Planning for Retirement with Peace of Mind: The Benefits of Guaranteed Lifetime Income
An individual passes through various stages of life, and one such crucial state is that of retirement. This stage puts forward multiple challenges, one of which is the dependence on one’s savings to meet daily expenses as well as any unforeseen events. Healthcare costs are constantly rising, and it becomes important for an individual to have a steady and reliable income source. At this juncture, having Guaranteed Lifetime Income Insurance helps retirees to sustain themselves. Let us further explore this product.
How Guaranteed Lifetime Income Insurance Works
Guaranteed Lifetime Income Insurance is also popularly known as an annuity plan. It offers retirees a stable and reliable source of income throughout their retirement years. An annuity involves an agreement between an individual and an insurance company. By making a lump-sum payment or a chain of premium payments, the insurance company ensures to pay the individual a consistent income for the duration of his/her life.
The Key Benefits of Guaranteed Lifetime Income Insurance
The main benefits offered by Guaranteed Lifetime Income Insurance are:
- Ensuring Financial Security in Retirement
Guaranteed Lifetime Income Insurance provides a consistent income to retirees that will help them take care of their expenses for the rest of their lives. This stable income gives them peace of mind and a sense of financial security. The individual need not worry about market fluctuations or any other changes, as their expenses will be covered with the help of this income.
- Flexibility and Customisation Options in Guaranteed Lifetime Income Plans
There are two types of annuities – immediate and deferred. Retirees can opt for either of these two based on their requirements. Immediate annuities offer income immediately after the first premium is paid. Deferred annuities enable the individual to opt for an income at a much later date.
Furthermore, annuities can be customised to offer income for either one person or make a provision for a beneficiary as well. Retirees can make use of this customisation to meet their lifestyle requirements and goals.
Comparing Guaranteed Lifetime Income Insurance with Other Retirement Options
In India, individuals planning their retirement have multiple options available that offer financial security. Two common options are the Employees' Provident Fund (EPF) and the Public Provident Fund (PPF). Let’s compare these options:
|
Guaranteed Lifetime Income Insurance |
PPF (Public Provident Fund) |
EPF (Employee Provident Fund) |
|
|
Type of Product |
Insurance product |
Government-backed long-term savings scheme |
Compulsory savings scheme for salaried employees |
|
Purpose |
Offers steady income during retirement years |
Helps build long-term savings |
Offers a retirement corpus for the employee |
|
Payout |
Flexible payout options |
Can be withdrawn only after the lock-in period |
EPF money cannot be withdrawn unless you are unemployed |
|
Additional Benefits |
Tax benefits under Section 80C, Life cover |
Tax benefits under Section 80C |
Tax benefits under Section 80C |
Federal Bank's Guaranteed Life Income Plan offers individuals the convenience of a one-time payment, and enjoy growth on their investments along with a life cover. Check out their Guaranteed Life Income Plan to know its features and benefits.
Assessing Retirement Goals and Suitability for Guaranteed Lifetime Income
Individuals must assess their future expenses, desired lifestyle, as well as risk appetite to understand if the guaranteed lifetime income insurance matches their retirement requirements. One can always consult and seek the advice of a financial expert to take a well-informed decision regarding their income stream for their life post-retirement.
Conclusion
As the retirement years come closer, individuals look out for financial options that offer financial security. Guaranteed lifetime income insurance is one such tool that ensures retirees can enjoy their retirement years without any stress and worry. Offering them a steady income stream, helps them embrace their retirement with confidence and peace of mind. Visit Federal Bank to learn more about their Guaranteed Life Income Plan.