Traditional Plans in India

In today’s day and age, maintaining financial stability has become quite difficult for most of the individuals. ?Understanding the requirement of financial stability in an individual’s life, the insurance companies have come up with guaranteed income plans. The guaranteed income plans are specifically designed to cater to the requirements of the risk-averse investors and offers them the benefit of life insurance along with maturity benefits and regular guaranteed payouts. The guaranteed income plan offers financial security by providing regular income at a pre-defined percentage (selected by insured and insurer) of Sum Assured. The USP of the plan is that one can receive the income yearly, half-yearly, quarterly or monthly. This innovative insurance product is a traditional plan that comes with bonus facility, where the insurance holders are not required to worry about the ups and downs of market; rather they get to enjoy the maximized returns.

Best Traditional Plans in India

Plan Name Plan Type Entry Age Age Policy Term
HDFC Life Click2Protect? Plus Term Plan 18 - 65 years 28 - 75 years 10 - 40 years
ICICI Prudential Cash Advantage Money Back Plan 0 - 60 years 18 - 80 years 15 - 20 years
HDFC Life Sampoorn Samriddhi Plus Plan Endowment Plan 30 - 60 years 18 - 75 years 15 - 40 years
SBI Life Smart Money Back Gold Plan Money Back Plan 4 - 25 years 26 - 70 years 12 - 25 years
SBI Life - Saral Shield Term Plan 18 - 60 years 65years 5 - 30 years
Aviva i-Life Plan Term Plan 18 - 55 years 70 years 10 - 35 years
HDFC Life Sanchay Plan Endowment Plan 30 days - 45 Years 18 - 70 years 15 - 25 years
Canara HSBC OBC Smart Stage MoneyBack Plan Money Back Plan 8 - 55 years 70 years 15 years
Max Life Guaranteed Monthly Income Plan Money Back Plan 25 - 65 years 71 years 6 - 11 years
Aegon Life Term Plan Term Plan 20 - 65 years 75 years 10 - 75 years minus age at entry


Guaranteed Income Plans are designed for salaried people who fall in the age bracket of 18-60 years and policy term for them extends from 10 years to 30 years.


  • It is a variant of life Insurance plan that offers regular income for a specified term varying from 10-30 years.
  • Offers vested reversionary bonus along with terminal bonus, if any, at the time of maturity.
  • Provides death benefits as well as maturity benefits.
  • Provides the benefit of tax exemption.
  • Policy term varies from 10-30 years.

Benefits of Guaranteed Income Plans

Maturity Benefit

At the time of maturity, the life insured receives the simple reversionary bonus along with terminal bonus, if any. In case, the payout period is approximately 15 years, then the insured is paid the regular amount which is pre-defined percentage of sum assured.

Death benefit

In case of unfortunate event of death of the insured during premium paying term, the nominee of the policy receives the basic sum assured amount along with the reversionary bonuses and terminal bonus, if any. And, the payouts are carried for the next 15 years or as mentioned in the policy. In case of demise of the insured after premium paying term or during the payout period, the nominee receives the sum assured amount along with the other benefits.

Income Tax Benefits

Tax deduction under Section 80(C) is available every year and tax exemption under Section 10(10D) is available on the maturity proceeds, subjected to the terms and conditions.

Additional Rider

The traditional plan comes with an inbuilt rider i.e. Accidental Death Benefit Rider.

There are some traditional insurance plans, which offer fully guaranteed returns, whereas the other plans offer partially guaranteed returns. The products available at Policybazaar are fully guaranteed in nature. In the below mentioned table we have shown a comparison that indicates the rate of return for few traditional products, which is computed at a sample modal point. In this table different plans have different pay terms and policy terms and can be suitable for different needs. Thus, this table is only for the purpose of illustration.

Comparison of Returns in Traditional Plans across India

Insurer Plan Name Rate of Return Guarantee
LIC New Jeevan Anand 3.56% Partially Guaranteed
LIC Jeevan Labh 5.15% Partially Guaranteed
Bajaj Goal Suraksha 6.29% Fully Guaranteed
HDFC Life Sanchay Plus LTI 5.96% Fully Guaranteed
HDFC Life Sanchay Plus Guaranteed Income 5.61% Fully Guaranteed
Max Life Monthly Income Advantage Plan 5.82% Partially Guaranteed
HDFC Life Sanchay 5.71% Fully Guaranteed
ICICI Assured Savings Insurance Plan 5.53% Fully Guaranteed

The above mentioned rate of returns is based on the below mentioned assumptions and the date for Internal Rate of Return (IRR) is taken as 15th August:

Plan Name Age Annual Premium Equivalent (APE) Premium Paying Term (PPT) Policy Term
New Jeevan Anand 35 years Rs.1 Lakh 25 years 25 years
Jeevan Labh 35 years Rs.1. 56 Lakh 16 years 25 years
Goal Suraksha 35 years Rs.1 Lakh 5 years 15 years
Sanchay Plus LTI 35 years Rs.1 lakh 10 years 11 years
Sanchay Plus GI 35 years Rs.1 Lakh 10 years 11 years
Max Life MIAP 35 years Rs.1 Lakh 15 years 25 years
HDFC Life Sanchay 35 years Rs.1 Lakh 5 years 15 years
ICICI ASIP 35 years Rs. 1 Lakh 5 years 15 years


Here is how the rate of return of Sanchay Plus product have reduced over last few months due to declining interest rate regime in India

Date Sanchay Plus Guaranteed Income
? Premium Payment Term:10 years Premium Payment Term:12 years
Aug' 2019 200% of Annualised Premium 225% of Annualised Premium
Dec'2019 195% of Annualised Premium 217% of Annualised Premium
Written By: PolicyBazaar - Updated: 09 January 2020
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