Having Additional Regular Monthly Income Helps — here is how.

by Abhishek K. Digital Business Executive

An additional source of income is the much-needed backup for families, with rampant unemployment and business losses caused due to the ongoing pandemic. With no guarantees being given on continuity of employment, breadwinners have to move away from relying on one source of income for their livelihood. Above this, what about preparedness for sudden unforeseen expenses in the family? Expenses are guaranteed to mount as families grow; it would be wise to set up a reliable additional money inflow mechanism into the household.

If you’ve already been thinking about building a new income stream, you can work on it by setting aside a tiny portion of your regular income towards the cause. This extra money can be diverted into “safe” constructive avenues that pay back a fixed monthly income. Even if you have retired, it is never too late to plan! This plan will slowly increase your monthly cash inflow, help you become financially independent, and safeguard your loved ones.

Remind yourself about the following reasons for having an additional income;

· You can quickly pay off your debts, thus helping you considerably save on interest amounts which in turn can be reinvested. Once you start saving, you will notice that multiplying income is not so hard.

· You can set up financial goals and work towards them. Want a grand holiday? It might not pinch your pocket as much as it used to earlier.

· Paycheck to Paycheck lifestyle can be shown on the exit door. You can prepare for any eventuality with ease.

· Build a much-needed emergency fund.

· You can plan your retirement sooner. You decide whenever you want to get out of the rat race of constantly earning.

Take charge of your income and begin exploring productive avenues of generating additional income. Do thorough market research, consult a financial adviser and commit to setting aside a portion of your income towards investment. A good option would be a guaranteed or assured income plan. Such plans are usually the non-participating monthly income scheme, where the investor pays an annual premium for a pre-decided duration. Upon policy maturity, a guaranteed payout as a lump sum can be obtained or taken away as a regular monthly income for a specified number of years. All of which will depend on the number of years for which insurance cover is chosen, premium paid, and the sum assured amount upon maturity. The policy term will also include the duration for which the premium is to be paid and the duration of receiving the payout.

Most guaranteed income plans include the following;

· Tax exemption for the income received under the plan for the mentioned tenure. Some may offer additional tax benefits as well.

· Twice the guaranteed income wherein for the first part the policyholder is assured monthly income and upon completion of the same- the monthly income is doubled.

· Payouts happen soon after the tenure of premiums alone is done.

· Death benefits as part of guaranteed protection- in case the policyholder dies during the tenure of the plan, then the person named as the nominee will be given returns as per terms and conditions.

· In case of emergencies, the option to receive returns as a lump sum can be opted for.

Most features of Assured or Guaranteed Income Plan suit investors looking for safety cover as well as benefits. Depending on the choice of plan and the brand, one can also customize options to ensure that maximum benefit is obtained from such plans. The bottom line, make the right choice of investment, now that the need of the hour has been seen- a guaranteed source of secondary income.