Direct plans offer higher NAV as they save on distribution expenses

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SummaryInsurance is a risk-management tool. If you are the sole earning member, any unfortunate incident involving you may cause hardships to the family.

be lower if you have already saved some amount.

I have invested all my savings in a 3-BHK flat. I don’t have enough for retirement. Can I mortgage my flat to arrange money for my expenses after retirement?

M S Vikramanan

Banks now offer reverse mortgage schemes, where you can mortgage your property to the bank and, in turn, the bank will provide you monthly amounts to meet your expenses. However, the property should be free of any encumbrances and you should meet the terms and conditions of the loan. The age criteria for availing reverse mortgage is normally above 60 years. The amount can be repaid by your legal heirs who can get the ownership of the property in future. In the event of default, the bank will arrange to auction the property and pay the balance to the legal heirs.

The author is chief financial planner with Max Secure

Send your queries at fepersonalfinance@expressindia.com

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