Firstly a Monthly Income Plan or MIP is a type of scheme that is mainly related to the mutual fund. In this scheme, the person will receive some amount of money each and every month. In the monthly income plan, you will receive the money after the few months of the deposit of your premium. If you are buying this plan, then your 70% to 80% of income will go to the debts funds and the remaining to the stocks.
What are the types ofonline life insurance monthly income plan?
There are two different types of options you can choose in the onlinelife insurance monthly incomeplan. They are:
- MIP Dividend option
This is one of the most important types of the monthly income plan scheme. If you are choosing the dividend option for your monthly income plan, then they will provide you with the money in the dividend form. The dividend fund that will be received by the investors will be tax-free. Before the money is being given to you the mutual fund company will deduct the dividend distribution tax which is around 28%. After that deduction, only the money is given.
- MIP Growth option
This is the second type of option you will get in the life insurance monthly income plan. This plan will not give you payment which is given by the dividend option. You will get your return after you have sold one unit. The payment of the growth option is higher as compared to the Dividend option. This growth option is especially for those people who don’t want the regular income.
What are the advantages of the best monthly income plans?
One of the most important points that should be noted is that if you are investing in the life insurance monthly income policy the duration will be of five years. After the five years, your scheme will be mature and you will get the payments.
The followings are the main advantages of the best life insurance monthly income plans:
- Monthly payment
One of the main advantages of the best life insurance monthly income plan is the monthly payment. They will provide you with the payment on a monthly basis. You don’t have to worry about the payment where you will receive them. Your payments will automatically be transferred to the linked bank account through the Electronic clearing services.
- Provide flexibility in the premium
The life insurance monthly income plan quotes will provide you with the flexibility of the premium. You can pay your premium on the annual, half-yearly or the quarterly basis. You are free to choose when you pay your payment.
- Provide Lump sum money
The monthly income plan will provide the benefits of offering the lump sum money along with your payment at the end of the policy period. This Lump sum amount is an option. So if you want the money then after the maturity period you can ask from the insurance companies. The main reason for offering this type of payment is due to the nature of the daily expenses of the individual’s life. Compare life insurance monthly income plans with other plans so as to choose the benefits of the lump sum amount.