A term plan with monthly income is an extremely useful insurance scheme to earn monthly income from your savings. But before you invest in a term plan with monthly income you must understand what it is.
What is a Term Plan with Monthly Income?
A term plan with monthly income is an insurance scheme to ensure monthly income through insurance schemes. They are like investment schemes but with life insurance benefits and capital protection. A term plan with monthly income is an excellent way to get returns from investments in the future while beating inflation.
Why Should You Invest in a Term Plan with Monthly Income?
Everyone should have a term plan with monthly income to get income even during unemployment. You can invest your savings from today’s income to get income in the future or during your retirement. This monthly income can be useful for your daily personal and medical expenses. Listed below are the other major reasons you should invest in a monthly income plan.
Top 7 Reasons for Getting a Term Plan with Monthly Income
Monthly income itself is the great catch of term plan with monthly income. An ensured monthly income will ease your burden of expenses when you become unemployed. Some monthly income term life insurance plans also give health and life cover to the policyholder.
Flexible Premiums and Returns
A term plan with monthly income gives you the option to set an affordable premium amount. You can even decide the term duration and the monthly income you will require. Many people prefer such term insurance with monthly income because of their flexibility.
A term plan with monthly income also has maturity benefits. Some providers give partial lump-sum money after paying the premiums within the speculated time. There are also bonuses upon completion of term insurance with monthly income plan.
Some insurance providers give monthly income up to 30 years from the maturity date. For example, if you want to retire at 60, you can align the term plan to mature when you retire. So, now you can get a monthly income till the age of 90. Such long-term benefits are a highlight of the term insurance with monthly income.
Alike every insurance scheme term plan with monthly income is tax-exempted in India. The premium of term insurance with a monthly income plan is exemptible up to Rs. 1.5 lakhs per year. It is subject to the fact that the yearly premium is less than 10% of the total insured sum.
Partial Payments to Dependents
During the sad demise of the policyholder, the insurance provider will give the benefits to the dependents and family members. The fact that term insurance with monthly income doesn’t pay the full amount at a time is a relief. Sometimes, the dependents are not mature enough to handle a lot of money. So, the insurance providers give some money at the time and the remaining money in the form of monthly income.
Premium Waiver in Case of the Sad Demise
In case of a policyholder’s sad demise midterm, the insurance provider waives off the remaining premium amounts. It is a relief to families who have a single earning member. The monthly income term life insurance benefits are also given without any changes in such circumstances.
We discussed all the reasons why one should invest in a term plan with monthly income. You must realize a monthly income at old age will help you financially. With its help, you won’t have to rely on anyone else for your day-to-day expenses. It is a good way to remain economically independent even in your retirement.
*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.