New Delhi: Planning properly for retirement is a major objective that you should not neglect by all means. This is because you should always have ample funds saved up for your sunset years. In this context, there are several plans available to help you fund your lifestyle and expenses once you retire. Yet, there are always issues related to market volatility of your investment and also if something happens to you during your working years. Now, these are things that you can ensure with a guaranteed return/income plan that comes with a guaranteed payout.
How a Guaranteed Payout Plan Helps You?
A guaranteed payout plan can help with the following aspects:
- You will get ample financial stability and mental peace once you retire, with adequate income to support your lifestyle and costs.
- You can select payouts for your lifetime or for a fixed duration, depending on the terms of the plan.
- The payouts are guaranteed without any market-linked volatility or fluctuations. While buying a guaranteed income plan, you will get to know the return that is fixed upon maturity or as periodic income payouts during the policy term, depending on the plan. It will help you plan how to meet your financial goals after retirement.
- In the interim, if anything happens to you, then the policy will pay out a sum assured to your nominees as per the policy terms. They can use the funds to financially sustain themselves without depending on anyone. It will give you mental peace as well, knowing that your family can get by financially even when you are not around.
- There are tax benefits on offer, since the premiums you pay may qualify for tax deductions under Section 80C of the Income Tax Act, up to a limit of ₹1.5 lakh annually. However, maturity benefits may not always be tax-free under Section 10(10D), particularly if the annual premium exceeds 10% of the sum assured.
You can compare multiple plans in terms of their returns and other features before making a final decision. The best part is that riders can also be added to these plans to widen your scope of coverage and that too for a nominal increase in your premiums. Some of the popular choices include waiver of premium, accidental disability or death, and even critical or terminal illness. This way, you will financially protect your family in various untoward situations with aplomb.
Choose a Guaranteed Income Plan for a Sound Financial Future
Selecting a guaranteed payout or income plan can be a great move on your part. You will get a steady income stream without any fluctuations or volatility in the market. The plan can help you address long-term goals since you already know the returns you will get. At the same time, you can easily meet your expenditure/costs after retiring, while accounting for your financial goals.
Thus, you can be at peace all throughout your sunset years without worrying about your investment being compromised in any way. The tax benefits throughout the premium-payment period are also the icing on the cake. So is the life coverage since it covers your family against any unforeseen scenarios. Hence, it makes sense to opt for these plans without any delays.
