Maturity benefits refers to the amount received by a policyholder or nominee when a policy matures. A tem insurance policy needs to be active or in force to avail these maturity benefits. Term life insurance policies may include the followings as maturity benefits:
- The basic sum assured.
- Accrued guaranteed additions and vested simple reversionary bonuses (if any).
- Terminal bonus (if applicable).
Term Insurance With Maturity Benefit India
The term life insurance plans with maturity benefits are slightly different form the traditional life insurance plans. Normally, a traditional term insurance policy does not offer any direct maturity benefits to the policyholder. They only provide death benefits when a policyholder dies within the policy term.
So, if any buyer/policyholder wants to have maturity benefit, he/she can opt for a TROP (Term Return of Premium) plan. A term return of premium plan provides income replacement and refund the premiums at maturity, apart from offering all benefits of a traditional term life insurance plan. A TROP plan is a variant of pure term insurance plan and ensures maturity benefits, if the policyholder survives till the end of policy tenure.
Key Features of Term Plans With Maturity Benefit
The term life insurance plans with maturity benefits or term return of premium plans come with a lot of attractive features. Listed below are the key features of term life insurance plans with maturity benefits:
| Free-look period | 15 days for manually purchased policy
30 days for policies purchased online. |
| Entry Age | Minimum entry age:18 years
Maximum entry age: 65 years |
| Grace period | 15 to 30 days based upon policy modes. Usually, 15 days for monthly mode policies and 30 days for other modes. |
| Plan type | Term insurance plans offers flexibility in terms of choosing a plan. One can choose a plan on single life basis or joint life basis. |
| Premium paying term | Single pay, Limited pay and Regular pay. |
| Age at maturity | 25 year/ 65 years/ 75 years to whole life. Differ from policy to policy. |
| Policy revival | The policy can revived within two years from the date of unpaid premium. |
| Premiums | Based on sum assured and age of the applicant. |
| Nomination | Term life insurance policies with maturity benefits accept nomination. |
| Premium paying frequency | Yearly/ monthly. |
| Sum Assured | Vary from policy to policy offered by various life insurance companies. |
| Policy coverage | Death benefits and maturity benefits. |
| Policy term | Minimum- 5 years
Maximum – 30-35 years |
Benefits of Term Insurance With Maturity Benefit
The term life insurance plans with maturity benefits offer a number of attractive benefits which include:
- Death Benefits: Term insurance plans offer death benefits to designated nominees. The nominees will receive these death benefits, if the life assured dies within the policy tenure.
- Maturity Benefits: Normally, traditional life insurance policies don’t offer maturity benefits. But term return of premium life insurance policies offer maturity benefits by returning the total amount of premiums paid so far, provided a policy is continued till the end of term.
- Tax Benefits: A policyholder can enjoy tax benefits over the premiums paid for term life insurance plans with maturity benefits. The premiums paid and the amount received are exempted from income tax assessment under section 80C and 10 (10D) of the Indian Income Tax Act, 1961.
- Term life insurance plans with maturity benefits also offer additional riders such as Critical Illness and Accidental Death or Disability riders.
- Term life insurance plans come at affordable premiums rates.
Top 5 Term Insurance Plans With Maturity Benefit India
Listed below are some of the term life insurance plans in India that come with maturity benefits.
- LIC Jeevan Pramukh: This is an Endowment Assurance term life insurance plan offered by Life Insurance Corporation of India. The plan provides financial protection against death throughout the policy term and provides maturity benefits, provided the policyholder holder survives till end of policy term. The policy would pay the sum assured accompanied by accrued guaranteed additions, vested simple reversionary bonuses and terminal Bonus( if any) in a lump-sum as maturity benefits.
- MetLife Suraksha TROP: It is a non-participating term life insurance plan offered by PNB MetLife. The plan not only provides life insurance coverage at nominal cost, it also offers the total of all premiums paid along with guaranteed additions.
- Max Life Premium Return Protection Plan: This is a term insurance plan with maturity benefits offered by Max Life Insurance Company. The plan not only protects your family against eventualities, it also returns all your premiums paid at maturity.
- Aviva iShieldPlan: This is an online non-linked non participating term life insurance plan offered by Aviva. The plan provides guaranteed survival benefits/ money back benefits at maturity which is 110% of total premiums paid.
- Tata AIA Life Insurance iRaksha TROP: This is an online term return of premium plan which a returns all total premiums paid, if the policyholder survives till the end of policy term.