After retirement, life can become harsh if we do not have financial security. Everyone wishes to have a fixed income plan after retirement that is not affected by the market and gives them peace of mind that is worth everything. There might be several savings plans, but somewhere or other, those fail to provide the security that one has while they are earning. A guaranteed income plan is created so that the person and their families remain secure even after retirement. In this blog, we are going to discuss how this income plan is better compared to traditional savings plans and how it acts as the best source of fixed income even after retirement.
Traditional Savings Plan
Money is kept safe
Investing in a traditional savings plan means that our money is kept safe without us having to worry about it. We can withdraw it at any point in time we want to, as per our needs and conveniences.
When we keep our money in the form of a traditional savings account, it becomes liquid, and we can withdraw it whenever the need arises. We do not have to fill out any forms or do any kind of formalities, and this counts as one of the major advantages of tradition.
When we invest money in a traditional savings plan, there are no limits. We can deposit as much money as we want annually; therefore, it’s quite user-friendly. If we ever fall short on cash, we can quit depositing the money for that particular time and continue doing it some later time.
Guaranteed Income Plan
A possible source of income
Having a regular source of income is more than enough to fulfill all your requirements and live a happy life with your family. A guaranteed income plan offers a regular source of income even after retirement. You can enjoy all the things you used to enjoy while having a permanent job with a permanent source of income, even after retirement.
Protection is guaranteed
With this income plan, your protection is guaranteed even after retirement. It also provides death benefits under which, if the policyholder dies within the tenure of the plan, the subsequent nominee holds the position to receive the benefit as a lump sum amount or as a ten-year income. Thus, this plan is reliable as it offers safety to its policyholders even after their demise.
Smooth payout options
The payout options for this plan are quite flexible. Policyholders can withdraw the money at any point in time if they want to. There might arise a case when the person requires a large sum of money for some emergency purpose. During that time, they can either withdraw the money as a lump sum after the maturity of the monthly plan, or they can also choose to get it as a monthly income. Thus, keeping in mind the needs of the person, the money can be taken out as and when the need arises.
Financial security has become one of our major goals and objectives, and we tend to strive hard to work for it. In a society like that of today, we want a secure and permanent financial plan that will meet all our plans, even after retirement. Therefore, choosing a fixed income plan rather than a traditional savings plan will help us a lot in the long run in securing our lives as well as our family’s.