Once the policy reaches maturity, the policyholder will start receiving guaranteed payouts similar to the monthly income earned by the policyholder.
The payout amount will depend on the insurance coverage that the policyholder chooses, the premium amount they pay and the sum assured on the plan.
Therefore, the policy term includes the period for which the policyholder must pay the premium and the period for which the policyholder gets the payout.
During our active years, many of us are planning to retire, and we are planning how and when we can have a good time with our family and still be financially stable.
Many people want to save money every month in their old age so they can look forward to their golden years.
It is also important that income does not come from volatile sources, such as investments in a stock market.