How to ensure a steady income in the absence of earning member of the family?

1. How to ensure a steady income in the absence of earning member of the family? • Death is certain but when will an individual die is not. If an earning member of the family dies after retirement, the family suffers an emotional loss but not a financial one. However, if the earning member dies prematurely, the family suffers a financial loss as well. This financial loss puts the family at a grave risk since they might not have sufficient funds to meet their lifestyle expenses and financial goals. • Death cannot be avoided but you can definitely create a financial provision to safeguard the financial loss suffered in case of premature death. This financial provision can be done by buying a term insurance plan. A term planis a life insurance policy which covers the risk of premature death. It comes at a very low premium so that you can opt for a high sum assured. The sum assured is then paid to the family if the insured dies during the term of thepolicy. • If you invest in a term insurance plan, you can definitely provide for the financial loss that your family would suffer in your absence. In fact, if properly planned, a term insurance plan can help in generating a steady source of income in the absence of the bread-winner of the family. Here’s how– • Buying a term plan with monthly incomebenefits • Modern-day term insurance plans have undergone a major transformation. They are no longer simple insurance plans which covered premature death. Today’s term plans have a lotof • value-added benefits and features which provides policyholders with something extra from their policies. Modern-day term plans come with inbuilt rider benefits, lifelong coverage option, enhancement of sum assured option as well as different benefit pay-out options. You can choose to receive the death benefit in lump sum, in monthly instalments or partially in lump sum and partially in monthly instalments. Plans which pay monthly incomes are also called monthly income term plans and they are ideal in creating a regular source of income for your family. You can buy a term insurance plan which offers the death benefit in monthly incomes so that after your demise, your family would receive regular monthly benefits for a stipulated period. These benefits would create a steady source of income for your family preventing them from facing any financialtrouble. • Investing the benefits in a monthly incomescheme • Another way of creating a steady stream of income post the death of the bread-winner is to invest the lump sum policy benefit in an avenue which yields monthly incomes. Your family can invest the sum assured in a fixed-interest bearing instrument which also gives monthly incomes. The investment would earn interest and the interest would create a monthly stream of income which would help the family meet its day-to-day expenses easily. Alternatively, monthly income plans of mutual funds can also be considered as an alternative. These plans also pay monthly incomes which create regular cashflow. • Term insurance plans, therefore, provide your family with a financial corpus which helps them generate a steady flow of income for their financial needs. A term plan, therefore, provides both you and your family a sense of financial security even when life takes an unexpected turn. You should, therefore, invest in the best term insurance plan for yourself keeping in mind to choose an optimal sum assured which would be sufficient in providing financial assistance to your family inyour

2. absence. Compare the available plans based on their coverage features, benefit pay-out options and premium rates and then choose the best term insuranceplan.