Monthly Income Life Insurance: A Financial Cushion for Your Loved Ones

A lump sum payout from a life insurance policy might seem enough when planning for your family's financial future. But what if your family needs a steady income to manage household expenses, EMIs, and lifestyle costs? That's where Monthly Income Life Insurance comes in—a plan designed to offer consistent financial support to your loved ones in your absence.

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5.3 Crore Policies Sold

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₹1 Crore Life cover starting from ₹478/month⁺

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What is Monthly Income Life Insurance?

Monthly income life insurance is a type of life insurance plan where, instead of (or along with) a lump sum, your family receives fixed monthly payouts for a defined period after the policyholder's death. It acts like a replacement for your salary, ensuring the day-to-day running of the household doesn't come to a halt.

Key Features of Monthly Income Plans

Regular Payouts

Monthly income life insurance plans offer guaranteed payouts to your nominee for a specific duration, typically 5 to 20 years after your death. This ensures that your family continues to receive a steady income stream, much like a salary.
Steady Cash Flow

These plans help your family manage everyday expenses such as rent, school or college fees, utility bills, groceries, and other monthly commitments. Instead of receiving a one-time lump sum, the money is spread out over time to better support your family's lifestyle.
Inflation Protection

Some monthly income plans come with an in-built feature where the payout amount increases annually, usually by a fixed percentage (5% to 10%). This helps counter the impact of inflation and ensures that the purchasing power of the monthly benefit is maintained over the years.
Flexibility

Policyholders can often customize the payout structure. Many insurers allow you to opt for a combination of a lump sum payment (to take care of immediate financial needs) followed by monthly income payments (to manage regular expenses). Depending on your family's needs, you can choose between only monthly income or a lump sum.
Affordable Premiums

If you choose a term insurance plan with a monthly income option or rider, the premiums are generally lower than investment-linked plans. These options make it affordable for middle-income families to secure a strong financial safety net.

Term Plans

₹1
Crore

Life Cover

@ Starting from ₹ 13/day⁺

₹50
LAKH

Life Cover

@ Starting from ₹ 8/day⁺

₹75
LAKH

Life Cover

@ Starting from ₹ 12/day⁺

Who Should Consider Monthly Income Life Insurance?

Primary Breadwinners: Those with dependents like young children, a non-working spouse, or aging parents.
People with Fixed Monthly Expenses: EMIs, rent, school fees, etc.
Self-Employed Professionals: Whose family relies entirely on their business income.
Older Buyers in their 50s: Who want to ensure a steady income stream for their spouse.

Monthly Income Plans Vs Lump Sum Life Insurance Plans

Feature	Monthly Income Plan	Lump Sum Plan
Payout Style	Monthly + Optional Lump Sum	One-time payout
Ideal For	Regular family expenses	Big one-time liabilities
Risk of Mismanagement	Low	Higher (if not managed well)
Emotional Ease	Feels like a salary	Can be overwhelming

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₹1 CRORE

Term Plan Starting @

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Compare 40+ plans from 15 Insurers

⁺Standard T&C Applied

Wrapping It Up:

Monthly Income Life Insurance is more than a policy; it's a long-term financial lifeline for your loved ones. Ensuring a consistent cash flow brings stability during emotionally and financially challenging times.

If you're the key earning member in your family, this type of plan could be the smartest way to protect your family's lifestyle, even when you're not around.

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˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Rs. 400/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 400/month (Rs.13/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.679/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

Women

+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.

1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

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