Top 5 Benefits of Monthly Income Plan

by Abhishek K. Digital Business Executive

Vacations, weekend plans, festivals, family functions give us occasions to rejoice with our family. At the same time, we must go through jobs, careers, business hours to earn money for our family's financial needs. While trying to meet expenses and deal with the daily crunch of life, it is difficult to enjoy these special moments because you are busy worrying about how much they will cost you financially. However, there is so much joy in those little moments. It takes time to understand that what you considered little was not little at all.

An additional source of income that you can bank on could make all the difference. What we do is basically invest primarily in equity securities with a necessity of generating cash flows and saving capital. A smart insurance decision today could make your life in the future stress-free. A monthly income savings plan is an insurance choice that future-you will be thankful for.

A Monthly Income Insurance plan is one that provides an assured income benefit to you. A plan best suited for retirees who seek a steady income instead of capital gains. It acts as a steady source of income for those individuals who want to create an alternate source of monthly income. Monthly Income Insurance Plan ensures that you are not hard pressed to meet your commitments in future and your family remains financially secure.

Alternately called Super Income plan is specially designed to secure your long-term financial needs and that of your family. The best of 5 of this plan are Guaranteed Income, Maturity lumpsum Benefit or Survival Benefit, Death Benefit and Accidental Death benefit. The greatest is giving you protection and a Guaranteed Income till 75 years of age. In addition, the next biggest benefit is the additional pay out of lumpsum on maturity, which is ideally the maturity sum assured. This making it the key benefit, which is Maturity Benefit or commonly known as The Survival Benefit of the Monthly Income Insurance Plan.

The monthly income begins at the end of the premium term, a regular pay out option per month and the insured individual does not have to worry whether they will receive the amount due to them every month. The payment is generally made in the form of direct bank deposit through the Electronic Clearing Service (ECS) option offered by all banks. This payment is made to the designated account of the policyholder.

The reason insurance companies offer the lumpsum maturity benefit payment as a onetime amount because of the very nature of expenses in a normal individual’s life. Even though, a monthly income scheme helps the insured to get regular payments that they can use for their normal living expenses, they need a larger sum at the time of retirement. This sum helps them to meet larger expenses such as renovating their house in their hometown before they move in, buying a house (if required), relocation expenses, and all other costs that crop up immediately after retirement. So, this is not just to ensure your financial stability after 75 years but also to help you face the uncertainties of your future income and liabilities. Overall, it will make you comfortable to live even after retirement.

The additional benefits of this monthly income insurance plan are The Death Benefit or Death Sum Assured your family receives. In case of your death during the policy term, the nominee or beneficiary will receive the death benefit, which is an amount equal to higher of Death Sum Assured or Surrender Benefit, as applicable on the date of the death. This amount is paid as a lump sum to the nominee or beneficiary. Adding more value to the list of benefits, the death benefit on your untimely death, which is paid in lumpsum to your beneficiary or nominee. You are also eligible for Tax Benefit where you get certain deductions on your premiums and on proceeds from the policy benefits.

To enhance your protection against unfortunate incident, you can add the Riders Plan. The riders plan can be added at the inception of the policy or subsequently on any of the policy anniversaries. In case of death the sum assured during the rider term will be paid to the nominee or beneficiary.

A monthly income plan is ideal for people looking for an investment pay out option after they retire and which secures them a guaranteed monthly income, and an insurance cover at the same time. The fact that monthly income insurance plans do not erode the capital, it makes them a good choice for conservative people looking for capital protection, rather than capital growth. The monthly income plan ensures you have a risk-free monthly investment plan that comes in every month like clockwork without you having to worry about the market performance or having to keep a tab on the returns of your investments.