A monthly income scheme is a type of investment plan that provides the investor with a consistent stream of income. The investor gains a regular stream of income over a period of income. Once the policy is matured, it allows you to gain regular monthly income from the monthly income scheme for a predetermined period. Monthly income schemes are for individuals who want to add a fixed, regular income to their income every month. The monthly income scheme is a tailor-made plan for the investors based on their requirements and level of income.
There are several features provided by the monthly income scheme that provide arguments in its favour. The monthly income provides the investor with steady payouts every month. It helps in boosting your monthly income to a certain extent. In cases where the investor dies, his beneficiaries can avail the assured sum every month to support themselves. In addition, flexibility is available to the investor’s beneficiaries in case of unfortunate events wherein they can avail either a lumpsum payment or monthly income.
Investing in a monthly investment scheme is an easy, hassle-free process. Several monthly investment schemes are available to the customers. The customers can choose the investment plan as per their liking, suitability, requirement and level of income. You can tactfully invest in monthly investment schemes that will provide you a support cushion when you retire and your regular flow of income stops.
The steps to make an investment in monthly investment schemes go as follows:
- The first step is to choose a financial institute or insurance service provider who is offering monthly investment schemes. Once you have shortlisted the vendors and service providers, go to their website and enter your required details like gender, age, contact details, etc.
- Entering these details will allow the service provider to generate a quote based on the details you provided and will allow them to contact and inform you.
- Once you have received the quote, you can go over the terms and conditions of the policy. This is one of the most important steps and you may proceed cautiously here. Consider taking aid from a professional if you feel you are getting confused.
- If you are at a stage of clarity and are ready to move ahead with the investment in monthly investment schemes based on the quotes you received, you can go ahead, fill up the policy information form, and provide the service provider with all the details that are required.
After the verification of your details by the service provider, you will receive a confirmation from them that your investment in the monthly investment scheme was successful and completed. This investment will allow you to obtain tax benefits like a deduction available in the Income Tax Act, 1961. This deduction is worth Rs. 150,000. The monthly investment plan also has other benefits like flexibility in the payment of premiums. Premiums are also extremely budget-friendly and it has a life cover to protect your family in case of unexpected events.