Unlock Financial Security with Smart Insurance Plans

Every individual wants financial stability during retirement or challenging situations, such as sudden job loss, unavoidable major expenses, etc. While savings can help navigate challenging situations, excessive reliance on savings can exhaust them quickly. That’s why creating a guaranteed income stream unaffected by economic downturns or your primary job is essential. 

In India, Life Insurance Plans have emerged as a reliable tool for building guaranteed income streams, providing security and income predictability. This blog dives deeper into the topic to help people explore sustainable ways to generate fixed income streams.   

Understanding Guaranteed Income Streams

A Guaranteed Income Stream refers to a steady flow of fixed payouts received at regular intervals. These consistent payouts contribute to financial security regardless of market conditions. Whether you’re a retiree or a working professional struggling with rising inflation, having an additional, guaranteed income stream can make your life easy.

You can explore various options to help you create a stable income stream outside your job or business, such as immediate & deferred annuities, senior citizens’ savings schemes, post office Monthly Income Schemes, Assured Income Insurance Plans, etc.

Types of Life Insurance Plans for Guaranteed Income

Assured Income Plans

Assured Income Plans are structured life insurance policies that provide guaranteed income to policyholders for a predetermined period after the premium payment term ends. These plans are preferred for their low-risk profile and flexibility. If you’re looking for similar plans to build long-term stability, then consider Shriram Life Assured Income Plan (UIN: 128N053V05). It provides a regular income option to assist policyholders with their monthly expenses. The plan also features a life insurance cover with additional protection through riders to establish a financial cushion for your family. 

Whole Life Insurance Plans

Whole Life Insurance is a type of Traditional Permanent Life Insurance that provides lifelong coverage. The most notable highlight of these plans is that they accumulate a cash value over time that can be accessed through withdrawals or taking loans against the policy from the insurer. Unlike Traditional Term Insurance, these policies don’t expire as long as you continue paying the premiums. Once your plan has accumulated large enough cash value, you can use it to purchase an Annuity for consistent income.

Money-Back Insurance Plans

A Money-Back Insurance Plan can be a good addition to your portfolio as it provides periodic payouts at predetermined intervals. Since they ensure liquidity by giving a percentage of the sum insured at regular intervals, you can benefit from it by using the steady cash flow for children’s education, loan repayments, or other financial commitments for a smooth life. 

Immediate Annuity Plans

If you cannot wait several years to start receiving a steady, predictable income, then you should choose immediate Annuity Plans over other options. These plans start providing regular payments after a one-time lump sum premium payment. You can choose the payout frequency for convenience. The Shriram Life Immediate Annuity Plus (UIN:128N063V07) is the best plan in this category, providing nine different annuity options, surrender benefits, flexibility, etc. Investing in this plan can also earn you tax benefits u/s 80 C.

Deferred Annuity Plans

These Retirement Plans are designed for people who want to build a guaranteed income stream for the future, especially for their retirement. In this case, you’re expected to pay timely premiums over a period. You can then start receiving fixed payouts after the completion of the deferment phase. If you want to meet your financial obligations along the way, consider investing in Savings Plans or Investment Plans that complement your Shriram Life Deferred annuity plan (UIN: 128N105V03).

How Life Insurance Plans Ensure Guaranteed Income

Most Life Insurance Plans help create a guaranteed income stream for policyholders by combining structured premium payments, predefined payout structures, and fixed interest accumulation. If you’re investing in Non-Linked Non-Participating Life Insurance for income security, insurers will invest your premiums in a combination of low-risk, high-yield instruments to ensure steady capital growth regardless of economic downturns or fluctuating market conditions. Additionally, insurers operate under strict IRDA frameworks and guidelines to ensure policyholders receive the promised guaranteed income.   

Benefits of Using Life Insurance for Guarantee Income

Financial Security

Life Insurance Plans, such as Assured Income policies, help you achieve financial security at various life stages. They provide fixed income at predetermined intervals so policyholders can use it to fund their lifestyle expenses and maintain all financial obligations without any stress and pressure. Most policies also include life insurance coverage, creating financial security for your family after your death. 

Tax Advantages

One of the best financial security strategies you can follow to build an additional income stream is investing in Life Insurance Plans that align with your financial goals. You can enjoy tax benefits on these policy purchases u/s 80 C. It allows individuals to deduct their premium payments, up to INR 1,50,000 in one financial year, to lower their taxable income and liability. Some plans also provide tax-exempt maturity proceeds, subject to specific conditions. Death proceeds are always tax-exempt. 

Stability

Investing in the right insurance plan can help you build effortless financial stability. Since returns from most non-linked non- participating plans are fixed, you don’t have to worry about economic uncertainty at any point in time. These plans’ predictability and security lay a strong foundation for long-term stability. If you want to experience financial stability without worrying about economic downturns or market fluctuations, invest in options like Shriram Life Sunishchit Laabh (128N126V01).

It combines Life Insurance with guaranteed long-term income up to 40 years so you can live to your fullest without worrying about finances. The plan also provides multiple payout options, loyalty additions, additional benefits for female lives, two life cover options, etc., making it the best plan in the market. 

Choosing the Right Life Insurance Plan

You can only enjoy optimal benefits from using Life Insurance Policies for income generation if you invest in the right plan. We encourage individuals to always start by defining their financial goals, such as retirement fund creation, supporting a child’s higher education expenses, accumulating a certain amount for a child’s marriage, etc. Once identified, look for Life Insurance Plans that can help you fulfil these goals.

Before finalizing any policy, people must factor in their risk tolerance and consider applicable tax implications to make the right purchase. Anyone feeling confused or overwhelmed with the options, policy terms, etc., must consult a reliable financial professional for personalized guidance.

Real-Life Examples and Case Studies

Rajesh, a 60-year-old government employee, always prioritized financial security for his golden years. While he had a pension, he worried it wouldn’t be enough to cover the rising cost of living. Hence, he supplemented his pension income with a guaranteed income stream created through immediate annuity plans. This fixed, risk-free, and predictable income helped Rajesh enjoy a stress-free life, allowing him to focus on his hobbies and enjoyment.

Meera, a 45-year-old single mother, wanted to secure her child’s future without financial stress. She invested in a money-back insurance plan that provided her guaranteed payouts at predetermined fixed intervals, helping her support her child’s higher education effortlessly. She now lives confidently and worry-free, knowing her child’s future is protected.   

Conclusion

Everyone can benefit from an additional income stream outside of their primary business or job. It can help people achieve financial security and stability at different life stages. Whether planning for retirement, family protection, or future goals, investing in fixed- income- generating insurance plans can help you achieve all your goals. 

If you’re ready to secure your future or take a step to achieve your major life goals, start exploring the different Life Insurance Plans at Shriram Life Insurance. We provide numerous savings, retirement, investment, protection, and child plans designed to fulfil various financial goals. If you’re overwhelmed with the range of policies, contact our team for prompt support.