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What Are the Best Ways to Plan for a Regular Income?

A monthly income plan is a strategy in which the person receives a certain sum of money each month. This money normally starts to accrue after paying the premium for a few years. These regular income plans are more frequently referred to as “monthly income plans” in the mutual fund sector and as “regular monthly income plans in India,” “assured monthly income plans,” or “monthly pension plans” in the life insurance market. For the ease and benefit of the policyholder, they offer a guaranteed return policy.

What is a Guaranteed Return Insurance Plan?

A Guaranteed return policy or guaranteed return insurance is a regular income plan offered by life insurance companies. This policy features a protection insurance cover for the insured party and, in some cases, a maturity benefit payment at the end of the policy’s lifetime.

 Income

This makes the plan unique from pure play MIPs, which normally provide investors with a monthly payout. Although these mutual fund plans are not insurance products and do not provide monthly payments, some of them do provide lump sum payments.

There are several insurance providers that are providing guaranteed return insurance plans to the policyholders. But, before choosing the policy, it is advised to do market research or online research wherein one can compare the plans.
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For example, the GRIP or Guaranteed Return Insurance Plan by Tata AIA Life Insurance plan is a policy which helps the policyholder in actualising his/her dreams. The policy helps in saving up for major milestones and also gives regular monthly income to the policyholder.

Ways to Earn a Regular Income:

The following are some of the best ways to plan for a regular income. They are as follows:

  • Term Insurance Plan with monthly income

Usually, in the case of a term insurance policy, the family members of the policyholder opt for a lump sum amount. However, in case the family member wishes to opt for a regular payout option, then they can select it in the beginning and receive a regular payout on a monthly basis. This is best for families who have a low economic profile.

  • Saving plans or a savings policy

With the passage of time, the roles and responsibilities in a family increase manifold. Hence, in this scenario, it becomes important to plan to keep things sorted financially. Expenses such as higher education of children, marriage expenses, signing off vehicle loan or home loan, etc., requires immediate liquidity.

Hence, here the Savings Plan will help the policyholder in the form of imparting a regular income. Basically, a savings policy is a type of life insurance cover that helps in saving money as well as promising regular income, lump sum benefit, whole life income benefit, etc., to the policyholder.

  • ULIP or Unit Linked Insurance Plan

The ULIP of Unit Linked Insurance Plan is gradually gaining popularity amongst the masses. This investment avenue is quite lucrative as the premium paid by the policyholders is further divided into two parts.

A part of the amount is invested in either equity, debt or a combination of both. The remaining amount is secured as a life cover for the policyholder. Once the policy tenure is complete, the policyholder can get a regular payout or a regular income.

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  • Retirement Plan or Pension Policy

The retirement phase should be thoroughly stress-free in terms of finances. Hence, here investing in a pension policy or retirement plan will help the policyholder and their spouse financially secure their retirement time. The key objective of a retirement plan is to impart financial stability. Thus, a regular flow of money on a monthly basis is undertaken. In a way, it makes the policyholder and their wife financially independent.

Conclusion

A regular flow of income is a must to lead a happy and financially stable life. Thus, the above-listed ways are safe and zero-risk investment avenues that guarantee a regular income.

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