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Make Your Online Term Plan Your Family’s Monthly Pay Cheque


In the landscape of financial planning, safeguarding the future of one’s family is paramount. Amidst the complexities of life, an unforeseen event can disrupt the financial stability of a household. This is where a term insurance plan becomes not just a safety net but a potential replacement for a lost monthly pay cheque. Think of it as ensuring your family continues to receive a financial sum monthly, just like a salary, even in your absence. For a vast majority in India, where family is the nucleus of life, understanding and embracing an online term plan is a step towards securing their loved ones’ financial independence and continuity.

Understanding Online Term Plans

An online term plan is a life insurance policy that offers coverage for a specified term or period. What is a term plan, you might ask? It’s essentially a type of life insurance policy that provides coverage at a fixed rate of premium for a limited period of time. After the period expires, coverage is no longer guaranteed, and the policyholder must either forgo coverage or potentially obtain further coverage with different premiums or conditions. If the insured dies during the term, the death benefit will be paid to the beneficiary. Here’s what makes term plans a prudent choice:

  • Cost-Effective: Term plans are generally more affordable compared to other life insurance products, making them accessible to a broader audience.
  • Simplicity: Purchasing a term plan online simplifies the process, cutting through the hassle of paperwork.
  • Flexibility: Many online term plans come with adjustable coverage options, allowing you to tailor the policy as per your family’s needs.

How an Online Term Plan Can Replace the Monthly Pay Cheque

When the breadwinner’s income stops, it can leave a family in a financial bind. An online term plan can mitigate this risk by:

  • Monthly Income Payout Option: Some term plans offer a monthly income payout option, which can function like a salary, helping your family meet monthly expenses without disruption. This option is akin to a regular salary and is particularly beneficial for families who may find managing large sums of money challenging.
  • Lump-Sum Payout: A term plan can also provide a lump-sum amount, which can be invested to generate a monthly income, creating a financial cushion. This is beneficial for meeting big-ticket expenses or investing in avenues that can offer returns to support your family’s needs in the long run.

Why Should You Purchase a Term Plan with Monthly Income?

Purchasing a term plan with a monthly income feature is akin to building a financial bridge that ensures the smooth transition of your family’s life, even in your absence. Here’s why you should consider this strategic move:

  • Reliable Income Stream: A term plan with a monthly income benefit transforms insurance from a mere safety net into a reliable source of income. It ensures that your family’s lifestyle is not drastically altered and that they continue to enjoy financial stability just as they did when you were there.
  • Acts as an Income Replacement: The monthly income from a term plan serves as an effective replacement for your salary, covering essential and discretionary expenses without requiring your family to dip into savings or seek other income sources.
  • Education and Lifestyle Continuation: Whether it’s the school fees for your children or the regular lifestyle expenses, a monthly income ensures that these crucial aspects of life are not compromised. Your children’s education can continue unhindered, and the standard of living you worked hard to provide can be maintained.
  • Averts the Need for Immediate Liquidation: Having a monthly income means your family won’t have to make hasty decisions about selling assets or liquidating investments, which may not be favourable if done in distress or at a suboptimal market time.
  • Supports Long-Term Goals: Even in your absence, long-term goals like your children’s higher education, marriage, or your spouse’s retirement can still be on track with the monthly income from the term plan.

Comparing and Choosing the Right Online Term Plan

With numerous options available, selecting the right plan can be daunting. Here’s what to look for:

  • Claim Settlement Ratio: This indicates the percentage of claims the insurer has paid out. Higher ratios are indicative of a reliable company.
  • Policy Terms: Look for policies that offer flexibility in terms of payment options and term durations.
  • Additional Riders: Opt for additional covers like critical illness rider, accidental death benefit rider, waiver of premium rider, etc. for comprehensive protection.

Understanding the Fine Print

Before purchasing an online term plan, it is crucial to understand the terms and conditions. Pay attention to:

  • Exclusions: Certain causes of death, like suicide within the first year, may not be covered.
  • Policy Renewal and Conversion: Check the options for renewal and if you can convert the term plan into another policy type.
  • Premium Changes: Understand under what circumstances premiums can be increased.


Making your online term plan a substitute for your family’s monthly pay cheque is an act of foresight and responsibility. It’s about crafting a financial continuity plan that assures you that your family’s day-to-day needs and aspirations will be taken care of, even in your absence. This monthly financial provision stands as more than just a monetary arrangement; it’s the preservation of normalcy, the assurance of stability, and the fulfilment of the promises you’ve made.

In summary, as you embark on this journey of financial prudence, consider the term plan as an essential element in your financial toolkit. With its affordable premiums, flexibility, and the peace of mind it offers, an online term plan is a wise investment in your family’s future well-being.

Take the step today to safeguard tomorrow – because when it comes to family, every step counts.