Here’s How You Can Ensure That Your Family Gets A Regular Income

Mar 28, 2018 | 9 months ago | Read Time: 2 minutes | By iKnowledge Team

Your family depends on you to take care of their expenses, even after you. Read on to know how your family’s monthly income can be continued in case of an unexpected event.

Every household has expenses. School fees, groceries, electricity and phone bills; you get the gist. These are some of the regular expenses that are inevitable. And if you are the breadwinner of your family, your family depends on you to take care of these expenses. In such a scenario, you need to think of their well-being when you are not around anymore. Here’s how you can ensure that your family is financially protected:

  • Insurance

Insurance is a great way to provide financial support to your family. There are different types of insurance policies available in the market. To ensure that your loved ones get a regular income after your demise, you can buy a term insurance policy or invest in a unit-linked insurance plan (ULIP).

  • Ensure staggered pay outs

Term insurance policies offer both lump sum and staggered payment options to recipients. In a lump sum, the family receives the entire claim amount at one go, which can be useful in case there are any loans to be cleared. Plus, with staggered pay outs you can ensure that the claim amount is spread across 10-15 years, which can become a source of regular monthly pay outs.

For example, if you have an insurance cover for Rs 1 crore, you can ensure that the family receives Rs 10 lakh initially. The remaining amount of Rs 90 lakh can be distributed over 15 years. This way, the family receives Rs 6 lakh each year through steady monthly payments.

Find out how much your monthly premium will be for a monthly income of, say, Rs 50,000 with our term insurance premium calculator.

  • Pay premiums on time

One of the easiest, and simple ways to make sure your family gets a regular income after you, is by paying your insurance premiums on time. Wondering how paying premium on time will help? When you pay premiums on time, the policy benefits continue without any interruptions, which means, your family will receive a steady source of income after you as per the policy rules. In case, you happen to miss your premium, most insurance companies generally offer a grace period beyond the due date. This can range anywhere from 15-30 days. But in case you miss the grace period too, the policy lapses.

  • Utilise the top-up facility

When you invest in ULIPs, you can increase your investment amount. This means, you can generate more wealth for your loved ones and a source of regular income in the years you are not around. With the top-up facility, you can put an additional amount over and above the current investment to ensure a growth of the fund. This can be a good idea when you get a bonus or a salary raise at work. The best part is you can also avail tax benefits on the top-ups!

To sum up

The most important thing in life will always be family. So, give your family a security blanket against unexpected events in life, so that your loved ones can maintain their current lifestyle and meet their financial goals even when you are not around.


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