There are many types of insurance policies available in today’s market. ING Life Insurance recently announced that they will be offering a Guaranteed Income Plan. This provides a number of benefits to the insured.
The CFO of ING Life Insurance explains that this new plan allows the customer to make premium payments for 50 percent of the policy term and then receive tax free income for the remaining 50 percent of the term.
While this form of life insurance is going to meet the needs of some, not everyone has the ability to continue making term payments. Additionally, some people are currently locked into payment plans that don’t offer these benefits. This is why it can be advantageous to convert life insurance. What this does is offers a person the ability to be paid a premium for their life insurance policy.
Once a life insurance policy is converted, one can decide whether it’s best to live off of the current retirement money that is coming in or to explore another insurance policy – one that has better benefits.
Particularly with a term policy, most people never see the benefit. They simply pay on the policy and then the policy expires because the term has expired. The new ING Life Insurance plan prevents this from happening. If a person were to select a 20 year term, they would make payments for only 10 of the years. The remaining 10 years would provide tax-free income. The amount to be paid and the amount to be earned would be based upon what a person can afford and what kind of income payout is desired.
Receiving a guaranteed tax-free income on a regular basis through the remaining policy term is a significant benefit. It is a benefit that very few insurance companies currently offer. The CFO of the company also went on to explain that at the end of the term, a customer could look forward to a lump sum payout that is tax-free, should a person outlive their term.
The guaranteed income payout is calculated at the rate of 11 to 13 percent, per annum. There is a guaranteed maturity benefit, tax savings, and life cover for the full policy term, guaranteed. This ensures that a person is spending their money wisely on life insurance because they have the coverage they need and can look forward to income halfway through the term.
Some other life insurance policies, such as whole and universal life, offer benefits in terms of income as well. The problem with these, however, is that it’s not a guaranteed set amount. They are usually based upon interest rates, which can fluctuate dramatically. As a result, people cannot rely on receiving income from their insurance policies, despite what promises may be made at the time of purchasing a policy. This is another reason that leads to people converting policies as they get older.
ING Life Insurance is based in Bangalore, India and is owned 100 percent by Exide Industries. They offer a number of insurance products throughout the world, including in the United States. Their newest product, the guaranteed income insurance plan, is receiving a significant amount of interest.
For those who are unable to find a product similar in nature to the guaranteed income insurance plan or who is not receiving the benefits of life insurance that they had hoped to, there is always the possibility of settling a life insurance policy in order to receive an immediate cash benefit. This is generally available to those who are over sixty years of age.