10 Best Guaranteed Income Plans: Eligibility, Features & Benefits

Updated on Feb 05, 2024

By investing in a best guaranteed income plan, it can be ensured that you receive guaranteed returns to fulfill your life goals. Read on, if you want to know more about these plans i.e. best guaranteed return plan.

It is essential for everyone to do financial planning so that they can have better protection against unexpected expenditures. With multiple insurance companies offering several insurance plans with numerous benefits, it is easy for people these days to plan for financial stability in life. By investing in the guaranteed income plans, you can be certain about getting guaranteed returns which will help in fulfilling your goals to a great extent.

However, before investing in any plan, it is better to evaluate the plan in detail to know if it allows enough benefits of life coverage and maturity. Further, it should also provide death benefits to the beneficiary after you are gone. Along with these, bonuses, tax deductions, regular income, and peace of mind are benefits that you get out of these guaranteed plans.

What is a Guaranteed Income Plan?

A guaranteed income plan is a best investment plan with guaranteed returns. It is usually opted by people who are trying to create a corpus for their retirement years. The plan works like a regular income which can be received on a monthly, quarterly, half-yearly, and yearly basis.

Eligibility Criteria to Buy a Guaranteed Income Plan in India

People falling in the age bracket of 18-60 years can buy this plan. The policy term extends between 10 years and 30 years for them.

Features of Guaranteed Income Plans

The features of guaranteed income plans are mentioned herein below:

• Assured returns – As the name suggests, the Guaranteed Return Insurance Plans provide the insured with an assured return over the specified period of the policy. This return can be availed in the form of a lump sum amount, as immediate income to solve a particular purpose, or as short-term or long-term return.
• Coverage of life – From the date a Guaranteed Return Insurance plan is issued, it safeguards the family members of the insured under a life coverage. This coverage depends on the plan option chosen by the policyholder.
• Premium payment made easy – Guaranteed Return Insurance Plans give the flexibility to the policyholder to make the premium payment in different modes such as – annual/half-yearly/quarterly/monthly payments as well as you have the option to pay a single lump sum premium.
• Flexibility to avail return amount – Under this plan, the policyholder has the flexibility to avail the option of obtaining the return on the policy as a lump sum amount, as immediate income, or as income to fulfill long-term and short-term needs.
• Assured added benefits to boost corpus –   Under the endowment policy, you can enhance your corpus further with a percentage of guaranteed maturity benefit that gets accrued each year of the policy.

Benefits of Guaranteed Income Plans

Guaranteed Income Plans come with various benefits, which include:

• Maturity benefits – The benefits you receive under a guaranteed return plan at maturity comprise of the sum assured and reversionary bonus. You may also receive a terminal bonus if you are eligible for the same towards the end of the policy term.
• Death benefits – In an unfortunate turn of events, if the policyholder dies during the term of the policy, the nominee receives the sum assured along with a reversionary bonus as well as a terminal bonus (if eligible). The payout of the sum assured will the done in a way predetermined in the policy. For instance, let’s say a policyholder purchases a guaranteed income plan for a term of 20 years and nominates his/her son as the beneficiary. Now, if the insured dies during the term of the policy, the son will be eligible to receive the sum assured along with a reversionary bonus and terminal bonus as applicable.
• Rider benefits – Under these plans, you can enhance the cover of the plan by purchasing additional riders by paying an extra amount. For instance, you may buy Critical Illness Rider, Accidental Death Rider, Waiver of Premium Benefit Rider, and so on.
• Tax benefits – A policyholder can also avail of a tax benefit of up to 1.5 lakhs under this plan, which is another benefit of the policy.
• The benefit of risk mitigation – Plans with high risks might fetch you higher returns but they are equally risky. So, you can use a guaranteed income plan to diversify your investment portfolio and mitigate the high risks of other plans.
• Benefits of 100% guaranteed returns – These policies allow 100  % returns at 0% risks. These policies are not linked to the market and allow returns from the first day of plan initiation.
• The benefit of easy accessibility – The ease of buying and understanding a guaranteed income plan further boosts its benefits. These policies are easy and hassle-free to comprehend and are available with minimal documentation. Further, these plans come with no hidden charges allowing complete transparency for the policyholder.

Traditional Plans in India

10 Best Guaranteed Income Plans 2024 in India

Below we are discussing 10 such best-guaranteed income plans/guaranteed return plans in India to invest in 2024:

1. ICICI Prudential Cash Advantage Plan

The ICICI Prudential Cash Advantage Plan is one such plan that augments the regular income of the insured. It is a plan that offers an assured cash payout that starts at the end of the premium payment year.

Eligibility:

Features:

• Single lump sum payout
• Convenient mode of premium payment
• Complete protection for the entire family (in case of death of the insured)
• Provide a bonus if announced by the insurer

2. Max Life Guaranteed Income Plan 

Max Life Guaranteed Income Plan is another money-back plan that allows the insured to receive guaranteed income for over 10 years. If the insured passes away during the term of the policy, the nominee of the insured receives a lump sum death benefit.

Eligibility:

Features:

• Can change the mode of the benefit earned after the plan matures
• Allow transfer of income as a lump sum amount rather than receiving as monthly pay
• The minimum sum assured is 1 lakh rupees
• The minimum policy age is 25 years for entry
• No loan facility is available with this plan
•  A Surrender benefit is available

3. Bajaj Allianz Save Assure Plan 

The Bajaj Allianz Save Assure plan is again a conventional endowment plan that allows the insured a chance to earn money through savings by obtaining life insurance protection. The term of the policy is 15 years and 17 years and it comes with numerous benefits. Its limited payment of premium options helps in managing the financial needs of the insured at the time of emergency.

Eligibility:

Features:

• Suits best for those wanting to improve their financial conditions
• The minimum sum assured is Rs.1 lakh with no maximum limit
• Offers high sum assured concession to save money

4. LIC New Jeevan Anand

LIC New Jeevan Anand is a traditional plan. It is a non-linked endowment policy with participating options. This is the plan to choose if you want an assured income plan with the best guarantee and a life without trouble.

Eligibility:

Features: 

• The minimum sum assured is Rs.1 lakh, while there is no maximum limit
• Comes with several benefits
• Policy duration is 15 to 35 years, which can be selected as per the requirement
• The minimum age of entry is 18 years, while 50 years is the maximum age of entry

5. Edelweiss Tokio Life G CAP Plan

The Edelweiss Tokio Life G CAP Plan supports the insured in gaining wealth to allow them to reach their life goals. The plan comes with a guaranteed benefit on maturity along with death benefit. It also offers an assured accrual. This is a non-linked plan that is available with death and maturity profit.

Eligibility:

Features: 

• Assured advantages
• Allow the insured to choose the policy period and terms of premium pay
• The minimum entry age is 91 days, while 55 years is the maximum age of entry
• The policy can be bought for different durations of 10 years, 15 years, 20 years, 25 years, and 30-year as per requirement

6. SBI Life Smart Money Back Gold Plan 

The SBI Life Smart Money Back Gold Plan is a money-back policy with non-linked options.

Eligibility:

Features:

• The minimum sum assured is Rs.75,000, while there is no maximum limit
• The plan offers 4 options to suit your needs
• It offers rider benefits for comprehensive coverage
• The plan offers high protection
• The plan duration differs for 4 of its options including 12, 15, 20, and 25 years

7. Canara Smart Monthly Income Plan

This plan from Canara bank suits those who want to enjoy fixed monthly pay and bonus. Under this plan, you can pay limited premiums for over ten years to receive an initial income per month of 2000 rupees. In this guaranteed monthly income plan, monthly income increases slowly in multiples of 100. You are also entitled to enjoy a bonus as well as a final bonus at the time of maturity with this plan.

Eligibility:

Features:

• This guaranteed return investment plan allows the insured to earn high revenue
• Discounts available on high sum assured
• Monthly income begins after the 10th year period and continues with 15 years of pay-out

8. Tata AIA Life Insurance Secure 7 Plan 

This is a non-participating plan of the endowment. This guaranteed return insurance plan safeguards return on investment. Under this plan, you need to pay the premiums for 7 years and can start receiving guaranteed income as offered by the insurer from the 8th year onwards.

Eligibility:

Features:

• Maturity benefit is available on a 25% sum assured
• Ensure more income for the insured person
• The minimum assured sum is Rs.2.5 lakhs, while there is no maximum amount fixed

9. HDFC Life Sampoorn Samridhi Plus Plan 

This HDFC-guaranteed return plan is available in 2 options including a simple endowment plan and an endowment plan. The first one allows long-term savings, while the second one allows whole-life insurance.

Eligibility:

Features:

• It is a best-guaranteed return plan
• The minimum sum assured is Rs.65463 and no maximum limit is set
• The plan helps the insured to generate high income

10. PNB Metlife Money Back Plan

This is a traditional and best-guaranteed income plan with money-back that offers easy liquidity via regular payouts.

Eligibility:

Features:

• The minimum sum assured is 2.5 lakhs rupees, while the maximum is 2.5 crores rupees
• The plan doesn’t have any loan facility or additional rider facility
• 10% of the sum assured is received as a survival benefit during the fifth to nine years
• The duration of the plan is 10 years
• It allows more returns to the insured

You can buy a guaranteed income plan online. All that you would need to do is to find the right portal and provide the required details.

Are Tax Benefits Available Under the Guaranteed Return Plans?

Tax Benefits earned on the Invested amount:

By investing in a guaranteed return plan, you become eligible for up to 1.5 lakh tax benefits u/s 80(C) of the IT Act, 1961. This helps the insured to utilize the option and avail maximum tax reduction. This way, you can lower the overall tax liability.

Tax Benefits Earned on the Returns:

You can also earn tax benefits on the maturity amount or the returns earned under these plans. This tax benefit is available u/s 10(10D) of the IT Act. Here again, you can earn maximum returns on investment without any deductions.

Note that starting 31st March 2023, the policyholders of guaranteed income plans will have to pay a certain amount of tax on the plan if they are paying an annual premium of INR 5 lakh and above.

How Does a Guaranteed Return Insurance Plan Work?

• Under the Guaranteed Return Plans, the investor pays the premium to the insurer and in return the insurer guarantees an income at maturity at a particular interest rate over a pre-specified time period ranging between 5 to 30 years.
• However, depending on the market conditions as well as the interest rates offered while buying the plan, the return received by the investor from the insurer might vary.
• The Guaranteed Return Insurance plans are dissimilar from the traditional life insurance policies. The traditional plans are focused on the death benefit offered, whereas the guaranteed return insurance plans are designed to offer assured return to the investor.
• Another interesting feature of the guaranteed return plans is that the policyholder can either receive the payout on a regular basis or can get the accumulated amount at the end of the policy term.
• Further, the policyholder can even surrender the policy prior to the end of the policy tenure and choose to receive a lump sum payout.

When Should You Buy Guaranteed Return Insurance Plan

Whether and when to buy a guaranteed return plan would depend on the financial goals of an investor. For instance:

• People may buy a guaranteed return plan to secure the future of their children.
• These plans are chosen by some to save an extra amount as a second income option.
• Some people may opt for guaranteed income to serve as a retirement fund which is free from market risks.
• Overall, the guaranteed plans are suitable for any life goals at any age.

What are the Factors to Consider when Buying a Guaranteed Return Plan?

Various factors are considered while buying a guaranteed insurance plan. Here are some of these factors mentioned below:

• Plan your financial goals – This is the first step towards investment. You should know the purpose of your investment and if it aligns with your goals. If the return on investment will suffice the purpose of buying the plan. For example, if you are saving for the education of your child, or your retirement, or to serve you as a source of a second income, it should fulfill that purpose.
• Assured returns – Assured return is a factor considered by risk-averse investors. People who prefer a guaranteed return on investment must acquire these plans as they allow assured payout irrespective of market fluctuations.
• Savings in the long run – Since these are long-term plans, they come with a lock-in period, which might range from 5 to 30 years. So, people who want to save for the future in the long run may opt for these plans.
• Best retirement planning – If you are a risk-averse person and are looking for an ideal plan with low risk and greater stability to earn a fixed income during retirement, this is the plan for you.
• Diversification of portfolio – Rather than investing all your savings in highly risky plans with high returns, you may opt to diversify your portfolio and use different plans to spread your investments. This will lessen the risk to a great extent.
• Life insurance – A guaranteed income plan acts as a monetary security for your family that ensures their financial protection in case of your sudden demise. These plans allow financial security to your dependents and support them in meeting their needs in the future.

How to Buy the Best Guaranteed Income Life Insurance Plan Online?

The process of buying a life insurance policy online is very simple. All you need to do is to visit the official portal of the insurer you want to buy the policy from and follow the steps mentioned below. Alternatively, you can also visit paybima.com to buy the best GRP online.

• You can use the GRP calculator to furnish information like age, gender, DOB, income, if you are an alcoholic or you consume tobacco, if you are a salaried individual or are self-employed, etc.
• Once you provide such information in the calculator, you can see the different premiums from varied insurers being displayed on the screen. Now, as per your need modify the details like coverage amount, term of policy, mode of premium payment, mode of claim settlement and so on. Once you modify and submit the details, you will get the premium amount that needs to be paid for the plan.
• Now, you can choose from among the plans and buy the best plan by paying the premium online to the insurer.

Buy Guaranteed Return Plans from Paybima

You can buy a guaranteed return plan from Paybima via both online and offline modes.

Online Mode

• For the online mode, you can visit the official Paybima website at www.paybima.com.
• Duly fill out an online proposal form and submit it.
• Once you have offered your details, the executives at Paybima will get in touch with you.
• They will understand your coverage needs and as per your needs will recommend you the best policies.
• Once you are sure about the plan, you can fill out the form online and pay the premium.
• You will receive the coverage once the proposal is completed successfully.

Offline Mode

There are two options to buy a plan offline.

• You can get in touch with an insurance agent, broker, or intermediary to purchase the plan by filling out a form with your details and paying the premium in advance.
• Or you can visit the branch of Paybima directly to buy the most suitable policy. Again, you will have to fill out the proposal form and make a premium payment in advance.

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