Retire rich by unlocking the benefits of Assured income plan

Retirement is a wonderful life phase as it gives people the time to participate in activities they like and live how they want. However, it is only possible to enjoy retirement when you have enough savings to maintain your desired lifestyle. It is why most individuals start their retirement planning during their active work years, so they can retire gracefully and live a worry-free post-retirement life.

While people invest in different financial instruments and plans to achieve financial security after retirement, most prefer investing in guaranteed income plans for their predictability and low-risk profile. We discuss these plans in detail in this blog so people can make thoughtful investment choices and create a dependable source of post-retirement income.

What is Assured Income?

Assured or guaranteed income refers to a fixed, predictable amount of money that policyholders receive from insurers on policy maturity or during a pre-determined period. If you invest in Assured Income Plans like Shriram Life Assured Income Plan, (UIN: 128N053V05) you will receive a regular income option that can help you assist with monthly expenses during your retirement years. It is a non-linked and non-participating plan that provides combined features of retirement, child, and savings Life Insurance plans.

Most Assured Income Plans accumulate and invest your premiums in a diverse pool of low-risk instruments to earn stable, risk-free income. It is returned to policyholders through consistent, assured income during the pre-agreed period. Depending on your chosen payout frequency, you can receive the income as a lump sum or periodic payments.

Benefits of Assured Income for Retiree

Guaranteed Returns

Assured Income Plans are one of the best investment plans for retirees because they eliminate uncertainty about how much money they’ll receive during their retirement years. These plans provide fixed, guaranteed income so retirees can plan their expenses accordingly. It provides them with financial peace of mind, enabling them to lead a comfortable post-retirement life. You cannot receive this benefit by investing in risky instruments or plans, such as equities, mutual funds, SIPs, etc.

The returns from these investments are not guaranteed as they fluctuate based on market volatility. If you want to receive assured income during retirement, invest in plans like Shriram Life Premier Assured Benefit Plan (UIN: 128N094V04) and other savings plans featuring assured monthly payments and other settlement options.

Stable Income Stream

One of the biggest benefits of Assured Income Plans is consistent payouts. Retirees often look for fixed and stable post-retirement income so they can effortlessly handle day-to-day living expenses. Since income from these plans becomes an adequate replacement for lost income, retirees don’t face financial uncertainty and can budget their monthly expenses without stress.

If you want greater financial support during retirement, invest in Retirement Plans and Protection Plans that align with all your financial goals and complement your existing investments. You can also look for plans that provide guaranteed returns with Life Insurance coverage.

Low-Risk Investment

Assured income plans, like Shriram Life Assured Income Plan, (UIN: 128N053V05) are inherently low-risk by design. Since they are non-linked and non-participating, the returns of these plans aren’t impacted by economic downturns or market volatility. These plans continue accumulating stable returns while preserving the capital. This level of financial security is challenging to achieve with high-risk investments, such as stocks, SIPs, REITs, IPOs, etc.

If you want to enjoy higher returns during retirement, invest in a healthy blend of market-linked investment plans and non-linked non-participating insurance-based savings plans, depending on your risk tolerance. Working individuals with plenty of financial obligations can explore insurance plans with flexible terms and premiums for convenience.

Tax Benefits

One of the best ways of maximizing insurance benefits is by using it as an efficient tax-saving tool. Besides providing Life Insurance coverage and guaranteed income, Assured Income Plans also provide tax benefits. For instance, you can claim the premium payments as deductions u/s 80 C while filing income returns to lower your taxable income and tax liability. The deduction is capped at ₹1,50,000/annum.

Maturity proceeds are eligible for tax exemption u/s 10(10D), subject to particular terms and conditions. Proceeds received as death benefits are fully tax-exempt. If you have multiple investments as part of your long-term financial planning, we recommend consulting a qualified CA or professional tax advisor for personalized tax-saving guidance.

How to Choose the Right Assured Income Plan

Assess Your Financial Goal.

Effective retirement planning starts with thoughtfully assessing your financial goals. Before exploring investment plans for retirees, begin by evaluating your financial obligations and needs, both current and future periods. If your primary goal is to build dependable sources of stable income after retirement, decide how much money would you need to live a comfortable post-retirement life.

Factor in inflation and unexpected expenses while arriving at this amount and then look for relevant plans. If you already have Assured Income Plans in your portfolio and want to accumulate significant wealth for retirement, you can explore the Shriram Life Early Cash Plan (UIN:128N093V02). This non-linked participating plan can help you earn higher returns while maintaining life coverage and other benefits.

Compare Different Plans

No two investment plans for retirees are created equally, so you must look for plans that align with all your short-term and long-term financial goals. Once you’ve finalized your goals, shortlist at least three to four plans designed to achieve financial security and compare them against multiple parameters. You can evaluate each policy based on flexibility, payout frequency, premium payments, policy duration, available riders, terms and conditions, and other features. 

Consider Professional Advice

Retirement planning can sometimes be overwhelming and confusing, so it’s best to seek professional advice from qualified CAs or experienced financial planners. They’re more experienced and aware of different markets and financial instruments or plans, so they can help you secure retirement at a particular age. If you’re unsure how particular insurance plans fit into your long-term financial planning, consider consulting professionals for personalized guidance. It will help you make informed decisions and create reliable streams for post-retirement income.

Real-Life Examples and Success Stories

Mr. Manoj, aged 30, invested ₹50,000/annum in Shriram Life Assured Income Plan (UIN: 128N053V05) with a regular income option to enjoy consistent income during the benefit payout period. He chose a 15-year premium payment term and a 15-year policy term with an equal period of benefit payout period, i.e. 15 years. He outlived his policy term and started receiving ₹99,750/annum for the benefit payout period of 15 years, resulting in a total benefit earned of ₹14,96,250. He used a portion of this amount to fund existing obligations and reinvested the remaining to strengthen his retirement fund.

Mr. Suresh, aged 50, invested in Shriram Life Assured Income Plan (UIN: 128N053V05) with regular income options to create a stable income stream for his golden years. He invested ₹1,00,000/annum throughout the policy term of 12 years. He outlived his policy term and became eligible to receive a fixed, regular income that helped him manage his post-retirement living expenses easily.

Conclusion

Every individual desires to receive an adequate stable income after retirement to lead a worry-free and comfortable life. Investing in Assured Income Plans is one of the best, risk-free ways to transform this desire into reality. It is one of the most secure investment plans for retirees who want to receive adequate post-retirement income. You can explore such plans at Shriram Life Insurance along with other investment, retirement, savings, and protection plans designed to help you achieve your particular retirement financial goals.