How to Ensure a Regular Income Stream for Your Family?
If you are one of the principal providers of your family's income, it comes with the duty of ensuring that this income is sustained for your family even when you might not be around. For your dependants to suddenly take over when you are no more around, could be very overwhelming, and so having a plan to ensure they don;t stress more is of high importance.
It is noticed that working professionals invest in a guaranteed money back policy that assures their dependent families' financial security. Planning for emergencies is a useful habit to develop as accidents can occur at any moment and in any location. When it comes to monthly expenses, though, having the correct kind of backup plan which acts as a monthly income scheme for your familyis vital.
Consider the typical things that may be affected if the breadwinner dies unexpectedly as you plan to ensure your family's financial security. If you have a loan to repay, the lump sum money received from the insurance can be used to pay it off. But what about recurrent costs such as electricity, education fees, grocery expenses, and other necessary expenses?
For the long term thus, a Guaranteed savings plan is your best bet. It typically allows you to pick how you want your benefits to be paid out as per your family’s goals and requirements. For example, your family can get annual payouts for 12 years in our guaranteed savings plan called Aviva New Family Income Builder.
What is a Guaranteed Savings Plan and How Can It Assist You in Building an Income Stream?
A Guaranteed Savings Plan is a Life Insurance Savings Plan that offers both a guaranteed return and a life cover. In the event of your untimely death, the life insurance will pay the agreed-upon amount to your family. They can be used to pay off debts or pay for an upcoming obligation. It is a versatile financial solution that may be tailored to your specific savings requirements. You can, for example, pay the premium for a set period of time and choose whether to pay monthly, quarterly, annually, or semi-annually premiums.
Most crucially, you have the choice of receiving your reward as a lump sum or as a regular income. You can choose the regular income option for the Life Insurance guaranteed return if you want a continuous income stream for your family.
What Should You Think About When Creating an Income Stream for Your Family?
1. Establish a budget:
The first and most critical step is to determine your family's needs. It can cover your regular monthly costs as well as additional financial objectives. You must account for the rate of inflation in your savings strategy while planning for your family's future. Prepare a precise financial plan based on the budget and taking inflation into consideration. As you get older, it should not cause you to lower your living standards.
2. Plan for unexpected crises:
As you prepare your financial plan, keep in mind the financial crisis that may happen in the event of your untimely death. In today's world, with rising prices and unforeseeable disasters, a guaranteed income plan such as Aviva New Family Income Builder is required.
By choosing Aviva New Family Income Builder as your long-term investment plan, you can have enough future corpus not only to live comfortably, but also to sustain your family’s anticipated expenses.
What are the benefits of purchasing Aviva New Family Income Builder?
The Aviva New Family Income Builder plan is the one that provides both wealth generation opportunities and financial security, as well as simplicity. Here are a few key features of the policy:
- From the end of the 13th policy year, you will receive an annual payout equal to 1.5 times the annualised premium for the next 12 years to assist you in funding your goals and covering any unforeseen needs. • Based on your age at the time of admission, you are eligible for a Guaranteed Terminal Benefit at the end of the 12-year premium payment period.
- At the end of the 24th year, in addition to the final yearly pay-out, you will get a lump sum payment equal to 6 times the annualised premium.
Aviva's New Family Income Builder has a number of advantages.
Death Benefit: This plan is meant care for your loved ones. If something unfortunate happens to you during the premium-paying term and your family (nominee/beneficiary) files a claim, your family (nominee/beneficiary) will be entitled to the following benefits:
- 1.5 times the annualised premium along with the Guaranteed Terminal Benefit paid at claim settlement
From next year onwards, on every death anniversary, the nominee shall receive 1.5 lacs for 11 years.
Along with the last payout ( 11th year) there shall be a lumpsum payout of 6 times the Annualized premium, post which the policy shall terminate.
The Aviva New Family Income Builder plan doubles the effectiveness of your savings by including Life Insurance and regular guaranteed pay-outs as the maturity benefit. Whether you begin a new chapter in your life or plan to cover for future uncertainties, Aviva New Family Income Builder not only helps to offer a wider safety net for your family, but it also allows you to carry out your responsibilities comfortably with the guarantee of always being there even when you aren’t.
AN May 20/22