Protect your family's life with guaranteed income savings life insurance policy


Do you dream of having a life where you are not worried about financial conditions? You are not alone in the race chasing your dreams and making your own capacity for savings. But does that really help in the long run? The amount of money you save can be too much for you, but that will not be enough.

You can save money in abundance only if you start investing a bit in a guaranteed income plan. These are available in insurance policies that provide you with a life cover for a definite period and offer you monetary benefits.

If you wish to live a less hassled life after retirement or after a few years, you must have accumulated savings. This bulk of money can be of great help, especially when you retire and the family necessities are haunting you.

Let us now explore what is a savings plan and why one must have it?

What is a savings life insurance plan?


A savings life insurance plan is a financial product that makes savings a discipline of your life. After investing over some time, you are eligible to get steady returns for your financial goals in life. These policies are also helpful for your dependent family members in case of your untimely demise.

Saving is incredibly a vital activity, just like eating your meals, exercising, sleeping, and other life activities. However, if you fail to save or make plans, be assured that you will be leaving your family to face the vagaries of life. For sure, you would not want this to happen.

This is why putting the money in suitable investment tools is crucial until it gives you a security net. Hence, you must consider buying a savings insurance plan as it fits the need to fulfil security and savings simultaneously. Though choosing the plan depends on your risk absorption capacity, not having any because of low paying capacity is a failure.

Savings plans in India are for wealth creation that pays you back when you need plenty of money. The contention here is there is a wide variety of products available, and hence it is difficult to pick one. Moreover, not all plans can meet your benchmarks of returns, death benefits, coverage, and other factors.
Amongst different varieties of products, a guaranteed income plan ensures you enough security after retirement. In addition, most companies provide the option to customize the product.

Let us explore what are guaranteed income plans in detail.

Important things to consider when buying a savings insurance plan


When it is about money, you cannot just throw it away.

Savings is not just a matter of choice but is the demand of time. Keeping a sum of money aside every month is not going to help. If this is clear, you should invest in the right savings plan. And before you move to select a savings plan, these are things you must consider.
  • Match the plan returns with your financial goals: Keep your long-term and short-term goals clear in mind. Once you are clear with the goals, you exactly know how much you should put aside. You can decide the term in 1 year, 3 years, 5 years, and 10 years.

  • Decide how much tax you have to save: It is not a new story that life insurance policies help you save taxes. See what the exact amount of investment you want to make and yet prevent tax deductions is. The premium payment option could vary from single to monthly to annual.

  • Try to balance the investment and returns: You cannot go over the board when trying to make an investment. It has to be planned and as per your risk absorption capacity.

  • Explore, Research and Buy: Don't haste when it comes to investing. It is your money that you will be putting at stake. Compare between various life insurance plans and then decide what to do.
    Keep continual monitoring of your portfolio: After investing in the savings plan, you must keep checking the returns you receive.

Savings is an art of calculation and speculation. You can compute the returns and consider which you can buy a savings plan. Well, investments are always made to get guaranteed returns of income. So let us explore more options about it.

What is a guaranteed income plan?


"Guaranteed" indicates an assurance of receiving something in return. These plans keep your returns free from market influences. This implies that:
  • A guaranteed income plan is a non-participating product that provides you with monthly income. It applies only if you pay premium instalments yearly for the entire term of the policy.

  • After the completion of the premium payment, you will receive the benefits as a regular salary. It is crucial, especially for those who no longer have jobs but have fixed expenses to make.

  • The years up to which you will receive the regular pay depends on the type of plan you choose. This defines a policy term that includes both the duration for which you have to pay the premium and the period for which you will receive the payout.
The number of years for which you have to pay the premium may look daunting to you. However, keeping your family protected is your prime motive for which you will take pains to pay the premium amount.

By now, you must have understood what purpose a guaranteed income plan solves. Now further, you can see how Aditya Birla Sun Life Insurance's (ABSLI's) Guaranteed Income Plan resolves your concern for a guaranteed income.

ABSLI Secure Plus Plan: Guaranteed Income Plan from Aditya Birla Sun Life Insurance


Our company offers a simple to understand and affordable plan that you can think of to invest in. The motive of the company is to help you protect your dreams with an assured income. Here is how the plan works:
  • The ABSLI Secure Plus Plan is about preparing a backup income plan which is your saviour when you are left with fewer options to earn. This is particularly the time when you retire from your job.
  • This savings and guarantee plan allows the policyholders to choose the amount they wish to pay every year.
  • Apart from the premium paying options, the plan allows the policyholders to pick the income benefits. There is plenty of flexibility where you can either select either of these:
    • Option A: Receive income that increases from 100% to 600% of annualized premium at the end of each year for 6 years.
    • Option B: Little tweaked from the first option, the second one gives its buyers a chance to get upto 215% of the annualized premium for 8, 10 or 12 years.

  • Under the guaranteed income plan from ABSLI, the policyholder also has a death benefit, which is inbuilt.

  • The buyers of the income plan can extend the coverage by opting in for different riders. These are the add-on covers that you choose to expand the range under the existing insurance policy. It does not come free, and the policyholders have to pay an extra premium for the rider cover. Some of the riders that you can think to include under the Secure Plus Plan are:
    • ABSLI Critical Illness Rider: Critical Illnesses are more common than it was earlier. Considering the rising cases, buying the critical illness add-on cover will be a wise option. Under the plan, if you are diagnosed with any of the 4 specified acute illnesses, you will get a lump sum amount on the diagnosis.

    • ABSLI Hospital Care Rider: This rider cover gives you a daily cash benefit, additional ICU benefit, and lump sum recuperating benefit after hospitalization.

    • ABSLI Surgical Care Rider: When you grow old, surgeries are common, but your earnings reduce. This is why buying this rider expands your risk absorption capacity. The policyholder gets a lump sum benefit to cover surgical expenses.

    • Waiver of Premium: One fact of life is that it is entirely uncertain and can leave you bankrupt in case of accidents and permanently disabled. Another unavoidable fact is when you grow old, your earnings reduce, leaving you unable to bear the expenses. Keeping these two facts in mind, you can choose the waiver of premium rider where all the future premiums can be waived off if you suffer from 4 specified major illnesses, permanent disability, or death.

Ways in which you can protect you and your family with a guaranteed income savings life insurance plan


If you buy ABSLI Secure Plus Plan, these are the benefits you will get:
  • Income Benefit: As soon as you complete the policy term, you will receive guaranteed payouts at the end of each year. The payouts are intimated to you at the time of taking the policy. There are two types of options under this policy which are discussed above. Choose the one that suits your requirements.

  • Maturity Benefit: If you survive the policy term, you will receive a lump sum amount which is the commuted value.

  • Death Benefit: The death benefit is given to your nominee. If you die a natural death during the policy term, a set amount indicated at the beginning of the policy will be paid to your nominee. In the case of accidental death, the nominee will receive an unexpected death benefit along with the death benefit amount.

  • Reduced Paid-Up Basis: Imagine that you cannot pay the premium under ABSLI Secure Plus Plan after paying it continuously for 2 years; your policy will continue on a Reduced Paid-up Basis. Whenever you cannot pay the premium, the insurance company allows you a grace period of 30 days. Grace Period is the time when all the coverage under the policy will continue.

If you cannot pay the premium for an entire two years, the policy will lapse.

How does ABSLI Secure Plus Plan Work?


Ishita, a 36 years old female chose option B under ABSLI secure plus plan for a Sum Assured of Rs.15 lac. She wanted a guaranteed income with the plan. She found out the best combination for herself. Ishita decided to buy a savings plan with a policy term of 10 years and a premium paying term of 10 years. Ishita was working with an MNC at a good salary package. She decided to pay the premium annually. Let us now see how the plan works under Option A.


Policy Year EndAnnualized PremiumPremium PaidGuaranteed Income
Death BenefitIncome Benefit
11000001000001500000
21000002000001500000
31000003000001500000
41000004000001500000
51000005000001500000215000
61000006000001500000
71000007000001500000
81000008000001500000
91000009000001500000
1010000010000001500000215000


You now know how the plan will pay you. After discussing with Ishita one of her senior colleagues Mansi thought of saving the money. Mansi realized that she was late but then she wanted to start as soon as possible. Ishita explained the key features of the guaranteed income plan to her:
  • The plan provides flexibility to choose from two-income options.

  • ABSLI Guaranteed Income Plan gives the flexibility to choose premium amounts also.

  • The plan comes with an inbuilt accidental death benefit.

  • Apart from savings and death benefits, the Secure Plus Plan offers income tax benefits under Section 80C, 80D, and Section 10(10D) of the Income Tax, 1961.

After detailing Mansi about the prime benefits, Ishita asked Mansi to check whether she was eligible to take the policy or not.

Let us now see what is the eligibility criteria to buy the ABSLI Secure Plus Plan.

Eligibility Criteria for ABSLI Secure Plus Plan


Entry Age4 years to 50 years
Maturity Age64 years maximum
Minimum PremiumRs.50,000 per annum for annual mode.
Rs.36,000 for monthly mode.
Sum AssuredIt depends on the entry age as well as the premium amount you want to pay.
Minimum Sum AssuredRs.5,22,000
Premium ModeOnly Monthly or Yearly.

Guaranteed Income Savings Plan is a mind pleasing product for those who want life cover for their dependents and yet put money in savings without risks. For these people, guaranteed income plays a vital role in their life.

Conclusion


A guaranteed income plan assures you of high relevance especially when you retire. It helps you manage the significant expenses of the family. Investment and savings is the game of every household. The guaranteed income plans are non-participating traditional insurance plans that help you manage untimely and unexpected expenses. If you are unsure of which method you should choose for savings, you must consult a representative.

More Information on Guaranteed Income Savings Life Insurance Policy


Q. What is the guaranteed maturity benefit I stand to gain under the ABSLI Secure Plus Plan?
Answer: Under the guaranteed maturity benefit of ABSLI secure plus plan, you get help in these formats:
Option A: 100% to 600% of annualized premium up to 6 years at the end of each year.
Option B: 215% of annualized premium at the end of each year for 8 years, 10 years, or 12 years.

Q. Can I change how the maturity benefits are paid out under the ABSLI SecurePlus Plan?
Answer: Yes, you can choose the commuted value if you survive the entire term of the policy. The commuted value is the total lump sum benefit you choose to receive at the end of the policy.

Q. What happens in case of the life assured's untimely demise during the ABSLI SecurePlus Plan policy term?
Answer: If the policyholder dies untimely, the nominee will get the death benefit. They will receive the total sum assured chosen under the policy. But the condition remains that the premium is paid for the complete policy term. If that has not happened, then the nominee is eligible for reduced benefits when the premium was paid continuously for a minimum of two years. If the policyholder does not reimburse the premium for two years, the policy will lapse, and the nominee will not receive any benefit.

Q. Are there any riders available in the ABSLI Secure Plus Plan policy?
Answer: Yes, there are a total of 4 policy riders available under the ABSLI Secure Plus Plan. These are:
ABSLI Critical Illness Rider (UIN: 109B019V03)
ABSLI Surgical Care Rider (UIN: 109B015V03)
ABSLI Hospital Care Rider (UIN: 109B016V03)
ABSLI Waiver of Premium Rider (UIN: 109B017V03)



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