Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,921.50-96.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

What is term insurance with a monthly payout?

Term insurance with a monthly payout is particularly useful for families with limited financial exposure where there is a possibility of the lumpsum amount being mismanaged or squandered away.

ET CONTRIBUTORS|
Updated: Nov 18, 2019, 11.45 AM IST
0Comments
Getty Images
comp
The payout is exempt from tax for the beneficiary.
1. Some term insurance policies offer an option of selecting a monthly payout over a period of time instead of a lumpsum payout in case of death during the term.

2. The monthly amount can be opted as a flat amount or with a percentage increment every year to adjust for inflation.

3. The monthly payout is like a pseudo salary which comes every month for certain years.

4. This payout is exempt from tax for the beneficiary.

5. It is particularly useful for families with limited financial exposure where there is a possibility of the lumpsum amount being mismanaged or squandered away.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service