PEOPLE across the world have experienced hardships due to the pandemic outbreak. It disrupted people’s financial goals and forced them to re-examine their financial inflow and investment planning. It has become difficult to predict when one can expect more certainty and financial stability.
Having more than 24 years of experience in financial services, I would recommend individuals to make a wise move to stabiliSe your finances. As an experienced financial consultant in the insurance industry, I recommend that it is the best time to build and rebalance your investment portfolio. It is the ideal time to take a preventive and corrective financial action to ensure the overall financial wellbeing of your family.
Over the past few months, when it comes to investing the trends have evolved. In my experience of various financial meltdowns, the pandemic has uprooted the traditional investing habit due to the heavy losses incurred through these methods. People are now looking forward to creating a legacy instead of a liability when it comes to their investments.
Earlier, while looking at investment options, a good number of people preferred to invest in the property market. Buying a flat seemed like a secured investment option as it provides a monthly return in the form of rent. However, the pandemic has led to an onset of changes. Individuals with rental properties flocked back to their hometowns or permanent addresses as their work turned remote. This shift in mindset about the location of home quarantine incurred a lot of income losses for those who owned investment properties. Along with that, those invested in commercial properties also had to incur losses.
Here is financial investment advice for people who are still confused and want to go for the safest and most secured investment option.
Choosing a Monthly Income life insurance plan will help you avail the benefits that you would aim for, without the risk of losing income due to external factors. As this plan is designed to provide a monthly income to the policyholder besides the regular benefits payable on maturity.
These plans are also guaranteed with tax-free returns and fall under assured income plans providing a comprehensive saving solution to aid an individual’s financial planning.
How does it function?
Once you choose any amount as per your need, based on that amount the premium and the sum assured are determined. These amounts are fixed, guaranteed and are not linked to market performance. The policyholder can choose any amount of coverage within the minimum and the maximum allowable limits and avail the income plans.
How does the bonus and premium payment work?
Bonuses get accumulated over the plan tenure and are payable at the policy end. While there are certain plans which have the interim and terminal bonus added to them, there are also some plans that might pay a component of the accrued bonuses along with the monthly income. Other than the bonus, the plan also offers the benefit of fixed income which the policyholder can avail.
The premium of these plans is payable for a limited tenure while the cover is for a lifetime.
The key benefits that will help you sail through this pandemic making you financially secured:
· The benefit of this product is to provide necessary liquidity which is the provision for monthly income. The monthly income starts immediately after the premium paying term is over. These funds can be utiliSed to meet monthly financial obligations.
· Individuals looking out to create a corpus for retirement can also consider this plan as it helps to build tax-free lumpsum corpus at maturity.
· The income under this plan is guaranteed compared to other monthly income plans. Thus, you are saved from the volatility of capital markets and can enjoy the assured fixed income on monthly basis.
· Monthly Income Plan also offers comprehensive financial security to the family as on the death of the Life Insured, it provides Sum Assured, Monthly Income and maturity benefit to the nominee and also all future premiums are waived off.
The satisfaction of individuals with this method of investment validates the claims regarding financial security and freedom even in uncertain times. As an expert, I would like to suggest, if you are looking out for investment that will give you regular returns with zero worries- monthly income plan provided by the life insurance companies can be one of the profitable options to consider.
By: Rahul Borundiya, Leading Financial Consultant and TOT Advisor, Best Investments, Pune