All of us strive to save money throughout our lives so as to have financial stability once we retire. To attain this goal, we consider different savings plans to park our savings in a beneficial avenue. However, money management can give rise to various challenging scenarios. For instance, your financial commitments towards your family may be on the higher side, or there could be a lack of financial planning to deal with uncertain life events.
Therefore, plans with regular income payouts have become popular. People are increasingly preferring a regular income payout plan rather than one that offers a lump sum benefit. As a result, insurance providers have introduced comprehensive life insurance policies that offer savings and regular income benefits along with a life cover!
A savings insurance plan is a comprehensive life insurance policy that provides a life cover and guaranteed 1 returns on maturity. Here are the basic features of the product:
Let us discuss in detail how a regular income plan works and how you can draw the best benefits from it.
A regular income plan has three important aspects, namely the premium, the policy term, and regular income. These aspects are decided during the policy's inception. However, it is subject to revisions during the policy renewal process. Let us discuss these individual aspects in a little detail:
On the other hand, if the regular income is planned to pay for your child's school or college fees, you can derive an estimate of the amount required in advance. You can avail of the regular income either monthly or annually. Furthermore, you can define the income period for the regular income, for instance, 20 to 50 years after the policy term ends.
You are likely to be able to afford more amount for investment at a younger age as your family commitments may be lower than later in life. If your policy term is longer, you will also benefit from opting for a longer income period for the regular income plan.
You can select the frequency of premium payment based on your income and expenses. This frequency can be a single payment, or monthly, quarterly, semi-annual, or annual payments.
Therefore, based on the regular income required and the policy term, you can estimate the premium amount you have to pay. Our online calculator can help you check and plan for your premium payments. This way, you can customise the regular income plan to work as per your financial requirements and capacity. You will start receiving regular income when the plan matures, provided you have made the premium payments without fail.
You can customise your regular income plan to suit your financial goals. For instance, with the TATA AIA savings plans, you can opt for regular income with an in-built critical illness benefit. With such a plan, the premium will get waived off when you are diagnosed with a critical illness, and you shall receive a lump sum amount as financial assistance. Despite no further premium payments, the regular income and the insurance for life cover will remain intact.
A savings insurance policy is one of the best ways to accumulate a substantial corpus in the long term and pursue your financial goals. A regular income plan can be a good investment for people who are:
Uncertain events in your life can have a deep impact on your financial status. Therefore, it is important to be prepared to accept the challenges in the best possible manner. If you feel a regular income is the way to sustain your life, then go for it!
A regular income plan in a life insurance policy works on the basis of your required regular income and the policy term. You must, thus, analyse your financial goals and decide the type of plan and payout options you want to opt for. As the returns under a regular income plan are guaranteed 1 , it is considered one of the apt plans offering savings as well as insurance.
L&C/Advt/2023/Feb/0376