It provides a steady stream of income in the form of dividends and interest payments. Monthly income plans are more prevalent in the mutual fund industry space, and these types of plans are also called as monthly guaranteed income plans, monthly pension plans, or assured monthly income plans in the life insurance industry.
The proportion of investments in equity funds is low, but it offers the benefit of higher returns in addition to the stability offered by the debt proportion. Monthly Income Plans (MIPs) are debt-oriented hybrid mutual funds that offer a regular monthly income to the investor. On the other hand, monthly income plans (MIP) can support your financial needs along with your family’s while you are alive. Term plans often work in extreme conditions and most of their benefits are directed toward your family member’s survival. Investors usually rely on the term insurance to look after their financial needs after disability or other such mishaps. Various types of monthly income plans can become your source of income if your regular source of income suffered a setback due to some mishap. Monthly income plans can provide you with an alternative stream of income.
