A Lifetime income plan is a plan within the endowment universe that provides policy owner with a lifetime income while having part or all the principal intact during the pay-out period. In an annuity like structure, the plan also provides death benefit should the life assured passed on during the policy term.

You should consider if you prefer a stream of income that can last you for life in a way where your principal and income stream are partially or fully guaranteed

Most Lifetime Income plans provide principal and interest guaranteed after a certain years if the as shown on the benefit illustration, there are some with partial principal guaranteed.

Usually there will be a portion of the income that is guaranteed by the insurer.

Yes, you may reinvest the income pay out if you don’t need it at a prevailing bonus interest rate declared by the insurer each year.

Yes. However, you might suffer a loss of principal if the termination comes early on during the contract.

It depends, financing your plan expose you to two major risks. Interest rate risks and risks of losing your principal. The interest rates are usually variable and may cost more than the pay out from the plan during a high interest rate environment. Certain product does not guarantee your principal for life or many years into the plan, hence if you were to surrender the plan to repay the financing company you may still lose money.

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