In a guaranteed income plan, you pay a fixed annual premium for the entire duration for which you have the plan. After the policy reaches maturity, you get that money back as a type of regular monthly income for a duration that you choose beforehand. The duration for which you keep making the annual payments and getting the monthly payouts thereafter can be both decided by you as per your current and future needs.
Though the word ‘guaranteed’ in the term assures you about the security of the plan, it is not the sole reason why you should consider it. So, here’s pointing out a couple of other reasons.More Info About Dumbbells
A way to substitute the primary retirement income
When you retire, there is a drastic drop in what you earn on a monthly basis. It is difficult because you have been used to a certain lifestyle in all these years when you have been earning a particular amount each month. The payout that you get from your GIP comes in handy in this situation. It helps in substituting your retirement income and meeting the day-to-day needs. You will not have to worry about adjusting your living standards right away.visit here for more info about WPC2026
A tax-free way to earn monthly income
One of the best things about GIP is that you get to earn a tax-free monthly income for a predefined period once you are done paying the premiums. Under the Income Tax Act, 1961, your earnings under the GIP are tax exempted. So, you get a tax-free retirement income for a duration that you can decide.
Ability to customize the plan as per need
You can customize the plan and the payout in more ways than one to meet your needs. In most cases, you are allowed to choose the term and mode of premium payment. You can also decide on the income payout period. In many cases, you are allowed to defer your payouts by a specific number of years. In other words, you can customize the plan to meet your financial needs exactly.See more info from here Second Hand Mobile Phone
The death benefit component of the plan
You would not want your family to have financial worries in your absence, and a GIP ensures that with death benefits. As per the provisions of the plan, in case of the policyholder’s demise during the payout tenure, the person listed under the ‘nominee’ can get death benefits as a steady income for a certain number of years or a lump-sum amount.
The riders add to the benefits of the plan
This plan allows you to add the riders that you deem fit for your needs. Adding riders is advisable because it gets you added coverage and safety in case of serious illness, loss of income, accidents, and so on. With the riders, you can increase the financial protection that your GIP already offers.
The varied benefits of a GIP help you retire comfortably, without financial worries keeping you awake. So, start assessing your present investment budget and possible future financial needs right away.