Term Insurance Monthly Income

When your loved ones depend on you for their well-being, you leave no stones unturned to ensure their security. Buying term insurance is one such crucial step. It shields your family against financial distress if an unfortunate event occurs. In your absence, the payouts from your term plan can help them lead the life you want for them.

However, ensuring your family’s access to the funds for meeting their living costs is not enough. You must also make sure that they can use the funds effectively to cover their needs.

Unfortunately, not everyone has the skill to handle finances well. Your nominee may fail to invest a lump-sum payout from your term plan into profitable ventures. Or they might overspend, finishing the money quickly. Your life cover will then not be able to sustain them.

If you feel that your family might lose their resources through poor financial decisions, you have another option to safeguard their finances. You can opt for a term plan with monthly income payout.

ICICI Pru iProtect Smart term insurance plan provides options on how you want your nominee to receive the sum assured. Apart from a one-time, lump-sum payout after an unwanted event, you can also select the ‘Monthly Income’ option.
A monthly income term insurance plan pays the sum assured to the nominee in monthly instalments. The entire amount is not paid at one go. Such instalments act as a replacement for your salary. With such regular incomes, your family gets enough funds for their day-to-day expenses, instead of having to manage large sums of money. The constant inflow of cash can be their safety-net against any financial crisis.

Let’s assume your current age is 35 years and your monthly salary amounts to Rs. 50,000.

And you opt for a life cover for Rs. 60,00,000 for a 25 years term. But you select the payout option that disburses the sum assured through monthly instalments.

If after 15 years, an unforeseen event occurs, your family will get a regular monthly income.

Your coverage was Rs. 60,00,000. And your term plan with monthly income had a tenure of 25 years, of which (25 – 15) = 10 years were left when the unwanted incident took place.

Therefore, your family will get a monthly income of Rs. 50,000 for the next 10 years. This amount can thus replace your income and provide for your loved ones’ needs. They can budget their expenses and set aside a sum every month for future needs. Thus, they can even build a corpus through systematic investments over time.

Also, monthly income term insurance plan premiums are usually lower than that what you have to pay for a lump-sum payout.

Your family depends on your income. What if something happens to you? How will they manage?

A term life insurance policy like ICICI Pru iProtect Smart can help replace your income with the life cover amount, in your absence. This is a simple and affordable form of life insurance. It is a must-have for every earning member of the family especially if they have dependents or liabilities.