Money may not be able to buy happiness, but it can surely offer you peace of mind.
As it is, life brings with it plenty to worry about, like buying your property, pay hospital bills, manage the car and home repairs, or funding your child’s education.
After a certain point, all of this starts becoming a burden, especially during the retirement years.
Retirement, also known as the golden years, may not be as enjoyable as the name suggests. For one, you are retired, which means that you do not have a job or a regular income.
Also, the pension that you receive every month only fits to meet your basic needs; it does not give you the space to pursue anything extra.
Whether you like it or not, retirement is here to stay for the rest of your life, and if you have not prepared for it well in advance, you are bound to feel a financial crunch and stress throughout your retirement years.
How to Achieve Financial Security Post Retirement?
It can be stressful to think about retirement and financial security. However, the good news is that today, we are more aware of situations like this than we would have been two decades ago.
Believe it or not, if you plan your finances right during your working years, a monthly income can still be earned, along with your pension to live the comfortable retirement life you always dreamed about.
You could choose to invest in some of the best mutual funds for monthly income, or you could go with retirement plans for working individuals that can take care of all their financial needs when life is most vulnerable.
With a monthly income plan in your kitty, you can not only secure an additional source of income for your retirement but also receive tax, maturity, and death benefits on the returns.
To understand more about retirement plans, here is what you need to know.
What Are Retirement Plans?
Retirement plans are a type of investment that requires you to make contributions from your savings to be set aside as income during retirement.
Continuously investing in retirement plans can help your money manifold, which is not the case with other saving options. Retirement plans are essentially ULIPs that give an insured person the dual benefits of insurance and investment, under a single policy.
Hence, we can say that choosing the right retirement plan can empower you to plan for retirement in a disciplined manner while providing much-needed contingency protection.
Retirement plans from reputable insurers allow you to financially secure your retirement years in a hassle-free and comprehensive way. Let us have a look at what the best mutual fund for monthly income has to offer.
Benefits of Monthly Income Plans
Retirement plans offering a monthly income component, are the perfect instrument to take care of all your worries and your family’s future after your retirement.
These plans provide you coverage of up to 30 years. Also, these plans may offer the following benefits-
Guaranteed Monthly Income
Monthly income plans guarantee a fixed monthly income to the insured for a specific period. This ensures that you are covered for any extra expenses that come along his/her way during retirement.
Another advantage that this retirement plans have is their maturity benefits. The maturity benefits ensure that you receive the complete amount inclusive of the compound and terminal bonuses, once the policy term is over so that you can utilize the returns to your benefit.
Your nominee receives a lump sum amount, in case of your untimely demise within the policy term.
Monthly income plans are mostly ULIPs; thus, they provide tax benefits against both the premium paid and the maturity benefits, under Section 80C and Section 10(10D) respectively of the Income Tax Act 1961.
However, you must duly note that these tax deductions are subject to prevailing tax laws and may change at any time.
Waiver of Premium
In an unfortunate situation, most monthly savings plans waive off all the future premiums payable, while the policy benefits remain active throughout the intended coverage period.
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