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Can 'income protection' term insurance policies bolster your loved ones’ safety net?

Money Control · 2m

- Some life insurance companies are offering 'income protection' term insurance policies to address the financial setback that occurs when a breadwinner dies. - These policies provide regular income payments instead of a lump-sum payout, ensuring that the family continues to receive a steady stream of income to cover living expenses and meet financial needs. - The income protection plans also come with an inflation-adjusted feature, which increases the payout at a compound rate of 5% annually, helping to keep pace with rising costs over time. - Some policies offer specific add-ons to support aging parents, providing a monthly income to them while a lump sum is paid to the nominee upon the policyholder's death. - These plans offer tax benefits similar to regular term plans and can be a more effective way for families to manage their finances and maintain their standard of living without major adjustments.