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A monthly income term plan is a form of a pure term insurance plan where in case of policyholder’s death, the nominee gets the life cover amount in the form of a monthly income for a fixed period of time.
Under ICICI Pru iProtect Smart, there are 2 kinds of monthly income plans:

1. Regular Monthly Income plan: Your term life cover will be paid to your nominee as a monthly installment for a period of 10 years/20 years/30 years (chosen at inception). This option is ideal for those who want to ensure that the burden of outstanding liabilities and monthly household expenses does not befall their loved ones while also paying affordable premiums.
2. Increasing Income Plan: Your term life cover is paid out to the nominee in the form of a monthly income, which increases by 10% every year for 10 years. It has been designed to keep in mind that the financial needs of the family will keep increasing due to inflation, and they should be able to manage these without any burden.
3. Lump-sum + Monthly Income Plan: You can choose for your family to receive the life cover payout in 2 parts. In case of death of the policyholder, your family will get one installment as a lumpsum payout immediately and the rest in the form of monthly income for a period of 10 years/20 years/30 years (chosen at inception). This will ensure that the life cover amount can help the family with immediate needs (lumpsum) like loans as well as take care of day-to-day expenses (monthly income).

A monthly income term plan is one of the most affordable ways to secure your loved ones financially. The earlier you purchase this plan the better it is as the premiums will keep rising as you get older. At a young age we take up a lot of liabilities but these liabilities need to be protected with the safety net of a life cover in case of unpredictable situations like death. Also as your age increases you will be more susceptible to illnesses and hence the probability of getting a term plan would significantly reduce.
Below are some of the primary factors which can act as important levers for you to purchase a monthly income plan:

1. Family protection: If you are the main provider for your family and want to ensure their financial security, a monthly income payout term insurance policy can help. It replaces your income and covers essential living expenses like home loan EMIs, electricity, gas bills, your child’s school fees, and day-to-day expenses.
2. Reducing the burden of debts: If you have taken loans and are paying huge EMIs every month, your main objective would be to disburse the EMIs and close your loan as soon as you can. But in case of an unfortunate event like death, you would not want to burden your loved ones with the mounting EMIs; this is when a monthly income payout of a life cover will ensure your EMIs are paid even in your absence and your family can manage their expenses smartly.
3. Income replacement: If you have dependent parents, a spouse, or children, your income is something that helps in running the household expenses. A monthly payout of life cover will ensure that a regular stream of income keeps flowing into the household, so that your loved ones never have to compromise on their needs.
4. Peace of mind: If you want the assurance that your loved ones will be financially protected if something happens to you, purchasing a monthly income payout term insurance policy can give you peace of mind. It ensures that your family will have the necessary financial support during difficult times.

1. If you are the main earner in your family and want to make sure your loved ones are financially supported even in your absence, a monthly income term insurance policy can give them a regular income to cover their expenses.
2. Young parents often prefer a monthly income term insurance to secure their children's financial future, in their absence. This policy can help cover basic childcare expenses, education fees, and other important needs until the children are financially independent.
3. If you have huge liabilities like a home loan or an education loan, a monthly income term insurance policy can make sure your loved ones don't have to deal with those debts when you are not around.
4. If you have aging parents who rely on your income, then a monthly income term insurance policy can provide them with money to help them after you're gone.

While it’s recommended that the life cover be 10 to 15 times your annual income, you also need to take into account your current expenses and the impact that inflation would have on your future expenses. If you are the sole breadwinner, you have dependent family members whom you need to always protect financially. Also, if you take a home loan or an education loan for your child, you need to ensure that, in case something happens to you, your family should not be burdened by loan EMIs. All these factors should be considered when choosing the ideal life cover amount. New age term insurance plans also give one the flexibility to decide how they want their loved ones to receive the life cover payout as a lumpsum, in the form of a monthly income or a combination of both.

With the limited pay option, you can pay premiums for a specific pre-agreed period of time (5, 7, 10 or 15 years) and enjoy the term insurance cover for the whole policy duration, irrespective of the premium payment period. You can save up to 65%^** over the entire policy duration with this option

Before choosing the ideal payout option, you need to thoroughly evaluate your current lifestyle and the reality of your dependent family members. This will give you fair idea as to how the life cover amount needs to be paid out to your family which will not only take care of their financial needs but also ensure that they are able to manage huge sum of money (the life cover amount) without any hassle in your absence.

1. Monthly Income : Your term life cover will be paid to your nominee as a monthly installment for a period of 10 years/20 years/30 years (chosen at inception). This option is ideal for those who want to ensure that the burden of outstanding liabilities and monthly household expenses does not befall their loved ones while also paying affordable premiums.
2. Increasing Monthly Income : Your term life cover is paid out to the nominee in the form of a monthly income, which increases by 10% every year for 10 years. It has been designed to keep in mind that the financial needs of the family will keep increasing due to inflation, and they should be able to manage these without any burden.
3. Lump-sum : Your entire term life cover amount is paid to your nominee in one go. This is the most preferred option for our online buyers. It can help your family possibly close the pending home loan EMIs. They can also use the huge sum of money (life cover amount) to further invest it in instruments that will ensure needs like sending children abroad for higher education, is taken care of, as such an amount invested as principal and can reap high returns thus fulfilling all your family’s dreams even in your absence.
4. Lump-sum + Monthly Income : You can choose for your family to receive the life cover payout in 2 parts. In case of death of the policyholder, your family will get one installment as a lumpsum payout immediately and the rest in the form of monthly income for a period of 10 years/20 years/30 years (chosen at inception). This will ensure that the life cover amount can help the family with immediate needs (lumpsum) like loans as well as take care of day-to-day expenses (monthly income).