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Top Monthly Income and Life Insurance Schemes You Should Know in 2022

02-08-2022 |

Savings, and investment decisions for financial security should largely depend on future financial needs. Some people want to invest in schemes that provide a lump sum at the end of the policy tenure. Many others want to invest in schemes that provide a monthly income after the policy tenure.


One of the ways to save money and get a life cover as well is to opt for an insurance plan. Many insurance plans, like guaranteed1 return plans, provide a fixed amount on maturity, along with a life cover. The life cover will help your family fulfil their financial needs in case of your untimely demise.


You may be unable to utilise a lump sum wisely if you don't have a definite future money goal. However, a monthly income plan will provide the funds regularly over the required income period and help you utilise them diligently. Moreover, you can also opt for a savings insurance plan that provides you payouts in the form of regular income on maturity, along with a life cover.


So, here is a detail about the top ten monthly income schemes you should know in 2022.



Top Monthly Income Schemes to Know in 2022

 

  • Retirement Annuity Plan - Life insurance providers offer retirement solutions that provide a monthly income for the required period. You can pay a lump sum premium, purchase the annuity plan, and choose from the flexible options to receive the payout benefit from the life insurance retirement plan.

    For example, when you buy the Tata AIA retirement plan, you can choose between the immediate and the deferred annuity plans. The immediate annuity plan will start providing the monthly income immediately after you purchase the retirement plan, and the deferred annuity plan will help you defer the payment of the monthly income to a later date.

  • Guaranteed1 Return Life Insurance Plan- A guaranteed1 return Life insurance plan is a comprehensive life insurance plan that provides a life cover for the policy tenure and a guaranteed1 return at maturity. The policy also allows you to choose between the regular income, lump sum or a combination of the regular income and lump sum for the maturity benefit.

    You can choose the regular income and decide the income period, whether for a fixed period or until death, based on your family commitments. As the returns are guaranteed1 for the guaranteed1 return plan during the policy inception, you can decide on the extent of regular income required and invest accordingly.

  • Fixed Deposit Monthly Income Scheme - Fixed Deposit is one of the most common forms of investments for a monthly income provided by the banking institutions in India. In a fixed deposit income scheme, you must deposit a lump sum for the policy tenure. It will have a lock-in period. The fund will earn interest during the policy period. The earned interest will be provided as a payout benefit periodically based on your requirements, such as monthly, half-yearly, quarterly or annual basis. As the interest rate for your investment is pre-defined, it is one of the most secure and reliable sources of monthly income.

  • Post Office Monthly Income Scheme** - The Post Office Monthly Income Scheme is offered by the Post Office, as the name suggests. You can initially open the account with a minimum of ₹1000 and increase the investment amount as you prefer.

    You can deposit ₹4.5 lakhs in a single account and up to ₹9 lakhs in a joint account. The interest earned from the deposited fund will be provided to you at the end of every month. As it is a government-sponsored monthly income plan, the interest rates will depend on government bonds. It is a secure form of investment for conservative investors.

  • Senior Citizen Savings Scheme** - The senior citizen savings scheme is another post office scheme available for citizens above 60 years of age. It provides a steady and regular income based on the interest rate and is payable from the time of deposit. The minimum deposit is ₹1000, and the maximum is ₹15 lakhs for the senior citizen monthly income scheme. The deposit should be in multiples of ₹1000.

  • Long-Term Government Bonds - The State or the Central Government issues the debt instrument or the long-term government bond. The duration of the bond ranges between 5 years and 40 years. The Government engages in such debt instruments to finance the country's economic needs. The interest earned from these Government securities will be provided to you. It is a low-risk investment that offers higher liquidity to buy and sell in the open market.

  • Systematic Withdrawal Plan In Mutual Funds - A mutual fund is an investment in the securities market regulated by a mutual fund manager for your financial benefit. It will provide suitable returns in the long term. When you purchase a systematic withdrawal plan, you can withdraw a fixed amount of capital gains on mutual funds monthly. You can benefit from a regular income while staying invested in the mutual fund.

  • Corporate Deposits - Non-Banking Financial Institutions(NBFC) in India offer company or corporate deposits. These corporate deposits are extremely liquid and provide better interest rates than regular fixed deposits. You can get the interest rate credited to your account regularly based on the agreed terms and conditions with the NBFCs.

  • National Pension Scheme - The National Pension Scheme is a retirement plan backed by the Government of India to encourage people to invest funds periodically through their employment tenure. It is a monthly pension scheme that provides a regular income after retirement. The savings fund earned will be pooled to form a pension fund invested in Corporate Debentures, Government Bonds, etc. At the end of the policy tenure, you can withdraw a portion of the accumulated fund and invest the rest in an annuity plan for a regular income.

  • National Savings Certificate - It is another popular savings scheme that can generate fixed income regularly. The Government launched it to encourage small-scale and middle-income groups to save funds for their future. The lock-in period is 5 years. The National Savings Certificate can also be used as collateral to avail loans for emergency financial needs.


Conclusion


Investing in monthly income schemes will secure your future and provide the necessary finances to survive and live peacefully at any time. Choosing the right monthly income scheme will depend on financial requirements and flexibility.

Compare different products, evaluate the cost and choose the ideal product that will suffice for accomplishing your future money goals at an affordable rate. The monthly income savings scheme also qualifies for tax* benefits based on the prevailing tax* laws. The year 2022 has taught many individuals about the importance of financial preparedness. Therefore, purchase the best product, choose a longer term, and stay invested!


L&C/Advt/2022/Jul/1762

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TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

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TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

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Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA), Tata AIA Life Insurance is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

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  • Insurance cover is available under the product.
  • The products are underwritten by Tata AIA Life Insurance Company Ltd.
  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.
  •  For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.
  • *Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.
  • 1Guaranteed Returns/Payouts depend on Plan Option, Policy Term, Premium Payment Term and Age at entry
  • **Source: https://www.indiapost.gov.in/Financial/pages/content/post-office-saving-schemes.aspx

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