If you prefer the simplicity and cost-effectiveness of term life insurance plans, but expect a bit more from them, a term plan with maturity benefit may suit your needs. Also known as term insurance with return of premium, these plans give the premium back to the policyholder as a maturity benefit. Let’s dive into what is a term plan with maturity benefits and how it may suit your needs.
Term Plan with Maturity Benefit
A term plan with maturity benefits is one of the few term insurance policies offering a benefit when the life assured survives the duration of the policy. So, if you buy a term life insurance plan with maturity benefit and the person insured by the policy survives the duration of the plan, you may be able to claim the maturity benefit. In this case, the insurer returns the premium paid into the policy as a maturity benefit. The insurer may deduct any applicable charges.
This makes such a policy suitable for anyone who not only expects maturity returns from their life insurance but also seeks a policy that is simple and relatively affordable.
Key Features of Term Plans with Maturity Benefits
Death Benefit: The insurer pays the sum assured to the beneficiaries if the life assured passes away during the term.
Maturity Benefit: The insurer returns all the premiums paid If the life assured survives the term.
Affordable Premiums: While slightly costlier than level term plans, these policies are still relatively affordable.
Flexible Terms: Policyholders can choose the policy term and sum assured based on their needs.
Why Choose a Term Plan with Maturity Benefit?
This plan suits people looking for a hassle-free plan with some amount of maturity benefit. For example, if you are looking for a policy to be in place for a limited duration to have a security net for your family while you deal with any financial obligations, this could be the right plan for you.
Here are some reasons you may want to consider going for a term plan with maturity benefit.
Financial Security: Provides a safety net for your family in your absence.
Return on Investment: Unlike standard term plans, you get back the premiums paid, making it a zero-loss plan.
Tax Benefits: Premiums paid and maturity benefits can help reduce tax as per Indian tax laws.**
While level term plans are excellent for pure risk cover, a term plan with maturity benefit can be more advantageous for those looking to ensure their investment doesn't go to waste if they outlive the policy term.
Disclaimers:
** Tax exemptions are as per applicable tax laws from time to time.
IndiaFirst Life Insurance Company Limited, IRDAI Regn No.143, CIN: U66010MH2008PLC183679, Address: 12th & 13th floor, North Tower, Building 4, Nesco IT Park, Nesco Centre, Western Express Highway, Goregaon (East), Mumbai – 400 063. Toll free No – 18002098700. Email id: customer.first@indiafirstlife.com, Website: www.indiafirstlife.com. Fax No.: +912268570600. IndiaFirst Life Insurance Company Limited is only the name of the Life Insurance Company and does not in any way indicate the quality of the contract, its future prospects, or returns. For more details on risk factors and terms and conditions, please read the sales brochure carefully before concluding the sale. Trade logo displayed above belongs to our promoter M/s Bank of Baroda and is used by IndiaFirst Life Insurance Co. Ltd under License.
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