Monthly Income Benefit Plan for Nominee

When someone buys term insurance, the idea is to protect the family financially if something happens to the policyholder by offering them a one-time lump sum benefit. But many families require monthly income rather than one time benefit. They can use this benefit to take care of their monthly expenses, EMIs, school fees, groceries, medical bills, and everyday needs. Instead of leaving the family to manage without steady cash flow, the plan helps replace the policyholder's income in his absence.

51 Partners Insurance Partners

12.02 Crore Registered Consumer

5.9 Crore Policies Sold

We are rated ++ rating

₹1 Crore Life cover starting from ⁺

Lowest Price Guarantee ^˜

Male

Female

Name

Date of Birth

Mobile Number

Check Your Premium Now

Get Updates on WhatsApp

What Is a Monthly Income Benefit in Term Insurance?

A monthly income benefit is a feature of a term life insurance policy that pays the nominee a set amount every month for a fixed period of time in case of the policyholder's untimely death. The insurance company pays the family in a regular payout, like how a salary comes in each month. This way, the family doesn't have to deal with a large sum all at once. Thus, makes it easier to plan your finances every day during a hard time.

Feature	How It Helps the Nominee
Payout style	Money is paid monthly instead of one-time
Duration	Income continues for 10, 15, 20 years or more
Budgeting	Easier to manage rent, EMIs and household bills
Stability	Reduces risk of misusing or exhausting funds early
Support	Keeps daily life running smoothly

Some term life insurance plans also give you a small lump sum and a monthly income. This helps the nominee pay for things right away and gives them steady financial help over time. You can use the lump sum for things that need to be done right away, and the monthly income helps keep the household's cash flow steady.

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⁺

Why Nominees Prefer Monthly Income Over a Lump Sum?

A lump sum payment may seem easy, but it's not always easy to handle a lot of money at once. Families often don't know where to put their money, how much to spend, or how long it should last. It's hard to budget when you don't have a steady income. This pressure is reduced by monthly income, which provides reliable financial support. The nominee gets money at regular intervals instead of all at once. This makes it easier to plan expenses and manage daily finances in a way that is familiar.

Salary-like support: The nominee gets money on a regular basis, just like the policyholder did every month, which helps keep their finances stable.
Expense continuity: Home loan EMIs, rent, school fees, and utilities stay within reach.
Lower financial stress: The family doesn't have to save money right away to protect their future.
Controlled spending: Limited payout every month allows the family to meet their important needs and reduce overspending.
Emotional comfort: Predictable income helps families focus on healing, not panic.

Secure Your Family Future Today

₹1 CRORE

Term Plan Starting @

Get an online discount of upto 15%^#

Compare 40+ plans from 15 Insurers

⁺Standard T&C Applied

How Term Insurance Offers Monthly Income for Nominees?

Term insurance does not just pay once. Many plans allow you to choose income replacement options at the time of purchase. Different insurers offer different combinations, but the goal stays the same: replace the policyholder’s earnings. Let’s look at the main term insurance payout formats.

What are the Common Income Payout options?

Monthly income: Nominee receives only monthly payments for a fixed period.
Lump sum + income: A part is paid immediately, followed by monthly payouts.
Increasing income: Monthly payout increases every year to help the beneficiary against inflation.

Who Should Choose a Monthly Income Benefit Plan?

This type of benefit payment arrangement is good when the family is largely dependent on only one income.

Young children: Education and daily costs need steady funding.
Home loans: EMIs must be paid regularly without any disruption.
Single-income households: The nominee needs regular replacement of salary.
Non-working spouses: Monthly income supports household management.
Ageing parents: Medical and living costs stay covered.

What are the Benefits of Monthly Income Benefit for Nominee?

Here are the benefits of a monthly income benefit for nominee:

Income continuity: The nominee receives a monthly cash flow similar to a salary.
Loan safety: EMIs and liabilities remain taken care of.
Budget discipline: Monthly payouts prevent reckless one-time spending.
Emotional relief: Families can focus on stability instead of financial panic.
Future planning: Children’s education and lifestyle goals stay on track.

What is the Difference Between Monthly Income vs Lump Sum Payout?

Many buyers struggle to choose between income and lump sum. A quick comparison helps.

Aspect	Monthly Income	Lump Sum
Usage	Used gradually	Used all at once
Budgeting	Easier to manage	Needs careful planning
Risk	Lower risk of misuse	Higher risk if invested poorly
Stability	Salary-like support	Requires discipline
Stress	Less financial pressure	More responsibility on nominee

How to Choose the Right Monthly Income Plan for Nominees?

Here is how you can choose the right monthly income plan for your nominees in your absence:

Income amount: Make sure that the monthly income is equal or more than your current monthly income.
Payout duration: Select the cover term long enough to cover your children’s education and loans.
Inflation protection: Choose income replacement term plans where income increases annually.
Combination option: You can opt for a lump sum + monthly income benefit payout if you want to secure family against loans and replace your monthly salary.
Easy Claim Process: Make sure that your nominee can receive money easily.

Can You Add Monthly Income Benefit Later?

Most insurers ask you to choose the payout style while buying the policy. Changing it later may not always be allowed.

That’s why it is better to decide early whether your nominee needs:

regular monthly support,
a one-time amount, or
a mix of both.

Final Thought!

A monthly income benefit plan for the nominee makes term insurance into real-life income replacement. Instead of giving the family a lot of money and hoping they can handle it well, you set up a steady, reliable flow of money that helps them live their lives. This method keeps life organized, expenses predictable, and finances safe, even when things don't go as planned, for families that only have one person who works.

People also search for

What is Term Life Insurance

Different types of Plans

Term Insurance

View Plans

Life Insurance

View Plans

List of Term Insurance Companies

View Plans

TROP

View Plans

Term Insurance For Senior Citizen

View Plans

Term Insurance For Spouse

View Plans

Term Insurance For Family

View Plans

Term Insurance For NRI

View Plans

List of Term Insurance Plan

View Plans

Life Insurance Corporation of India

View Plans

What is Term Insurance?

View Plans

Term Insurance Calculator

View Plans

1 Crore Term Insurance

View Plans

2 Crore Term Insurance

View Plans

Explore the popular searches and stay informed

˜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. ₹360/month is the starting price for a ₹99 lakhs loan cover with an 8% interest rate for an 18-year-old male, non-smoker, with no pre-existing diseases, loan tenure up to 20 years, rounded off to the nearest 10

+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.

˜ Policybazaar Promise reflects the guarantee offered by insurers. Price assurance is based on certifications shared by insurers with us.