Written by : Knowledge Centre Team
2026-02-19
1189 Views
8 minutes read
Share
In today's world, everybody seeks security and stability in life; to be financially secure and stable. To live the life of your dreams, you not just need financial backing but also a steady income for the future endeavours. As you grow in the journey of life, you might find yourself in a position where you are no longer financially independent or have a monthly income source. That's when retirement hits you; you are either dependent on your children or on your savings (if any) provided that you had planned it well.
Working individuals should understand the importance of saving money and investing when they still have a job and monthly pay. Yes, not just saving but also investing in good saving plans. As they say, "Don't work for money, let the money work for you." And that's exactly what you want when you retire. One of the best plans anyone can opt for is the "Monthly Income Plan", where you can expect fixed monthly income, over a very long period which can be up to 25yrs. Seems too good to be true!
What are the Types of Monthly Income Plan?
Essentially, there are two types of Monthly Income Plans:
- Dividend Based Monthly Income Plan: These plans provide the investors monthly payouts made out of dividends. The dividends received by the investors are tax-free.
Also Read - Dividend Distribution Tax (DDT)
- Growth Based Monthly Income Plan: If you opt for this option, you'll not receive any monthly or periodic payments. When you redeem the units, you get paid along with the capitals. Although this Monthly Income Plan does not give you a steady inflow of monthly payout, it results in wealth creation.
Monthly Income Plan: How does it Work?
The investor or the policyholder pays the premium regularly as per the premium paying term. At the end of the term, if the investor survives, they get a regular monthly payout till the end of the policy tenure as mentioned in the policy (where the policy tenure is longer the premium payment term). When the policy tenure terminates, the investor gets some bonus, and with the payout of these bonuses, the Monthly Income Plan ends.
Whereas, if the policyholder dies during the tenure, his/her nominee will be entitled to get the monthly payouts and the premiums paid by the investor until death. As usual, the tenure terminates giving bonuses to the nominee.
Why should you Buy a Monthly Income Plan?
When we talk about savings, the majority of people think of term insurances. Term insurance plans never really gives you the stability you seek. Term Insurance only works in case of death or disability where the amount usually gets exhausted due to immediate expenses leaving little to no funds for the future.
Whereas a Monthly Income Plan is a debt-oriented mutual fund which enables the investors to receive monthly payouts. It is a mutual fund where the investment goes to the equity and debt market in a ratio of 20:80 or other similar proportions. This investment avenue guarantees monthly income after retirement with minimal risk designed to avail financial stability in your old days.
Also Read - Best Saving Plan in India
Who should Buy a Monthly Income Plan?
Monthly Income Plans (MIP) are for risk-averse investors those who are willing to take the minimum risk possible. MIP's are best suited to retired persons or those who are soon going to retire and are willing to invest somewhere safe.
A Monthly Income Plan is for those who want to have a backup for their regular income or simply looking for a guaranteed monthly income after retirement.
How to Find the Best Monthly Income Plan that Guarantees Good Returns?
Not all Monthly Income plans (MIP) are the same. And with the market flooded with a plethora of MIPs to choose from it can be a little intimidating to pick one. The best monthly income plan will have the right combination of risk and returns suited to your needs and desires.
Given are our top picks to look for while deciding a Monthly Income Plan or MIP for yourself or your family members:
- Financial Goals: Firstly, you need to figure out, why are you choosing the Monthly Income Plan for investment? Meaning what are your reasons for choosing so, or what are your expectations or needs that you need to fulfil via this plan. What is the duration in which you want to achieve it? Have these things clear inside your mind. This is the very first step to choose the right MIP.
- Risk Appetite: Although MIPs are well-known for their minimal risk, usually 70% or more in the debt funds and rest in stock, there can be plans with varying proportions and risk. If you are not willing to take too much risk, you can invest in a scheme with an equity component of 10 per cent. For high-risk takers, they can go for an equity component of 25- 30% accordingly.
- MIP's Performance: Before selecting any Monthly Income Plan, it is essential to check their past returns over several years. It would be best if you choose a life insurance plan that has shown promising growth and steady performance over the past years in the bull and bear phases.
- Maturity Profile: Maturity profile is the term for which you will invest in the scheme till it matures and starts providing monthly returns. Please consider this point because bonds of longer tenure may involve bigger interest risks. And it also depends on you for how long you want to invest in the scheme.
- Expense Proportion: The expense proportion or ratio is the amount charged by these funds to run your investment. The best plans for you could be those that have a low expense ratio. The plans with higher expense ratios will catch up on your returns.
Besides these, there are tons of other benefits and perks. Leave a legacy behind by choosing one of the most trusted plans out, the Smart Monthly Income Plan by Canara HSBC Life Insurance.
Build Guaranteed Savings for Your Future Goals
Enter OTP
An OTP has been sent to your mobile number
Didn’t receive OTP?
Application Status
Name
Date of Birth
Plan Name
Status
Unclaimed Amount of the Policyholder as on
Name of the policy holder
Policy No.
Address of the Policyholder as per records
Unclaimed Amount
Sorry ! No records Found
Request Registered
Thank You for submitting the response, will get back with you.
Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
Recent Blogs
What Is Sum Assured in Insurance? Meaning & Benefits
30 July '26
4231 Views
8 minute read
A sum assured is a fixed amount paid to the nominee of the insurance policy in the unfortunate event of the policyholder's demise during the policy tenure. Learn more about what is sum assured, and it's meaning.
Read More
Saving Plan
Top Investments with Guaranteed Returns in India in 2026
30 July '26
1991 Views
8 minute read
Discover top investment options in India with guaranteed returns. Secure your financial future with reliable plans from Canara HSBC Life Insurance. Explore now!
Read More
Saving Plan
Why Life Insurance Should Be a Key Part of Your Savings Plan?
30 July '26
1106 Views
9 minute read
Buying a life insurance cum savings plan helps secure your future. Get life cover and build wealth to fulfill your kids’ dreams or create a strong retirement corpus.
Read More
Saving Plan
Kisan Vikas Patra (KVP): Benefits, Interest Rate & Features
30 July '26
5724 Views
11 minute read
Explore Kisan Vikas Patra (KVP) scheme benefits, interest rates, eligibility and key features to understand how this government-backed savings scheme works.
Read More
Saving Plan
What Are the Benefits of Saving Plans With Guaranteed Income?
30 July '26
1014 Views
8 minute read
Learn six practical benefits of saving plans with guaranteed income, including steady payouts, financial security, low risk, flexibility, tax efficiency, and retirement comfort.
Read More
Saving Plan
Goals to Set this Independence Day for Financial Independence
30 July '26
1893 Views
5 minute read
5 financial goals that will pave the way for your financial independence. Learn how can you achieve financial freedom for gaining benefits in the long run.
Read More
Saving Plan
Are Savings Plans a Smart Investment for Your Financial Goals?
30 July '26
1374 Views
11 minute read
Savings plans secure your future and meet unique financial needs. Find out if choosing the best savings plan can help you achieve better results.
Read More
Saving Plan
Senior Citizen Savings Scheme (SCSS): Benefits & Eligibility
30 July '26
5631 Views
10 minute read
Learn what the Senior Citizen Savings Scheme (SCSS) is, how it works, interest rates, eligibility rules and why it is a popular low-risk option for retirees.
Read More
Saving Plan
Public Provident Fund (PPF): Full Form, Scheme & its Benefits
30 July '26
2146 Views
12 minute read
The Public Provident Fund (PPF) scheme is a long-term savings scheme with interest rates and guaranteed returns. Understand the meaning of PPF account, scheme, and interest rate.
Read More
Saving Plan
Savings and Investment Plans from Canara HSBC Life Insurance
We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.
Fixed Returns, Zero Risks & Worries
iSelect Guaranteed Future Plus
- 4 Plan Options
- Life cover + Guaranteed benefits
- Accidental death benefit
- Premium protection cover
Save, Dream, Plan. Live Peacefully
iSelect Guaranteed Future Plan
- 4 plan options
- Guaranteed Maturity Benefit
- Premium Protection Cover
- Tax Benefits
Popular Searches
- Senior Citizen Saving Scheme
- Post Office Savings Scheme
- What is Sum Assured?
- Money Saving Tips
- Saving Plans for Child
- Endowment Policy
- iSelect Guaranteed Future Plus Plan
- National Savings Certificate
- Tax Saving Plans
- Senior Citizen Savings Scheme Calculator
- NPS and PPF
- Savings & Investment Plans
- Saving Schemes
- Save Money For Salaried Professionals
- One time Investment Plan for Child
- Investment Options for an NRI
- All About PPF
- Sum Assured
- Policy Surrender Value
- Guaranteed Savings Plan