Given Indian’s propensity for anything cheap, it is surprising that the uptake of term life insurance plans is low. Life insurance companies too have realised the importance of selling protection to aid growth in profitability. Regular term plan with lumpsum payout:This option is good if the nominee (in most cases wife and children) is financially savvy. Monthly income payoutIn this case, some amount of the cover is paid upfront at the time of the policyholder’s death and the remaining is paid as monthly income. The monthly income could remain the same or it could increase, say by 5-10% every month, depending on inflation.

Source: dna May 23, 2018 00:00 UTC