There are many benefits to buy guaranteed income plan, understand important things here before investing
Guaranteed income plan is a kind of life insurance that gives you a guaranteed, stable and estimated income for a fixed period. In this, you can choose how long you want to earn income and can allend the plan with your financial goals and needs. You can also take decisions on payment options that are best suited for your needs and select the frequency of payment. Guaranteed income plans can be suitable for many long -term goals, such as retirement, buying home or property, installing college funds for children and much more. Let’s know what are its benefits.
Guaranteed income is fixed
Guaranteed Income Plan provides guaranteed income to the policyholder for a fixed period. That is, you can do your financial planning in advance and knowing that you can find peace of mind that you are sure to get a certain income despite the market conditions.
Tax exemption advantage
Guaranteed Income Plan also gives the benefit of tax exemption to policyholders. The premiums paid for such plans are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Also, the income received from these schemes is also tax free under Section 10 (10D) of the Income Tax Act, 1961.
Flexible payment options
Guaranteed income plan facilitates flexible payment options, so that policyholders can choose the frequency of income payment based on their financial needs and needs. According to Bajaj Capital, you can choose monthly, quarterly, half -yearly or annual payment option depending on your choice.
They protect against inflation
Guaranteed income plans also offer protection against inflation by offering a certain payment to grow over time. That is, the income obtained from these plans will increase at a pre-determined rate, which will help policyholders to maintain their purchasing power and also to meet their expenses in every phase of inflation.
No market risk
The fixed income schemes keep policyholders away from market risk. They do not bring them into contact because the payment is fixed and does not depend on market fluctuations. This makes these schemes a safe investment option for individuals who want to secure their financial future.
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