Financial stability is necessary to have a stress-free retirement life. Therefore, it is essential to have a sound and steady income source post-retirement. In addition to this, this income source should be free from market fluctuations. Thus, one plan which assures this is a guaranteed income plan. There are several monthly income plans in India offered by several insurance companies. You need to opt for a plan that provides reliable financial security and is consistent.
With a monthly income plan, you can meet all your regular demands. Moreover, it will provide an extra layer of financial security to your loved ones (beneficiaries of the income policy) after you. There are several reasons behind choosing the fixed monthly income plan nowadays.
Here, the top seven reasons prove how beneficial it is for an individual to choose an immediate monthly income plan.
7 Reasons to Choose a Guaranteed Monthly Income Plan
Here are the top seven reasons for an individual to choose a guaranteed monthly income plan:
- Steady and guaranteed additional income
One must have a guaranteed income to cover all regular expenses and meet the family’s financial demands. It ensures that your living level does not fall even after retirement. You can also meet all the unexpected costs with a guaranteed return plan.
- Benefit in terms of tax – Get a tax exemption.
There are several monthly income plans in India providing tax benefits. Since it provides many tax benefits, most consumers prefer to invest in them. Currently, premiums up to 1.5 lakhs paid to insurance companies can be claimed as tax exemptions under section 80C of the Income Tax Act of 1961.
- Maturity benefit
Saving for a long-term financial goal might be challenging when various programmes do not provide a safety cushion. A monthly income plan is different from a term insurance plan. It comes with maturity benefits. On the other hand, a guaranteed income plan allows you to save money while still receiving maturity advantages in the form of a lump-sum return once all the premiums are paid.
- Additional Riders with the investment
Individuals can add on additional riders of their choice, like illness, accidental injury, and many others, with the monthly income plan. In case of an accident, serious illness, or high medical costs, additional riders paired with these monthly plans provide extra security and coverage. For example, Tata AIA Policy offers a choice of multiple riders.
- Flexibility
The guaranteed income plan is one of the most versatile and customisable investment opportunities. The terms can be tailored to meet the policyholder’s needs.
- Loan benefits
You will likely be eligible for a loan once you reach the forfeit value of the guaranteed income plan. For example, a loan for 70% surrender value is possible. The guaranteed income plan might come in handy if you have an unanticipated financial emergency and need money immediately.
- Be ready to face unexpected needs
If you want to save for your child’s education, for their marriage, or for your retirement, you can do so. With a guaranteed income plan, you can achieve any goal you set. In addition, you can face all unexpected expenditures with efficiency.
Conclusion
Everybody wants to have a financially stable retirement life and a future ahead. The only difference is what insurance plan you choose for it. You can make the right decision by selecting the guaranteed income plan. This will add an extra layer of financial security to you, your future, and your family. In addition, you can get several additional benefits with the monthly income plan.