India’s low penetration of insurance policies has been a result of a number preconceived notions over the years. New research has shown that Indian insurance policy seekers are now more aware of the benefits of life insurance. According to a survey that covered 30,200 households in India, more than 83% of urban households were aware of life insurance. This is a growing savings and protection tool. The study was conducted by the National Council of Applied Economic Research and Insurance Regulatory and Development Authority of India.
The assured income plan is a valuable tool for insurance buyers today. Let’s look at some reasons it is becoming a popular option for financial planning.
The Benefits of Assured-Income Plans
Death Benefits – One of many reasons investors choose an assured income plan over other options is that it provides financial security for the dependents. This includes A) handing over the Sum Assured amount to them in case of death, as well as distributing the remainder of the payouts according to policy terms. B) In the event that the insured dies after maturity or during the payout period, the nominee will be paid the sum assured amount and the remaining lumpsum.
Maturity Benefits: Any bonuses, such as a terminal Bonus, will be released at maturity. Other payouts will occur at regular intervals according to policy guidelines. This will ensure that the insured has a steady source of income. This can be very beneficial especially for taking care of retirement expenses. Anil would pay Rs.15 lakh annually as premium. In the next 15 years, a good guaranteed income plan could offer him up to 34 lakhs. From year 16 to thirty. Here’s how it works: Anil gets Rs. Anil receives Rs. 2 lakh per year as a regular income and Rs. 4 lakhs for additional income upon maturity
Tax Benefits – Tax deductions are provided by Section 80 (C), of the Income Tax Act. This is because the premium amount paid for these policies is provisioned with tax. The Section 10 (10D), Income Tax Act, also protects maturity proceeds from tax.
You can take advantage of an assured income plan to ensure that you are protected at all costs. You can invest in one now and leave all worries about your financial future behind.