3 Ways an Additional Income Plan Can Be Helpful to You
Financial independence is one of the most important aspects of life. It helps you make smart investment decisions while satisfying your family commitments without depending on another person. It builds satisfaction and, in a way, helps you lead a successful life!
Therefore, financial independence is essential if you want to retire early or pursue an interest of your choice. So, what can help you achieve such a financial condition in your life? An additional income plan is certainly an appropriate option! Here are three ways in which the additional income plan can be helpful to you!
Before we get started, let us understand what an additional income plan means.
What is an Additional Income Plan?
The additional income plan is a comprehensive life insurance-based savings policy that provides a life cover and a guaranteed1 return on maturity. The guaranteed1 return can be made available to you as a regular income for a specific income period beginning from the maturity date.
You can decide on the guaranteed1 regular income during policy inception. It can be based on your short term and long-term financial commitments. If the purpose of the additional income is to serve a purpose in the long term, you can also account for the inflation rate. And, you can avail of the regular income monthly or annually. Thus, it is a savings insurance policy for all your financial requirements.
Tata AIA Life Insurance savings policies also provide the option of regular income with the critical illness benefit. You can earn regular income when you get diagnosed with a critical illness covered during the policy term. You can also avail of compensation for your hospitalisation charges or any other medical expenses and reduce the financial burden on your family.
3 Ways an Additional Income Plan is Beneficial
The guaranteed1 regular income from the savings policy will be beneficial when you make the best use of the features with adequate financial planning. Here are three ways to help you understand that in a little detail.
Supplements main source of income - If you have increasing family commitments that you cannot accommodate within your steady flow of income, then the additional income plan, such as the Tata AIA Life Insurance Smart Income Plus(UIN: 110N148V03), can certainly supplement your main source of income.
For example, if you are the only earning member in the family and have your spouse and two children living with you. Anytime in the future, your parents might get sick due to old age, and want to live with you till the end of their life. In that case, your expenses will increase to a greater extent. Either your spouse should start working and help you plan for monthly income or have an additional income to lead the family.
When you finance in a savings insurance policy such as the additional income plan, you will start getting the additional income to manage your financial needs at the end of the policy term. It will help you handle the increasing family commitments while being independent.
Helps you pursue your interest - You have one life to explore, live and enjoy. There might be several interests that you want to pursue in your lifetime. For instance, you want to start a new business, go on a vacation with your family, explore the world, apply for higher education at a foreign university, etc. If you want to pursue such interests, financial resources are the most important to accomplish while being independent.
In the case of starting a new business, you cannot expect the business to start providing the desired profits at the very beginning. It will go through different scenarios that increase or decrease the revenues and stabilise in the long term. Therefore, the guaranteed1 income plan will provide a source of income for your survival in such cases. For instance, the Tata AIA Life Insurance Guaranteed Returns Insurance Plan (UIN: 110N152V09) enables you to choose between a guaranteed1 regular income, lump sum benefit or whole life income benefit which can ensure a steady flow of funds for you.
The additional income plan also qualifies for a tax* deduction and exemption benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961. The tax* deduction can be availed up to ₹1,50,000 annually under Section 80C.
Helps you to retire early - The changing lifestyle and the global scenarios compel people to work hard till they reach the age of 40 and then retire. Well, it is a fair decision. However, you have to ensure enough financial resources to afford your retirement expenses. It should cover your routine expenditures, medical requirements, and other family obligations, such as planning for your child's marriage or paying their tuition fees.
When you have a defined savings plan, including all your commitments, you can decide when you want to retire, the regular income required, and what income period with the monthly income plan and invest accordingly. And, if you plan and invest early, you can choose a longer policy term, accumulate a huge sum with a reasonable premium rate and retire peacefully.
With Tata AIA life insurance savings options, like Tata AIA Life Insurance Fortune Guarantee Plus (UIN: 110N152V09) , you can also choose the return of premium option and receive a refund of the premium paid at the end of the income period
An additional income plan is a savings insurance plan that provides a life cover and a guaranteed1 regular income from maturity to a specified income period. You have the flexibility to decide on the regular income, policy term and the income period during policy inception.
The additional income can serve as a supplement to the main source of income, help you pursue an interest of your choice and even retire early. In addition, it has additional tax* benefits that help you in the long term. Therefore, invest in such savings plans in India to protect your family's financial future in your absence and pursue your interest while ensuring financial independence! It will keep you satisfied and have a happy heart!