Future Financial Security
A guaranteed income plan offers you the flexibility to select your guaranteed¹ income basis your life goals – lump sum, short term income, long term income and retirement income.
Riders of Choice
Riders are a great way of enhancing your protection under the plan as they provide additional protection and coverage in the event of an accident, critical illness, or large hospital bills, among other things. With the riders, you can rest easy knowing that you and your family are covered.
Loan² Benefits
A guaranteed income plan serves as a backup in case of an unexpected financial need or if require money right away. You can use the surrender value of your guaranteed income plan to get a loan once it has reached the surrender value. Usually, a loan amount of 90% of the surrender value is available.
Why Choose Guaranteed Return Plans Offered By Edelweiss Tokio Life?
India's leading financial services conglomerate with a 21-year history
Digital-first expertise coupled with customer-centric approach and hassle-free settlements
Multi-channel distribution network with well-equipped and well-trained staff
Over 100 branches in major cities across India as of January 2022
How Does Guaranteed Income Plan Work?
- You pay a premium to ensure that you receive a Guaranteed¹ Income. The premium can be paid in one lumpsum payment, for a specific term, or for the duration of the insurance.
- The insurance business uses the premium for two purposes: providing life insurance and investing in low-risk, non-market-linked channels for guaranteed¹ wealth creation.
- The life insurance coverage lasts for the duration of the policy. If anything goes wrong during this time, the sum assured is the death benefit that your family will receive.
- Life cover is provided for the duration of the policy and it is the amount assured to the authorized beneficiary in the event of your death.
- If you survive the policy term, the premium paid is refunded along with guaranteed¹ returns as maturity benefit.
What Is The Eligibility Criteria For A Guaranteed Income Plan?
- Most of Guaranteed Returns Income Plan are designed for people with a stable source of income who fall in the age bracket of 18-60 years.
- The policy term for any guaranteed income plan usually extends from 10 years to 30 years.
Features Of Guaranteed Returns Plan
Insurance Companies like Edelweiss Tokio Life offers Guaranteed Returns Plans, which are both participating and non-participating monthly/quarterly/annual or lumpsum income plans. The policyholder will pay a premium for the duration of the plan. You can decide the duration of your plan as per your age and financial position. Once your plan reaches the set maturity, you will start receiving guaranteed¹ income. Guaranteed Income Plans are the best choice for individuals looking for assured returns for their various life goals including a peaceful retirement. Below are a few notable features of the second income or guaranteed income plan.
- The policy duration for salaried adults between the ages of 18 and 60 years varies from 10 to 30 years.
- It's a form of life insurance contract that pays out a regular income for a set length of time, usually between 10 and 30 years.
- Provides vested reversionary bonus/terminal bonus, if any, at the maturity date.
- Benefits for death as well as maturity income are included.
- Provides the benefit of being tax-free³.
- The duration of a plan can range from 10 to 30 years.
Other features of a Guaranteed Income Plan includes:
- Tax-Free³ Payouts – A guaranteed income plan guarantees that once the policyholder has paid all their premiums, they will receive monthly income payments for a set period. According to section 10(10D) of the Income Tax Act of 1961, the income earned from the plan is exempted from tax-deductions³.
- Flexibility to Select Income Type – A plan like Edelweiss Tokio Life – Premier Guaranteed Income offers flexibility to select your income type based on your life goals. You can choose from four plan options – Lumpsum, short-term income, long-term income, and retirement income.
- Guaranteed¹ Protection - The assured protection includes death benefits for the insured. If you unfortunately die during the term of the guaranteed income plan, the individual selected as the beneficiary has the choice of opting for the payout type based on the plan features.
- No-Waiting Period - Unlike other investment plans, in a guaranteed income plan, the policyholder starts getting the payouts as soon as the premium payments are over. Once the plan's tenure is over, the policyholder will begin getting the sum assured through monthly payouts.
A guaranteed income plan comes with several options and benefits that might help you relax especially once you retire. It can also assist you with meeting any future major bills, especially during these unprecedented times that your family may incur. Before deciding on a guaranteed income plan, you should assess your current financial condition as well as your future ambitions and requirements. You can also get guidance from a representative of the Edelweiss Tokio Life Insurance to make an informed selection based on accurate information.
When your guaranteed investment plan matures, the income received can ensure that you can maintain your quality of living regardless of market conditions. This assurance distinguishes it as one of the most appealing and reliable investment options.
What Riders Are Available With A Guaranteed Returns Plan?
The following six riders⁹ are available with Edelweiss Tokio Life Savings Plans:
Reasons Why You’re Bound To Love Us Back
Asia's Best Insurance Company
Asia's Best Insurance Company Award for CSR Activity & Digital Sales Channel^¹
Life Insurance Company of the Year
BFSI Excellence - Life Insurance Company of the Year 2021^²
Best Customer Experience
Best Customer Experience & Contact Center Management - Life Insurance 2021^³
Fire Away Queries
What is the maturity benefit in guaranteed income plan?
Guaranteed Maturity Benefits is the guaranteed lump sum amount payable at the end of the insurance policy period. The amount of the assured maturity benefit will be determined at the start of the policy and will be based on factors such as your age, premium, policy term, premium payment term and gender. If the policyholder survives the policy term and makes timely premium payments as and when due, the policyholder will get the assured returns as the policy matures.
How does a guaranteed income plan work?
A guaranteed returns plan is a standard non-linked insurance policy with no risk because it is not related to market performance or fluctuations. Such a plan provides assured returns in the form of selected frequency of pay-outs.
With a guaranteed income plan like Edelweiss Tokio Life – Premier Guaranteed Income, you can have a premium paying term ranging between 5 to 12 years. The guaranteed income plan is designed to provide protection to your family from any financial loss in case of an untimely death or diagnosis of covered Critical Illness and offers a guaranteed¹ regular income and / or guaranteed¹ lump sum to you and your family, provided all due premiums are paid. It has four plan options to help you customize the plan as per your requirement.
How does this plan work?
Step 1: Choose the Premium you wish to pay, Plan Option, Premium Paying Term, Premium Paying Frequency, Policy Term, Income Benefit Pay-out Frequency (if applicable). Sum Assured on Death and Sum Assured on Maturity will be determined based on the above inputs plus your age, gender and income
Step 2: You have an option to choose Family Income Benefits.
Step 3: Choose additional riders to enhance your protection.
What is Guaranteed Lifetime Income?
A guaranteed lifetime income is a steady stream of income received after retirement. After the premium has been paid, the annuity begins immediately. It provides financial security to policyholders and allows them to continue their existing lifestyle even when they are not working.
Are there any additional benefits available with a guaranteed income plan?
Guaranteed Income Planss offer an optional feature called Family Income Benefit. Under this benefit, all future premiums are waived off in case of death of the policyholder and/or diagnosis of a critical illness. This benefit ensures that in case of such unfortunate events, you and your loved ones don’t have to compromise on future goals, as policy benefits will be continued.
What is the premium payment frequency for this guaranteed income plan?
For all plan options, the Premium Paying Term (PPT) options are 5, 8, 10 & 12.
How can I raise a claim under this guaranteed income plan?
- Written intimation to be provided by the claimant to Edelweiss Tokio Life.
- On receipt of the intimation, Edelweiss Tokio Life will communicate the documents required for processing the claim.
- Claimant to submit all the requisite documents.
- Edelweiss Tokio Life to process the claim after receipt and verification of all the documents.
What documents would I require to buy this insurance policy?
1. The documents required for buying this policy online are ID proof, Age proof, Residence Proof, and Income Proof.
For Proof of Address:
· Bank Statement or Passbook
· Voter's ID
· Ration Card
· Aadhaar Card
· Passport
· Electricity/Telephone Bill
· Driving License
Proof of Identity:
· Pan Card
· Aadhaar Card
· Passport
· Driving License
Proof of Income:
· Salary Slips - previous 3 months
· Income Tax Returns
· Bank Statement of the Previous 6 Months
Latest Form-16
What are riders? Which rider can I purchase with the Guaranteed Monthly Income Plan?
Riders are optional benefits that come at a low cost with your guaranteed income plan. Riders such as the Critical Illness Rider, Accidental Death Benefit Rider, Accidental Total & Permanent Disability Rider, Hospital Cash Benefit Rider and Waiver of Premium on Critical Illness Rider are available along with plans such as Edelweiss Tokio Life – Premier Guaranteed Income and Edelweiss Tokio Life – Guaranteed Income STAR.
How long does the monthly income benefit offered by the Guaranteed Monthly Income Plan last?
This depends on the payout duration offered by each plan and is based on your financial requirement. Guaranteed Income Plans offered by Edelweiss Tokio Life provide you the flexibility to choose your monthly income for up to 25 years.
We are always there for you! For queries, write to onlinesales@edelweisstokio.in
Disclaimer
1- This is applicable only if all due premiums are paid and the policy is inforce.
2- Policy loan are subject to terms & conditions of the product. Refer product brochure for more details.
3- As per provisions of Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.
6 - Income Benefit payouts are paid End of the Year.
9- Riders are Optional and available at extra cost. Please refer rider brochure for more details.
Edelweiss Tokio Life - Accidental Total and Permanent Disability Rider is only an Individual, Non-Linked, Non-Par, Pure Risk Premium, Health Insurance rider. UIN 147B001V03
Edelweiss Tokio Life - Accidental Death Benefit Rider is only the name of an Individual, Non-Linked, Non-Par, Pure Risk Premium, Health Insurance Rider. UIN 147B002V03
Edelweiss Tokio Life - Critical Illness Rider is only the name of the Individual, Non-Linked, Non-Par, Pure Risk Premium, Health Insurance rider. UIN 147B005V03
Edelweiss Tokio Life – Payor Waiver Benefit Rider is only the name of the Individual, Non-Linked, Non-Par, Pure Risk Premium, Life Insurance Rider. UIN 147B014V04
Edelweiss Tokio Life - Waiver of Premium Rider is only the name of the Individual, Non-Linked, Non-Par, Pure Risk Premium, Health Insurance rider. UIN 147B003V04
Edelweiss Tokio Life - Hospital Cash Benefit Rider is only the name of an Individual, Non-Linked, Non-Par, Pure Risk Premium, Health Insurance Rider. UIN 147B006V03
^^ Applicable where the taxable income exceeds Rs. 5 crores. Tax benefit of ₹ 64,116 is calculated at highest tax slab rate of 30% (in addition to income tax, a surcharge of 37% is applicable where the Taxable Income exceeds 5 Crores) on life insurance premium u/s 80C of ₹ 1,50,000. As per provisions of Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.
* Tax benefit of ₹ 46,800 is calculated at highest tax slab rate of 30% (in addition to income tax, cess of 4% is also applicable) on life insurance premium u/s 80C of ₹ 1,50,000. As per provisions of Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.
^¹ - Festival Of Insurance Awards 2020 on Sahara Samay Hindi News Channel on 27th December, 2020 - YouTube. For CSR Activity and Digital Sales Channel (Insurance Alerts Excellence Awards 2020)
^² - https://cloud-user-recordings-ffmpeg-converted-prod.s3-ap-south-1.amazonaws.com/recordings/ccd117b0-be48-11eb-9782-b590083730e8/3b7e25a3-b9b4-47b0-9f68-70eeb8062d60/ccd117b0-be48-11eb-9782-b590083730e8_0001_474830a2.mp4 (Quantic Business Media)
^³ - https://thealdenglobal.com/inflection-conference-awards/
Edelweiss Tokio Life - Guaranteed Income STAR is only the name of a Non-Linked, Non-Participating, Individual, Savings, Life Insurance Plan and does not in any way indicate the quality of the plan, its future prospects or returns. Please know the associated risks and the applicable charges from your Personal Financial Advisor or the Intermediary. Tax benefits are subject to changes in the tax laws. The tax benefits under this Policy may be available as per the prevailing Income Tax laws in India. For more details on risk factors and terms and conditions, please read sales brochure carefully before concluding a sale. UIN: 147N073V01
Edelweiss Tokio Life – Premier Guaranteed Income is only the name of an Individual, Non-Linked, Non-Participating, Savings, Life Insurance Product and does not in any way indicate the quality of the plan, its future prospects or returns. Please know the associated risks and the applicable charges from your Personal Financial Advisor or the Intermediary. Tax benefits are subject to changes in the tax laws. The tax benefits under this Policy may be available as per the prevailing Income Tax laws in India. For more details on risk factors and terms and conditions, please read sales brochure carefully before concluding a sale. UIN: 147N072V02
ARN : WP/2757/Aug/2022
