Does Life Insurance Ensure a Regular Income?

People often choose Life Insurance products for their Life Insurance coverage so their family remains financially secure in the unfortunate circumstance of their passing away. However, these financial products provide more than life coverage. Some Life Insurance products provide regular income features to support the policyholder’s financial obligations.

If you want to build a financially stable life for yourself and your family, investing in such plans should be part of your long-term financial planning. The guaranteed income received from these plans can become an additional income source or replace lost income, enabling you to lead a worry-free and financially secure life. We discuss regular income from Life Insurance in this blog so you can make informed financial investments to achieve economic stability.

What is Regular Income from Life Insurance?

Regular income from Life Insurance policies refers to the structured payouts received by policyholders upon policy maturity or during the pre-agreed period. Depending on the policy's terms and conditions, you can receive the payouts as regular income. For example, if you invest in the Shriram Life Premier Assured Benefit Plan (UIN: 128N094V04), you can receive annual earnings from the last premium payment term till the policy maturity.

This income can be a percentage of your policy’s annualized premium, a lump sum amount, or assured monthly payments, depending on the pre-agreed terms. Since insurers invest your premiums in low-risk financial instruments, the accumulated savings and growth make it easier to pay policyholders regular income. Unlike risky, market-linked investments, such as equities, mutual funds, SIPs, etc., these plans provide predictable and stable income for financial security.

Benefits of Regular Income from Life Insurance

Guaranteed Income

One of the most notable benefits of Life Insurance with a regular income feature is assured income. Policyholders can receive consistent and predictable income at the predetermined period, eliminating financial uncertainty. While volatile options like equities, ULIPs, and cryptocurrencies may provide higher return potential, they can never match the financial stability and certainty insurance-based income plans offer. If you value assured income over risky higher yields, explore the different types of savings insurance plans with regular income provided by Shriram Life Insurance.

Stable Financial Planning

Individuals planning for retirement and other long-term financial goals must include at least one regular income-generating insurance product in their portfolio. It can create a secure income stream that can handle their day-to-day expenses, medical costs, and other expenses essential to sustain the desired lifestyle. At Shriram Life Insurance, we offer numerous Savings Plans and Retirement Plans with regular income features, so browse them to find the ideal financial product.

Low-Risk Investment

Most insurance plans with guaranteed income are inherently low-risk. They operate under strict regulatory oversight and maintain conservative investment strategies to reduce risk exposure. Unlike market-linked insurance products, these plans don’t get impacted by economic downturns or market fluctuations, preserving your capital and steady growth. If you want a stable, risk-free retirement income from Life Insurance, you may consider investing in Shriram Life Assured Income Plan (UIN: 128N053V05). 

It is a non-linked and non-participating Life Insurance product comprising the best features of Savings, Retirement, and Child Plans. This plan provides a regular income option that can assist you with monthly expenses during retirement or at a predetermined life stage.

Tax Benefits

The benefits of Life Insurance plans with guaranteed income aren’t limited to life coverage and regular income. Policyholders can use these plans as efficient tax-saving financial instruments. For instance, if you invest in the Shriram Life Early Cash Plan (UIN: 128N093V02), you can enjoy guaranteed income from the 1st policy anniversary, life coverage, and tax savings, among numerous other benefits.

You can claim the amount paid as premiums u/s 80 C to lower your taxable income and increase your savings. The deductions are capped at ₹1,50,000 u/s 80 C. Maturity proceeds can be tax-free if certain conditions are met. Maturity proceeds received as death benefits remain tax-exempt. We recommend consulting your financial advisor for efficient tax planning.

How to Choose the Right Life Insurance Plan for Regular Income?

Assess Your Financial Goals

Everyone has different financial goals, so you should always start by assessing your financial needs. Estimate how much regular income you would need to effortlessly lead a worry-free life after retirement or a specific period. Factor in inflation and arrive at the ideal amount.

You should also determine whether you’re investing to create retirement funds or meet your children’s major life events, like their wedding or higher education expenses because not all insurance products are ideal for every goal. If your primary goal is financially securing your retirement years, look for Retirement Plans. Read about the varying benefits of Retirement Plans so you know what to expect while investing.

Compare Different Plans

There are numerous Life Insurance products in the Indian market, so you must focus on finding the plan that aligns with your financial goals and needs. You must evaluate every plan based on its terms and conditions, flexibility, policy terms, available riders, Life Insurance coverage, payout options, and premium payments. 

If you’re looking for regular income from Life Insurance with life protection, consider plans like our Shriram Life Assured Income Plan. Our Shriram Life Wealth Pro(UIN: 128L096V01) is a better option if your primary consideration is life coverage and wealth accumulation. 

Consider Professional Advice

Navigating the financial world alone can be overwhelming for many individuals. If you’re experiencing challenges in finding the appropriate investment options or cannot understand how certain insurance plans fit into your long-term financial planning, we encourage consulting professional financial planners/advisors. Since they better understand different financial tools and markets, they can guide you better to achieve financial stability and enjoy the most Life Insurance benefits.

Conclusion

Every individual wants to create multiple secure income streams to strengthen their financial future. While there are numerous ways to achieve it, none comes closer to the benefits provided by insurance-based regular income plans. They provide certainty with their guaranteed income so that you can plan your expenses accordingly. If you want to secure your family’s financial future when you aren’t around or achieve financial stability to live a comfortable post-retirement life, you must consider investing in the appropriate Life Insurance plans featuring regular income benefits.