What are Assured Income Plans?
Assured income plans are the type of income plans that offer pre-defined income according to the percentage rate decided by the policyholder and the insurance providing company. This plan provides financial security to you and your family and provides guaranteed payouts and maturity benefits. Assured income plans come with tenure, ranging from 10 years to 30 years, and you can choose the tenure according to what matches your and your family’s financial requirements.
The eligibility for investing in an assured income plan is that the policyholder has to be between the age of 18 to 30 years.
Depending on your family and your financial requirements, you can choose from multiple payout options, such as
- Monthly
- Quarterly
- 3.Half-yearly
- Yearly
Let us now understand the importance of investing in assured income plans.
1. Financial Security
One of the key reasons to invest in an assured income plan is that it provides financial security to your family and you. This will ensure that you and your family will be easily able to fight the rising cost of inflation rates and can lead a convenient and hassle-free life.
2. Death Benefits
It is true that uncertainties and unfortunate situations do not come with warnings. In case of an unforeseen situation, such as the untimely demise of the breadwinner, the assured income plan will provide your family with a lump sum amount of death benefit. This will ensure that your family do not fall into the trap of financial constraints and can achieve their goals and dreams.
3. Tax Benefits
An assured income plan comes with the benefit of tax deduction as well. Under this plan, you can claim up to Rs. 1.5 lakhs of tax deduction benefits in one financial year under Section 80C of the Income Tax Act. 1961. However, these laws are subject to change from time to time.
4. Additional Rider Benefit
Investing in multiple insurance policies to avail of multiple benefits can be hectic. To make it easy and simple for you, an assured income plan brings the benefit of opting for an additional rider which increases the benefits as well as the cover you will be getting. The policyholder can choose from numerous additional rider benefits options such as Waiver of Premium Rider Benefits, Accidental Death Rider Benefits, Critical Illness Rider Benefits, etc. Please note that riders are not mandatory and are available at additional cost.
Your Way Forward
You now know everything about what assured income plans in India are and the importance of investing in them. It is crucial to invest in an assured income plan as it will provide a financial safety net to your family even if you are not there.
