Term Insurance with Maturity Benefits in India

What is a Term Insurance with Maturity Benefits?

How Does Term Plan with Maturity Benefits Work?

Features and Benefits of Term Insurance with Maturity Benefits

Who Should Buy a Term Insurance with Maturity Benefits?

Difference Between Term Plan with Maturity Benefits and Pure Term Plan

Point of Difference Pure Term Plan Term Plan with Maturity Benefit
Insurance Claim Benefit A pure term plan provides only death benefit. Term plan with maturity benefit provides death cover in case of death during the term and in case of survival, it pays back all the premiums paid.
Premium The premium of pure term plan is lowest in the industry as compared to any other type of insurance. Usually, 0.1% of the sum assured The premium in this case is comparatively higher, usually 2-3 times more than that of pure term plans.
Investment Objective Suited for investors whose primary aim is to provide a high financial security to their dependents with a high sum assured. More suited for people who are looking to have an optimum balance between financial protection and savings.
Surrender Value No surrender value as there is no savings component here. Provides surrender benefit after a minimum period when the policy has attained a surrender value.

FAQs about Term Plan with Maturity Benefits in India

Can a Term Plan Premium Change During the Tenure of the Policy?

Usually, it doesn’t. But it can change if there is change in lifestyle declaration like smoking etc., or any addition of riders.

Is the Death of a Policyholder Covered Even if They Die Outside India?

Yes, term plan, once in force, covers death even if its outside the country, but not in its list of exceptions.

Are There Any Disadvantages of a Term Plan with Maturity Benefit?


Yes, a term plan with maturity benefits might have these noteworthy disadvantages:

  • Due to its limited availability across insurance providers, it might be difficult to compare and buy a policy of your choice.
  • They are more expensive than regular term plans. Though the maturity value might look lucrative, you should rethink. The extra sum spent here can be invested somewhere else and can fetch better returns. Also, during the long tenure, the value of your investment that you receive as maturity benefit is depreciated due to inflation