Life uncertainties can be easily handled with proper and efficient planning. Life insurance savings plans are the best way to secure the future financially. This is what people generally believe. However, there are many alternatives available in the market nowadays. There are saving insurance plans and monthly income plans, which are offered by several insurance companies.
With an insurance savings plan, the insurance company provides a guaranteed regular monthly income once the premiums are paid. But, at the same time, it is essential to utilise these MIPs appropriately.
Thus, we have listed five ways in which one can use the best monthly income plan in India for future financial safety. Here all of them are mentioned in detail.
5 Ways to Use Your Monthly Income Plan for Financial Security
Here are the ways to use your monthly income plan for financial safety:
- Retirement planning
It is essential to plan for retirement from an early age. With early planning for retirement, one can opt for the savings policy. An insurance savings plan will set and guarantee the regular monthly payment for the retirement age. With a steady monthly income, you don’t need to worry about regular expenditures.
- Use it as an emergency fund separate from your savings account
An emergency savings account is essential to building a reserve fund. Regarding financial planning, most people fail to consider unexpected events like health risks, injuries and unemployment. Keeping cash on hand in an emergency is always a good idea since you might get medical insurance tailored to specific health concerns.
For a separate emergency fund, you can opt for any insurance and saving plans. For example, you can opt for the Smart Value Income Plan (SVIP) offered under Tata AIA Life Insurance Plans. With such saving plans, you could effectively meet unexpected expenses and don’t have to get loans for them.
- Reduce the current debts as much as you can
A monthly Income Plan helps the policyholders in handling unexpected expenses. However, it is equally important to take care of the loans or debts, if any. Try to minimise the debts as much as possible when the financial stability is quite good otherwise, they will get piled up in the end. This is one way through which you can strategise your monthly income plan. You can choose saving policy returns to pay back the loan as well.
- Financial support in case of illness or accidental injury
Once the premium for the saving insurance plan is completely paid, you can also choose to start getting the monthly payouts. In case of any accidental damage or illness, it will help you to handle the regular expenditures as well. You won’t be burdened by anything because the payouts will cover you.
- Expect the unexpected
Once you have the guaranteed monthly income plan, you can handle unexpected expenses. This could include illness, injury, accident, hospital expenditure, children’s school fees, etc. Hence, it is crucial to have an insurance policy in hand. Thus, it will provide you with financial coverage for all kinds of unexpected expenses.
The ability to maintain financial flexibility over the long term is not difficult. Creating simple but strategic plans and habits is the best way to ensure financial security. It is possible to live a stress-free life if you implement these suggestions into your financial management and choose the regular guaranteed monthly income plan. It will help you deal with unexpected expenditures that may arise in the future.