Term Plan is a necessity given the uncertainities that one has to face in life but though the term plan if taken in sufficient amount can come as a rescue to meet exigencies with lump sum amount. You can supplement it with a income replacement benefit rider that can prove to be a source of regular cash flows.
It is all the more necessary in case only one member of the family happens to support the family financially.
Let us understand this with an example,
Say, a person X who has dependents as wife and two children has taken a term plan of Rs. 1 crore, what is this pay out is spent in just few years time and the family is then left with no financial help.
So, as an additional source of income instead of the lump sum pay out you also have the option to top it up with increasing income source over a longer term to provide a extra shield of financial fortunes for the family.
A gamut of such plans are on offer by the insurers and you can choose part payment both as on a lump sum basis and increasing payment stream as regular cash flows.