Guaranteed Plan

It has become very crucial to keep financial stability in present times. To cater to the needs of the insurers, the insurance provider has introduced guaranteed plans to people who want stable returns and high profits. These insurance plans focus on those people who want to invest in insurance plans that offer more financial security. These guaranteed insurance plans offer a person regular guaranteed pay-outs and maturity benefits.

The guaranteed income plan provides financial security to the investors by offering regular income at a predetermined rate.  The insurer has the option to choose the plan according to their comfort. The plus point of these plans is that they offer a source of income to the plan holder. The guaranteed insurance plans are considered traditional insurance plans that offer bonus benefits to the investors. 

In Guaranteed income plans, investors do not have to track the financial market. they can easily gain expected income with the help of these guaranteed plans. 

What exactly are Guaranteed Plans?

A guaranteed Plan offers assured profit to the plan holder. It can also be counted as a traditional insurance plan that offers the policyholder different benefits like maturity benefits, life coverage, and guaranteed income. Thus, investors can have an alternative source of income in the form of these insurance plans.

Guaranteed plans can be purchased by any individual who is eligible. The plan holder has the choice to choose the payment period according to his/her comfort. It can be given in monthly, yearly, or lump sum amounts.

With the help of Guaranteed plans, a person can fulfill their financial goals. They can also carry their dreams of buying a house or car. They can also grow their assets with the help of guaranteed plans. These plans are also ideal for those people who want to give their children a bright future through quality education.

These plans can help you lessen your financial burden. You can also go for a guaranteed plan according to your financial needs and financial goals. These traditional insurance plans will not disappoint you in terms of stability, higher returns, and financial growth.

Best Guaranteed Plans available in India in 2022

There are numerous insurance provider companies in India that offer different types of insurance plans. Some of the best-guaranteed plans for the year 2022 are mentioned in the table below-

Eligibility

Anyone can buy Guaranteed income plans if they are a salary-based worker. The age should be between 18 to 60 years. These guaranteed plans have a tenure of 10-30 years.

Features

Guaranteed plans are also considered as an alternative to Insurance plans to gain a regular income for a definite term. The term can vary from 10 to 30 years.

• These Guaranteed plans Offer Bonus plans such as bonus benefits alongside terminal bonuses. These bonuses are paid to investors when their plan matures.
• The plan holders have the option to gain maturity benefits as well as death benefits.
• With the help of Guaranteed plans, the insurers are also eligible for tax benefits. 
• The policy term of these guaranteed plans is about 10 to 30 years.

Benefits under Guaranteed Income Plans

Guaranteed Income plans have many benefits. Some of those benefits are mentioned below-

Maturity Benefit

We all invest to gain higher profits after the completion of our insurance plan. With the help of a guaranteed insurance plan, one is eligible to gain Maturity benefits alongside additional profits in the form of a bonus. Terminal bonuses and other types of Bonuses are offered under this insurance plan.

One can buy the plan for 15 years and get a payment on a regular basis on predetermined terms. You should invest in these plans after analyzing the pros and cons of your investment.

Death benefit

In case the policyholder dies, then these guaranteed plans offer the assured money to the nominee specified by the policyholder.  The nominee is also eligible to receive additional benefits in the form of terminal bonuses and reversionary bonuses. The payouts are paid to the insurers over a 15 years period or according to the policy plan. If the policyholder dies during the active term of the plan, then the plan holder becomes eligible to get all the related benefits of the plan alongside other benefits.

Income Tax Benefits

If you are looking for insurance plans that can provide you tax benefits then you can opt for the guaranteed plans without much worry. The guaranteed plans are tax-free under the Income-tax act 1961 under section 80C and Section 10(10D). The maturity amount earned after the completion of the policy is tax-exempt according to the terms and conditions mentioned in the plan.

Additional Rider

The traditional or guaranteed plans offer many inbuilt rider options to the Policyholder. These riders offer extra protection to the insurer and his/her family. The guaranteed insurance plans offer the investor completely relevant returns. These fixed returns are unlike ULIPs that do not have a definite return rate. 

The Guaranteed income plans also include add-on riders like Accidental Death Benefit Rider.

Some Guaranteed income offer complete guaranteed returns. The other plans offer partially guaranteed returns.  You can buy these guaranteed plans with the help of different websites available online. These plans also offer the investor to choose the best suitable plan for himself/herself.

Some of the riders under these plans are mentioned below-

Disability rider:  the disability rider protects the policyholder in case he/she gets into an accident and becomes disabled. The guaranteed plans offer the facility to gain profit and the sum assured.

Critical illness Rider: The Critical illness rider of guaranteed plans offers the assured sum to the policyholder and also provides medical coverage to them. With the help of these add-on riders, even if you get into an accident, you get protection and medical coverage. Thus, Guaranteed Plans are very beneficial for common people who are salaried.

Loan Facility: The investors also have the choice to opt for a loan while purchasing a guaranteed plan. You can avail of a loan of up to 80% of your surrender amount. The rules related to loaning services can differ from person to person. Before going for loans, make sure to calculate all the plus and negative points so it does not trouble you in the future.

Why should you choose Guaranteed plans?

There are many benefits if you choose guaranteed plans. These plans offer for a term of 8 to 15 years, a regular income to the investors. These pay-outs come under the limited benefit option. 

The policyholder becomes eligible to receive a regular payment after the completion of the 2nd year of the guaranteed plan.

• One also gets life coverage while purchasing guaranteed plans. You do not have to worry about your family after you. With the help of Guaranteed plans, you can offer your family much-needed financial protection.
• You also have the choice to build wealth with the help of additional benefits like terminal bonuses and reversionary bonus facilities. 
• Not only that but guaranteed plans also offer people or insurers tax benefits under the Income-tax act 1961. One can also opt for a loan under this plan. However, before buying a guaranteed plan, you should know what your financial goals are. You can opt for different guaranteed plans offered by different insurance providers. It is advisable to do your research before buying any plan so you can earn higher results.
• Therefore, with the best-guaranteed plan for yourself and your family, you secure your family during financial emergencies, provide your child with a solid education fund, and have an alternative source of income without much effort.

Things you need to consider before buying a Guaranteed Plan

Everyone wants to have a secure financial future without much hassle. There are many plans available in the market that promise higher returns to the investor. However, with higher returns, there comes a risk of financial loss. 

• It can be witnessed in ULIPs or Market Linked plans that offer less relevant returns to the investors. These plans may promise higher returns but nothing is sure. Unlike these plans, the Guaranteed plans are quite different. For the long period, these plans can offer you a regular income alongside an assured or fixed return guarantee. 
• But if you are thinking of buying a Guaranteed plan then there are a few things you must consider beforehand. You need to make sure what is the reason for you to invest in the specified plan. You need to be clear about your financial needs. You should consider how much profit you will earn by investing in these plans.
• Another thing you need to check is the amount you have to pay to keep the plan active. You should check the premium amount to see if it is affecting you negatively. You can always choose alternatives so it is important to keep a balance between your expenses and investment life. 
• If you are a family person then you should also check how much wealth you can generate by investing in this insurance plan. You can also check the alternative plans offered by other insurance companies. Lastly, make sure you know everything about the plan you are going to buy. You should keep your financial goals in mind before buying any insurance plan.

What are the factors that affect the Guaranteed plan?

You must know that Guaranteed plans are a type of traditional life coverage plan that offers regular income and insurance service to the policyholder. However, the premium, tenure, or benefits of your insurance plans are largely affected by different factors.

 Some of the factors include your lifestyle. a healthy and young person gets a low premium rate in comparison to a mid-aged person. It is because of the age difference and lifestyle difference. Young people tend to be healthy in comparison to mid-aged people. Thus, if you have a bad lifestyle habit then your premium rate is maybe high or maybe you need to go through a medical checkup before buying a guaranteed plan.

Before buying a Guaranteed plan, make sure what you are looking for. Many investors who do not like to put their hard-earned money on stake choose guaranteed plans as they are more stable and offer decent returns. Some investors invest in these plans due to their lucrative tax benefits. 

You may decide what you want before investing in these plans to avoid any confusion in the future. Choosing a Guaranteed plan is an excellent option for those insurers who are risk-averse and want to follow simple traditional investment plans.  You should also make a financial plan before investing in these plans. It will help you make the right decision in urgent moments.

Guaranteed Plan or Insurance Plans

You should note that insurance plans can not become the best investment choice if you are looking for one. However, there are several insurance providers that offer guaranteed income via different plans over a period. It creates a question in the mind of the insurer whether they should buy this insurance plan or not.  But the main reason to buy a life insurance policy that can not be overlooked is offering life coverage to the investor. 

Guaranteed plans are like additional benefits on these life insurance policies that offer the insurer benefits of disciplined savings alongside regular income. These guaranteed plans can complement the financial goal of the insurer. Here is where guaranteed plans make a difference.

These Guaranteed plans have a definite amount and time to offer the additional income to the insurer if he completes the plan without any accident/death. The option to receive these payments accordingly has made these plans even more attractive. In case your guaranteed plan has a limited premium plan, then the regular pay-out is offered after the completion of the premium period.

It can also start after the plan matures or after the plan holder dies during the policy period. Therefore, it is important to consider buying these plans as they can be a big financial decision 

Who should go for guaranteed income plans?

An insurer should consider why he/she wants to opt for the Guaranteed plans in the first place. It solely depends on the individual’s financial needs, financial goals, risk appetite, and investment horizon.

Guaranteed are suitable for the following individuals –

• If you are planning to have an insurance plan over a long period or medium period, you can go for a Guaranteed income plan. 

• If you are a person who hates taking the financial risk and want to have a safe investment option alongside life coverage
• If you want to gain guaranteed profit or return in the long run without taking any financial risk. Guaranteed plans can help you build financial security over a long period.
• Guaranteed plans are ideal for those people who want to invest via their insurance plan. The guaranteed plans offer this opportunity to the insurer.
• If you want to earn a regular income on your insurance plan then guaranteed plans are the best choice for you. The additional amount earned can help you in tough financial times or in building wealth.

Investment choice other than guaranteed plans

If you specifically want to generate wealth or earn money via investment, then you have several alternatives against guaranteed plans. These options include fixed deposit, Public provident fund, recurring deposits, Post office deposit scheme, national saving certificates, etc. however, one must note that these wealth-building plans do not offer investors the facility to invest that is offered under Guaranteed plans.

Reasons to buy Guaranteed plans

It is the cherry on the top if you get the option of life coverage and investment at the same time. We have mentioned some important reasons for you to buy a guaranteed plan-

• With the help of guaranteed plans, you can reap the benefits over a long period by paying premiums for a shorter term. 
• You can reach your long-term or short-term financial goals easily with the help of guaranteed plans. The guaranteed income offered under these insurance plans makes them an attractive investment choice for investors.
• With the help of guaranteed plans, one gets a financial backup in the form of periodical pay-outs. You can follow your dreams with the help of this additional income. These plans offer a fixed income of around 20 years.
• With the help of guaranteed plans, one is eligible to gain lifetime income. 
• When you choose a guaranteed income plan, you get all the deposited amount back in the form of an assured amount and additional benefits.

• In case you fail to pay one premium of your guaranteed plan, you are still eligible for complete life coverage. 
• The add-on riders available on your guaranteed plans make it a lucrative insurance plan.
• You also get the tax benefits on premiums and additional earnings according to the terms and conditions and Income tax act 1961.

Note- If you are confused about what is the best investment choice for you, then you can take the help of a professional financial advisor.

Guaranteed Plan  – FAQs 

Q1. What are some best-guaranteed plans available in India in the year 2022?

Ans. Some of the best Guaranteed insurance plans available in India are mentioned below-

1. Aegon Life Term Plan
2. Aviva i-Life Plan
3. Aviva Dhan Samriddhi
4. Bharti AXA Aajeevan Sampatti +
5. Birla Sun Life Vision Endowment Plan
6. Bajaj Allianz Save Assure
7. Canara Smart Monthly Income Plan
8. Canara HSBC OBC Smart Stage
9. MoneyBack Plan
10. Future Generali Assure Plus
11. Exide Life Guaranteed Wealth Plus

Q2. Can I earn additional income with the help of Guaranteed plans available in India?

Ans. Yes, you can earn additional income with the help of guaranteed plans in India. It is an insurance plus investment plan that offers life coverage alongside monetary benefits. 

Q3. Are there any tax benefits on Guaranteed plans?

Ans. Yes, the tax benefits available on guaranteed plans depend on how much you earned and on the income tax act 1961. It mainly depends on the type of plan you have chosen, the tenure, and the additional benefits.

Q4. Can I consider guaranteed plans as investment plans?

Ans. No, you should not consider guaranteed plans as investment plans if you are looking for income only. However, if you want an insurance policy that offers life coverage alongside stable income then guaranteed plans are the best insurance plans for you.

Q5. Can anyone apply for Guaranteed plans in India?

Ans. Yes, anyone above the full age who has the capacity to pay the premiums of a guaranteed plan is eligible to buy the plan.  However, one must not blindly invest in a guaranteed plan and consider his/her financial goals first. A better understanding of insurance and investment instruments can help people make the right investment choice. 

Q6. What is the alternative for people who want to gain a regular income through investment over a long period?

Ans. The alternative of Guaranteed plans in Public provident fund, recurring deposits, Post office deposit scheme, national saving certificates, etc. You should check what is the most suitable investment plan for you. You can also invest in the stock market if you have a high-risk appetite.