How to Boost your Savings with an Assured Income Plan?

Every individual wants financial security for themselves and their family, especially during their golden years and difficult times. They invest in financial products as part of their long-term savings strategies to create this security. While numerous financial products can help people maximize savings and get income assurance, Assured Income Plans provide superior benefits. In this blog, we guide you through these plans and their benefits so you can make an informed investment choice.

What are Assured Income Plans?

Assured Income Plans are specialized financial products provided by insurance companies that give dual benefits - Life Insurance coverage and steady income for a predetermined period. They combine the best features of Savings Plans, Retirement Plans, And Child Plans.

Under these plans, a policyholder makes regular premium payments to keep the plan active. After the plan’s premium payment term is completed, the policyholder receives regular income. You can receive monthly, quarterly, or annual payouts, depending on the provided payout terms.

Assured Income Plans play a crucial role in financial planning because they provide financial security by ensuring predictable, guaranteed income after the policy term. They also help achieve long-term financial goals, such as funding a child’s higher education, meeting day-to-day financial expenses, building a property, etc.

Advantages of Assured Income Plans

• Guaranteed Returns

Guaranteed returns are a hallmark feature of all Assured Income Plans. Unlike market-linked investments, the returns from these plans aren’t subject to unpredictability and market volatility. They provide predetermined fixed-income assurance.

The guaranteed returns provide financial security and comfort to policyholders, helping them efficiently manage their financial obligations. If you want fixed returns, avoid investing in stocks, mutual funds, SIPs, etc., as their returns fluctuate with market volatility.

• Stable Income Stream

One of the biggest benefits of Assured Income Plans is that they provide a stable income stream. Insurers accumulate your premium payments as savings and invest in low-risk financial instruments that grow with time. It is returned to the policyholder on policy maturity according to the pre-agreed payout frequency. These plans provide retirees a dependable source of post-retirement income, helping them maintain their lifestyle without worrying about financial instability. 

It also emerges as a reliable solution to address the recurring financial needs of individuals of all ages. While Assured Plans are great for financial stability, you can enhance your safety net by investing in complementing Protection Plans and Retirement Life Insurance Plans.

• Low-Risk Investment

Assured Income Plans are inherently low-risk, making them attractive for individuals seeking financial stability. Since your premiums aren’t invested in market-linked financial instruments, the returns don’t deplete with market fluctuations. Your capital remains secured, and you receive increased returns on maturity.

Unlike high-risk investments, such as equities, cryptocurrencies, IPOs, hedge funds, etc., your assured income investments are immune to market risks. It can benefit people who prefer capital preservation and financial security over high returns.

• Tax Benefits

Utilizing the available tax benefits while filing income tax returns is an excellent way of maximizing your insurance benefits. You can claim premium payments as deductions u/s 80C, subject to a maximum of ₹1,50,000. Deductions are also available u/s 80D, depending on the number of people you’re paying premium for and your parent’s age.

If you have multiple insurance and Investment Plans, consult a professional CA for personalised guidance on tax savings. You can also refer to expert financial planning tips online to optimise tax savings. These savings can enhance your overall wealth accumulation effort, so you have more money saved for a secure future.

How to Maximize Savings with Assured Income Plans

• Start Early

Investing in Assured Income Plans from a young age can increase your returns. It allows you to purchase plans with longer duration, such as 10, 12, or even 15 years, so the capital increases significantly by leveraging the power of compounding. It helps you create wealth over the long term. Young investors can also maximize savings by securing lower premiums on Guaranteed Income Plans, translating to higher returns in the future. 

• Choose the Right Plan

You must choose the right Assured Income Plans to gain maximum benefits from your investments. Since numerous similar products promise financial security, pick a plan that aligns with your goals. Start by deciding your goal, such as funding a significant life event, securing a steady retirement income, ensuring economic stability for your family, etc. 

Once the goal is finalized, identify and compare multiple assured income plans based on their payout options, premium affordability, flexibility, features, terms and conditions, etc. 

A thorough evaluation will help you pick a plan to fulfil your goals and aspirations. If you’re confused about the available options, consider exploring the Shriram Life Assured Income Plan  (UIN: 128N053V05). Unlike similar options, this plan helps you create a financial cushion at low premium payment plans. It features a regular, predictable income option to support your financial obligations easily. 

• Regular Contributions

Regular contribution is key to maximizing savings and the plan’s overall benefits. It helps create a larger fund over time so that you can avail of higher payouts upon policy maturity. Consistent contributions keep your policy active and build financial discipline, which is crucial for long-term wealth creation. 

• Reinvesting Returns

Policyholders can consider reinvesting their returns to create more income avenues. Reinvesting in relevant financial instruments can help your income grow using compounding principles. You can invest a certain percentage of the proceeds or the entire lumpsum payout based on your risk appetite and financial needs. 

You must select the financial instruments according to your current and long-term financial goals and risk profile. If you’re unsure where to reinvest your returns, we recommend consulting professional financial advisors for personalized guidance. 

Who Should Consider Assured Income Plans?

Anyone who prioritizes financial security can invest in assured income plans. If you’re in your 40s and 50s looking to create risk-free and stable post-retirement income, investing in assured income plans can be beneficial. It can build a predictable and steady income source during your golden years that sustains your lifestyle without any worry. 

Parents willing to create funds for their child’s higher education and marriage expenses can also consider these plans. Guaranteed Income Plans are generally ideal for individuals with low-risk profiles who prefer predictable, fixed income over market-linked higher returns. 

Conclusion

Assured Income Plans are valuable additions to any financial portfolio, providing guaranteed low-risk returns, a stable income stream, and tax benefits. You can invest in the assured income plans provided by Shriram Life Insurance to enjoy all these benefits. Besides assured income plans, Shriram Life Insurance also provides various plans for different financial goals, such as retirement planning, savings, child education, buying a house, etc. You can explore our diverse savings, investment, retirement, protection, and child plans designed to help you achieve financial security and fulfil your short-term and long-term financial goals.