The income you receive every month does so much for you. It pays your bills, funds your trips, and fulfils your every need. But if you do not keep a cautious eye, spending can become unnecessary, and saving can become a rare habit.
Without a financial plan in place, your hard-earned income can slip away from your hold, leaving little for saving and investing. Furthermore, the chances are that your monthly income might not be enough to get you by in case you have to stop working.
In such a scenario, you need to have a second source of regular income so that you and your family’s life don’t come to a halt. One of the surest ways you can get a secondary source of monthly income, besides a side-hustle or a second job, is with a monthly income insurance plan.
Here is how it can help you boost your primary income and keep your loved ones secure.
A monthly income plan fuels wealth creation.
While the golden rule of financial savings suggests that you should at least save about 20% of your monthly income, it also advises investing in profitable avenues. A monthly income plan is one such avenue that can boost your income without the risk of any loss.
Being a non-linked product, the monthly income plan keeps your savings intact and gives you increased returns on them.
Furthermore, you also gain monthly income scheme tax* benefits as per Sections 80C and 10(10D) of the Income Tax Act, 1961.
A monthly income scheme maintains your lifestyle standards.
The main purpose of a monthly income insurance plan is to keep your lifestyle intact at all times, especially when an unforeseen crisis strikes.
For instance, if you develop a critical illness or face an unfortunate accident, a fixed stream of income supplemented by a monthly income plan can help you sail through such times. This ensures that the quality of your life remains uncompromised, and your loved ones do not have to take a hit in case anything happens.
With an income replacement more than your monthly salary, you can power through any challenge. Moreover, a monthly income plan comes with an inbuilt life insurance cover. This ensures that in the event of your unfortunate demise, your family members receive a guaranteed1 sum assured to support them in tough times.
A regular income insurance plan helps you fulfil your aims and desires.
A regular income insurance plan helps you and your loved ones plan for any life goal with confidence. By ensuring you never fall short of funds to pursue a passion or fulfil a desire, a monthly income plan helps you tick off goals such as:
- A child’s higher education
- A child’s marriage
- A family vacation
- A home or car purchase
- Retirement planning
- Starting a business
- Quality healthcare expenses
Savings solutions from TATA AIA Life give you complete freedom to align your plan with your life goals, including:
- How and when you pay your premiums – in monthly, quarterly, semi-annual, or annual instalments.
- How you receive the maturity (survival) payout – The regular income or the endowment option.
- How many extra riders# (protective covers) you want to add. The choice of riders# for Tata AIA Life savings plans includes:
- The Accidental Death and Dismemberment Rider# of TATA AIA: This rider# gives an extra monetary sum over and above the base sum assured if you pass away due to an accident or develop a physical injury of a permanent nature.
- Waiver of Premium Plus Rider# of TATA AIA: This rider# waives off the payment of future premiums from you and your family in case of your unfortunate death or permanent disablement. However, this rider# is only applicable till you are 70 years of age.
A regular income insurance plan helps you keep up with repayments.
As the sole or co-income earner of your family, you must have always gone the extra mile in taking care of them. With a regular income insurance plan, you can extend that care even when you are not around. The regular income you receive from the monthly income scheme can even go towards paying any debts, loans, or mortgage ensuring the responsibility of repayment does not fall on your loved one’s shoulders.
Even during the continuity of your life, the income received can supplement your primary income and pay off debts much faster than it would take to do so with a single income.
A regular income plan gives you much-needed peace of mind.
Along with the financial benefits, a monthly income scheme also gives you the necessary peace of mind to live a worry-free life. You do not have to think twice before celebrating a milestone or fulfilling a long overdue dream, or taking time off. You can rest assured knowing you have done everything in your capacity to secure your family.
To conclude:
Your monthly income not only secures a source of cash but also lays the foundation for a steady and peaceful life. While it can be tempting to indulge in unnecessary spending from time to time, it is best to be mindful about how you spend your money, how you save it, and how you choose to invest it. A monthly income plan is one of the surest ways to secure that.
L&C/Advt/2023/Feb/0622
FAQs
Income provides economic resources that shape choices about housing, education, child care, food, medical care, and more. Wealth, the accumulation of savings and assets, helps cushion and protect us in times of economic distress.
Why is your income important? ›
Income provides economic resources that shape choices about housing, education, child care, food, medical care, and more. Wealth, the accumulation of savings and assets, helps cushion and protect us in times of economic distress.
What are the 5 basics of personal finance? ›
There's plenty to learn about personal financial topics, but breaking them down can help simplify things. To start expanding your financial literacy, consider these five areas: budgeting, building and improving credit, saving, borrowing and repaying debt, and investing.
What are 3 benefits to having an accurate budget each month? ›
Benefits of budgeting include providing "guardrails" (i.e., designated limits) for spending, achieving financial goals (if savings is included as a fixed "expense"), and for peace of mind.
What are the 6 main purposes of a budget? ›
A budget can also set you on the right path to achieving your financial goals, spending within your means, saving for retirement, building an emergency fund, and analyzing your spending habits.
Why is monthly income important? ›
Your monthly income not only secures a source of cash but also lays the foundation for a steady and peaceful life. While it can be tempting to indulge in unnecessary spending from time to time, it is best to be mindful about how you spend your money, how you save it, and how you choose to invest it.
What are 3 important factors that will affect your income? ›
Some of the factors that determine an individual's income level include education level, economic trends, and skills. The level of education has a significant impact on your future income and can expand your access to prospects within a chosen sector based on your educational level.
What are the 5 points of finance? ›
They are saving, investing, financial protection, tax planning, retirement planning, but in no particular order.
What are the 5 C's of finance? ›
The 5 C's of credit are character, capacity, capital, collateral and conditions. When you apply for a loan, mortgage or credit card, the lender will want to know you can pay back the money as agreed. Lenders will look at your creditworthiness, or how you've managed debt and whether you can take on more.
What are the 5 benefits of having a budget? ›
Why budgeting is important: 5 key benefits
- Keeps you from overspending. ...
- Enables you to manage debt and build credit. ...
- Gets you moving toward your short- and long-term goals. ...
- Prepares you for emergencies. ...
- Makes saving for retirement easier. ...
- Use a budget to gain control of your financial life.
A budget is a plan you write down to decide how you will spend your money each month. A budget helps you make sure you will have enough money every month. Without a budget, you might run out of money before your next paycheck.
What kind of money counts as income? ›
Taxable income includes wages, salaries, bonuses, and tips, as well as investment income and various types of unearned income.
Which strategy will help you save the most money? ›
The 5 Most Effective Strategies To Save Money For The Future
- Set Your Goals Early On. Setting a financial goal early on will boost you to stick to your savings plan. ...
- Understand Your Cash Flows. ...
- Open a Savings Account. ...
- Rethink Debit Cards. ...
- Monitoring Your Spending. ...
- Revise Your Emergency Fund.
When you pay yourself first, you pay yourself (usually via automatic savings) before you do any other spending. In other words, you are prioritizing your long-term financial health.
What is personal finance and why is it important? ›
It involves a broad spectrum of financial aspects, including budgeting, saving, investing, and planning for the future. At its core, personal finance is about understanding and efficiently managing your income, expenses, investments, and savings to achieve financial stability and security.
Why is personal income important? ›
What is Personal Income? Income that people get from wages and salaries, Social Security and other government benefits, dividends and interest, business ownership, and other sources. These statistics can offer clues to Americans' financial health and future consumer spending.
Why is income level important? ›
Income level is a major factor that determines the financial stability and quality of life of an individual. It is the amount of money earned by a person or household over a given period. Income level directly affects an individuals ability to pay for their basic needs such as housing, food, healthcare, and education.
What is the main purpose of income? ›
Income is one of the most basic measures of economic activity. For individuals and companies, it measures the net gain of their revenues as a result of working or doing business. In public policy, income represents the basis for most forms of taxation.
Why income is considered as an important goal? ›
It gives a numerical aspect of development. A higher income unquestionably accounts for a person's ability to enhance his living level and care for his necessities.
