Home Money Family Protection and Savings Plans: Understanding the Correlation

Family Protection and Savings Plans: Understanding the Correlation

Financial stability is an imperative thing that any provider wants to assure their loved ones. In the highly volatile world of the 21st century, it is not an easy task to provide one’s family with complete financial security. Seeing the need for such security, insurers all over the world came up with the idea of a guaranteed income plan. This is literally the perfect choice for you if all you want to do is provide your family with a degree of financial security.

Who is the Guaranteed Income Plan Ideal For?

A guaranteed income plan is ideal for investors who are risk averse. If you are someone who does not want to take any big, flashy risks – and values certainty over everything else – then this is ideal for you. This is the kind of insurance plan that will allow you to establish a corpus fund for the next period of your life. It will be able to provide you with a guaranteed source of income later on in life.

If you want a steady stream of income that will supplement or replace your salary in times of need, then you should definitely go for a guaranteed income plan. If you couple this with a good savings plan, then you are going to be completely set for the next 20 to 30 years of your life.

This kind of plan comes with a life cover as well. In the case of your untimely demise, your loved ones will receive a payment that provides financial security. The maturity benefits of this plan will be helpful during the event of your retirement.

What Makes Guaranteed Income Plans an Ideal Instrument for Savings?

Here are some of the primary reasons why a guaranteed income plan is an ideal instrument for your savings needs.

  • A guaranteed income plan allows you to focus on your long-term financial goals. This is basically an investment for your future. You are going to be investing today so that you can reap the benefits in the future. It will allow you to fulfil all of your financial aspirations properly.
  • Insurance plans like these are also tax-exempted. In fact, you can claim an exemption of an amount of 1.5 lakh INR in the form of premium payments, according to Section 80C of the Indian Income Tax Act, 1961. Payments upon demise are also exempt from all income tax purposes.
  • Instead of a traditional savings plan, you are not going to receive a large one-time lump sum amount. You will receive a steady stream of income during your retirement or times of need. By having periodic payouts in place, the plan takes on the responsibility of managing all your funds.

Now, you know everything about guaranteed income and savings plans. If you want to provide your family with a fixed source of income in times of need, then a guaranteed income plan can be a very helpful instrument. Also remember, it is never too early to begin your savings! Choose a great plan and start saving money today.

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