Monthly income benefit

Dear Mr Tan,

You mentioned in your blog that a decreasing term is suitable as an insurance protection.

While I agree with you, I think it may not be the best solution if the beneficiaries are not financially savvy to handle such a big amount of money. It may be better if they to receive a fixed monthly stipend.

NTUC Income has an Income Benefit rider under the Family Insurance Plan, which pays out a monthly benefit when the life assured dies. Do you think this is an equivalently good financial protection as well?

MY REPLY:

I agree with you that a monthly income benefit is more suitable for dependants who are not able to handle a large lump sum.