term insurance and dies at age 35, the family will continue to receive monthly payouts for the remaining 35 years of the policy term. However, even if only a few years remain in the policy term, the plan guarantees at least 10 years of monthly payouts. So, even if the policyholder dies at 65, with only five years left in the term, the family will receive monthly payments for the next 10 years.
“We observed that people who receive the death benefit prefer to be quiet about it due to risk of fraud. They don't disclose it to their relatives also. This makes it difficult for them to get correct advice about how to manage the lump-sum death benefit," explains Rhishabh Garg, head, Term Insurance BU, Policybazaar.com.
"The amount may get exhausted much before it should be. Even well-educated nominees may not be financially literate to manage it for it to last longer. This plan can help such families.
Take it if your beneficiaries are not financially savvy," he adds. The Income Suraksha Plan offers two payout options: Fixed monthly income Inflation-adjusted income (at a higher premium). For example, a 35-year-old male selecting a monthly income of ₹1 lakh with a policy term and premium payment term of 30 years would pay an annual premium of ₹20,760.
The sum insured would be 120 times the monthly income, equating to ₹1.2 crore. Opting for the inflation-adjusted income option would increase the premium to ₹30,000 annually. Notably, the income payouts are tax-free.
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