Everything about a Guaranteed Income Plan you should know

What is a Guaranteed Income Plan?

How Does a Guaranteed Income Plan Work?

Features and Benefits of a Guaranteed Income Plan

Riders Available with Guaranteed Income Plan

Factors to Consider Before Buying a Guaranteed Income Plan

FAQs About Guaranteed Income Plan

What Happens in Case I am Unable to Pay my Premiums for the Policy?


In case of premium discontinuance, after the policy has acquired a surrender value, which is after 2 years of premium paid in case of regular pay, the policy continues as a ‘paid up’ policy with reduced benefits.

However, if the premium payment is discontinued even before the policy has acquired a surrender value, no benefits will be paid, and the policy will lapse.

This paid-up period is mostly 1 year in case of single premium plans.

Can I Take a Loan Against my Guaranteed Income Policy?

Yes. Most guaranteed income plans provide a loan option of up to 80% of surrender value to help you in case of financial emergencies.

Who Should Buy a Guaranteed Income Plan?


A guaranteed income plan is ideal for you if:

  • You want to create an additional stream of fixed income.
  • You want some guaranteed returns as opposed to the market volatile investments.
  • You are looking for tax benefits on your investment.
  • You have some long-term goals planned that require regular stream of income like post-retirement years.