When one retires, there is a prospect of the non-earning for a decade or two which is why to ensure the security of themselves and their family while meeting the daily needs are believed to be of great importance. Post-retirement you need a financial portfolio that will help you enjoy the luxuries of retired life. Thus, it is crucial for you to have a fixed source of stable income post-retirement, which at the same time, is also safe. For which, you should invest in a monthly income advantage scheme to get enough returns with greater security. In a nutshell, having a monthly income scheme added to your financial portfolio with help your lead a stress-free and enjoyable retirement life.
What is a Monthly Income Advantage Scheme?
Probably one of the most popular investment choices for people post-retirement, a monthly income scheme is must-have in the financial portfolio of individuals. True to its name, the monthly income scheme is a type of investment instrument in which you get an option to receive a certain sum of return every month.
However, when you invest in a monthly income scheme, you generally receive the return after investing for a few years. A monthly income scheme is one of the best financial instruments when you need money to fulfil the expenses of your nearby future post your retirement. Additionally, with popular insurers like Max Life Insurance, you get a life cover up to 25 years by paying premiums for only 15 years or so. They also offer a tax deduction for your premiums based on the prevailing tax benefits.
Benefits of a Monthly Income Advantage Scheme
A monthly income scheme is the best bet for a steady income post-retirement. Here’s why:
Income Security
With a monthly income advantage scheme, you can manage your expenses regularly after your retirement. Therefore, you get monthly income security for yourself and your family members. Thinking further, you can also invest the monthly return in a short-term plan like Fixed Deposit or Recurring Deposit to make your money work hard for you.
Financial Independence
Getting a guaranteed monthly income is vital for your post-retirement since it gives you financial independence. You can accordingly live wherever you want, go for a vacation or invest further with the help of a monthly income scheme without being dependent on anyone.
Maintain a Legacy
An investment instrument like a monthly income scheme offers you tangible financial benefits to leave a legacy for your family members. You can either leave the lump sum money for your family members or can take advantage of the regular monthly return to fulfil their monthly needs. Additionally, a monthly income scheme offers death benefits, so in case of any mishap or demise, your nominee will receive a lump sum, and the policy benefits will continue as before.
Look at How a Monthly Income Plan is Different from Mutual Funds
A mutual fund is a standard investment scheme in which first it collects the funds from various investors and then invests those funds on their behalf on different assets to gain a return. Likewise, a monthly income plan also accumulates the money from investors and then crucial for you them on either equity or debt or both on behalf of the investors.
However, unlike Mutual Funds, a Monthly Income Scheme also provides life insurance along with definite gains on your investments. So, this scheme has an insurance component along with wealth creation, which a Mutual Fund does not. Hence, this instrument promises fund to your family in case of any mishap or your untimely demise.
Other than this, on the one hand, Mutual Funds provides tax benefits only in the case of ELSS (Equity-Linked Saving Schemes). However, as per the Section 80C of Income Tax Act, a monthly income scheme provides you tax benefits under all the pretences and whatever money you invest is deducted from your total taxable income.
So, if you would like to invest in a monthly income scheme, then you should go through the list of best monthly income plans from reputed insurers. You can compare them and invest in the best retirement plans in India that will you help you to meet your post-retirement financial goals and needs.
