When you sow seeds, you don’t expect the tree to grow the next minute, do you? This is the case with investments. You will need to investment small amounts at periodic intervals to get good savings. Guaranteed Income Plan is the seed that will give you good wealth accumulation at the end of the tenure selected.

How it Works?

Let’s take a look at how GIP works with the help of an example

• Let’s say ABC is a young man, aged 29, single and working. His annual income is 3lakhs per annum
• You have chosen a plan where you need to pay 25k per annum for the next 30 years. The total amount you would be paying out as premium for 30 years would be 7.5 lakhs
• At the end of the 30 years, you would get lumpsum amount that is approximately 3 times the amount you have invested. For sake of this example we consider an amount of 21 lakhs
• Apart from this you also get death and accident benefits with this cover

This example shows how guaranteed income plan generates approximately 3 times the amount you have invested in the said period. This amount takes into consideration following factors

• Salary you earned during the period of investment
• Taxes you pay
• Inflation. Normally 5% growth in inflation is considered by most lifetime insurance planners

Selecting GIP

Smart investors’ forum advices and suggests guaranteed income plan to its clientele. Besides your general profile we will need details on age, salary, type of job, and financial goals to help you choose the right plan.

The risk is relatively lower, and the guarantee of an income at the end of the tenure is what seems attractive about this plan.If you are planning to choose GIP, contact our expert panel for suggestions.