What is Guaranteed Maturity Sum Assured in Assured Income Plan?

Planning a secure future can become challenging when you’re uncertain of the returns your investments will fetch. Hence, more people are becoming increasingly cautious about evaluating their investment returns. If you’re investing in a Life Insurance Policy for financial protection and stability, you must focus on the guaranteed maturity sum assured that the policy will provide on maturity. 

This information will assist you in making informed monthly budgets that support effortless lifestyle management without exerting any financial strain. This blog discusses guaranteed maturity sum assured in Assured Income Plans so you can confidently invest in the right policies and gain better control over your financial future. 

Understanding Guaranteed Maturity Sum Assured

Definition and Importance

A guaranteed maturity sum assured is the fixed, predetermined amount an insurer agrees to pay the policyholder on policy maturity. This Life Insurance Policy maturity amount remains unaffected by external conditions, such as economic downturns, market fluctuations, etc. The amount’s predictability and stability lay a strong foundation for an individual’s financial future. It eliminates financial uncertainty, helping individuals make informed purchases, living expenses, etc., for a stress- free and comfortable life.   

How Guaranteed Maturity Sum Assured Works

Calculation and Payout

Insurance companies calculate this amount based on numerous factors, such as premium amount, policyholder’s entry age, policy term, premium payment term, etc. Insurers use actuarial calculations to determine this figure. While different insurers may follow varying calculation processes, it is generally expressed as a multiple of the annual premium or a percentage of the total premiums paid over the policy term. Once the policy matures, insurers may pay the maturity amount as a lump sum or structured scheduled payments over a predetermined period.   

Types of Policies providing Guaranteed Maturity Sum Assured

Policy Options

Endowment Plans

Endowment Plans blend insurance protection with savings. You can view them as systematic Savings Plans that also provide life coverage benefits, creating a financial cushion for your family. These plans are perfect for individuals looking for predictable Life Insurance maturity benefits. While numerous Endowment Plans provide guaranteed maturity sum assured, our Shriram New Shri Life Plan(UIN: 128N047V03) provides unmatched benefits. It lets you earn a higher sum assured, even with lower premiums. Policyholders also receive tax benefits in insurance, reversionary bonuses, terminal bonuses, multiple policy tenures, etc.   

Money-Back Plans

Money-Back Plans remain a popular investment choice for many because they provide periodic payouts at regular intervals throughout the policy term. Unlike Traditional Life Insurance Policy, Money-Back Plans don’t release benefits only on maturity. People with intermediate financial commitments, such as paying a child’s school fees, maintaining daily household expenses, etc., can benefit immensely from such policies. These plans combine the best features of protection and Investment Plans, and provide a guaranteed maturity sum assured. 

Assured Income Plans

Anyone prioritizing long-term financial protection must consider including an Assured Income Plan in their portfolio. These plans are designed to provide fixed income after a particular period or on maturity. While you may invest in Assured Income Policies to support your major mid-term life goals, these plans are also perfect for creating a steady, predictable income source for your golden years. 

It is one of the best Retirement Plans you can have in your portfolio, featuring a guaranteed maturity sum assured. Anyone exploring the best investment options to create an additional income source must check out the Shriram Life Assured Income Plan (UIN: 128N053V05). This plan provides assured income, flexible terms, life insurance coverage, multiple premium payment options, etc., 

Child Plans

Child Plans are designed to secure children’s future, especially when one of their parents (policyholder) passes away. The policy’s guaranteed maturity sum assured ensures that children effortlessly finish their education and accomplish major life events without experiencing any financial scarcity. Consider exploring the Shriram Life New Shri Vidya Plan (UIN: 128N051V03) to secure your child’s future.

This policy provides guaranteed money-back benefits in the policy’s last four years. Premium rebates for higher coverage, systematic savings creation, additional bonuses, and death benefits are notable highlights of this plan, making it desirable for most parents.   

Factors Affecting Guaranteed Maturity Sum Assured

Policy Terms and Conditions

Policy terms and conditions significantly impact the guaranteed maturity sum assured in several ways. For instance, longer policy terms usually provide higher return multipliers because the insurer benefits from the extended investment periods. Some policies also give guaranteed additions and bonuses, enhancing the guaranteed maturity sum assured amount. 

Your rider selection can also influence the base guaranteed sum assured, as can the policy’s surrender provisions and loan facilities. Since some individuals may find the policy’s terms and conditions challenging to comprehend, we recommend consulting a professional for personalized guidance and support.   

Premium Payment Options

Premium payment options, such as payment frequency and structure, directly influence the guaranteed maturity sum assured in assured income plans. People choosing annual premium payments over monthly or quarterly options can expect higher guaranteed maturity sum assured because insurers incur lower administrative costs in such cases. Additionally, limited premium payment options, like single premium policies, provide comparatively lower sum assured but give income certainty. 

Benefits of Guaranteed Maturity Sum Assured

Financial Security 

Financial planning is gaining popularity because everyone wants financial protection at varying life stages. One of the best ways to achieve this is by investing in secure and low-risk investment options, such as Assured Income Plans with guaranteed maturity sum assured. Since they provide predictable, stable, and secure returns, policyholders can effortlessly maintain their desired lifestyle and fulfil all financial obligations without stress or worry. The guaranteed maturity amount also eliminates financial uncertainty, enabling individuals to enjoy their life. 

Tax Benefits and Savings

Investing in a Life Insurance Policy with a guaranteed maturity sum assured can help policyholders enjoy tax benefits in insurance u/s 80C and 10(10D). You can claim premium payments as a deduction u/s 80C to reduce your taxable income and tax liability. Claims cannot exceed INR 1,50,000 in one financial year. Maturity proceeds from some policies can be tax-exempt u/s 10(10D) if certain conditions are fulfilled, helping you earn tax-free income. 

Choosing the Right Policy

Selecting the perfect Life Insurance Policy requires careful evaluation of numerous factors. We encourage individuals to start their policy search only after finalizing their financial goals. This one step can help you shortlist the right policies. You should compare multiple policies against their premium payment options, coverage, flexibility, terms and conditions, and extra benefits like bonuses, available riders, etc. 

After evaluating the shortlisted policies, you can pick the ones that effortlessly align with your financial goals. If it looks overwhelming and confusing, consider consulting an experienced financial professional to understand how a particular policy will fit into your portfolio.   

Conclusion

Having a policy with guaranteed maturity sum assured can secure your financial future by providing a predictable amount on policy maturity. This economic certainty and security can help you plan your expenses accordingly, enabling you to live a fulfilled life. If you’re ready to experience the comfort and peace of mind it provides, consider investing in appropriate assured income plans at Shriram Life Insurance. 

We’re one of India’s leading insurance providers with a wide range of Savings, Child, Retirement, Investment, and Protection Plans. Every policy is designed to help policyholders achieve financial protection and reach varying financial goals, so explore the options today. You can also contact our team for guidance or clarity on specific products.