Online Plans

Make Your Online Term Plan Your Family’s Monthly Pay Cheque

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Make Your Online Term Plan Your Family’s Monthly Pay Cheque

Ping! There are few sounds sweeter than the smartphone message ringtone on the first of every month, informing you about the credit of your pay in your bank account. That one sound is followed by a frenzy of activities in your family be it buying groceries, paying bills, dining out or your investments.

Now, imagine a situation when the ping doesn’t happen in the event of your untimely demise. How will your family cope with the situation? It is here that flexible and smart online term plans can help. To know more, just read on.

Regular income even in your absence

Smart and flexible online term plans not only provide high life insurance coverage at very affordable premiums but also can provide regular income to your family in your absence. They could also provide a combination of lump sum and regular income for long periods, such as 15 years.

The regular income provisions can come especially handy in case of families where the policyholder is the only person managing family finances.

Such families typically struggle to strike a balance between smartly re-investing the lump sum life insurance benefits and spending the right amounts.

In the variant of lump sum and monthly income, the lump sum helps the family stabilise the financial situation by repaying large outstanding payments like loans. The regular income then replaces the regular pay cheque. Here, you need to find out whether you get the choice of constant regular income for the period, or an increasing regular income at a pre-specified rate over a certain period.

The rising monthly income option can be quite handy if the period of regular income is a long one. Remember, during long periods of time, inflation takes a toll on regular income. Here’s an example.

If your family’s monthly living expense rose from Rs 20,000 in 2007 to Rs 40,000 in 2017*, a regular income of Rs 20,000 that the family used to get in 2007, would be of little help today.

Think about it. How assuring it would be for you and your family to know that the mobile phone message will keep ringing on the first of every month when bank credits the regular income, even in your absence. And to think of it, all it needs is a few clicks of your mouse.

  •  Cost Inflation Index for FY 2007-08 = 551, for FY 2016-17 = 1125

Key Message

You can lend a helping hand to your family with online term plans that let you choose between or combine lump sum and regular income options of life insurance payment.

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