There are many instruments available, including term insurance plans. This is the most important product that provides a safety net for your family. But is this enough? Perhaps not.
Investment in financial instruments such as Fixed Deposits (FDs), which can provide a monthly income to your family and cover all of their expenses, is necessary. These are some ways you can ensure your family has regular income.
Fixed Deposit Schemes by NBFCs
Fixed Deposits can offer high returns and safety while also guaranteeing the stability and security of your principal. Fixed Deposits from NBFCs can offer attractive FD interest rates and allow you to choose the frequency of interest payments that suits your financial needs.
For your FD investment, you can choose a flexible tenor of 12 to 60 month. This will impact your liquidity and help your family achieve a greater cash flow. You can make sure your family has enough money to cover their basic needs by investing in a FD with varying maturities and choosing monthly interest payments.
The FD calculator can be used to calculate your return and to invest in the best way to meet all your financial needs.
Term Plan with Staggered Payouts
Instead of receiving a lump sum, the claim amount under a term plan may be divided into monthly payments. The family member of the policy holder receives a monthly payment, which can be pre-decided when purchasing the policy. Your family will not be impacted by financial hardships due to the regular income.
It is a pure protection plan and does not offer any benefits in the event that the policyholder dies. Insurance cannot be compared to investment options such as Fixed Deposits, which provide guaranteed returns. It is a pure risk coverage.
Government-backed pension schemes
To ensure a steady income, you can also invest in government-backed programs such as the Senior Citizens Savings Scheme and Post Office Monthly Income Scheme (POMIS). You can only invest Rs.30 lakh under SCSS and Rs.9 lakh in POMIS.
There are many pension plans that financial institutions, such as banks, NBFCs and insurance companies, offer. A pension policy can be purchased. After the policy term is up, policyholders will start receiving regular monthly income. These benefits are not available to FDs, which allow you to save your money and then enjoy the returns. You must pay regular premiums.
To ensure your loved ones live comfortably, it is important that you invest your savings in these financial tools as soon as possible.