Buy Term Insurance Plan with Maturity Benefits Online in India

Term insurance is an excellent choice for ensuring your family’s financial security in an unforeseen circumstance.

While pure-term insurance plans do not offer survival or maturity benefits to the policyholder, many individuals look for additional advantages in their term plans. Therefore, term insurance with a return of premium, also known as term insurance with a maturity benefit, is a feasible option for those who desire the life cover benefits of a term plan, along with some returns at the end of the policy term.

A term insurance with maturity benefits is essentially a term insurance that goes beyond the traditional feature of just death cover.

This policy provides coverage in the event of death and includes a savings component for those who outlive the policy term. When the policy matures, the policyholder receives a lump-sum refund of the premium paid, which is a valuable financial asset.

This innovative approach to traditional term insurance combines the security of insurance with the advantage of savings, thus adding an extra layer of financial planning and security.

Understanding Term Insurance with Maturity Benefits Scenarios with an Illustration

Here's an example to illustrate how it works:

Raman is a 30-year-old software engineer earning ₹10 lakhs per annum. He wants to secure his family's financial future and buys a term plan with maturity benefits for a sum assured of ₹1 crore and a policy term of 30 years.

Raman pays an annual premium of ₹30,000 for 30 years. If he dies during the policy term, his family will receive a lump-sum amount of ₹1 crore as the death benefit. However, if Raman survives the policy term, he will receive the maturity benefit of ₹30 lakhs (the total premiums paid over 30 years plus a guaranteed interest rate) at the end of the policy term.

This type of policy helps to protect Raman's family financially in case of his untimely death and also serves as a long-term savings plan.

It also ensures that Raman receives a lump-sum amount at the end of the policy term if he survives, which he can use to accomplish his future financial goals.

Overall, term life insurance with maturity benefits helps you secure your family's financial future while also providing a savings component to help you achieve your long-term financial goals.

No, not all term insurance plans come with maturity benefits. Typically, pure term insurance plans offer pure protection. This means that the policyholder pays regular premiums to keep the plan active, and in the unfortunate event of their death, the assigned nominees receive a death benefit.

However, pure term plans do not provide any additional benefits. If a policyholder wants to receive a maturity or survival benefit, they must opt for term plans that include a return of premium benefit. This feature ensures that the premiums paid are returned to the policyholder if they survive the policy term.

1. Financial Security

2. Maturity Benefits

Unlike the traditional term policies, these policies provide a maturity benefit. This maturity benefit is the total of all premiums paid throughout the policy term.

Thus, if a policyholder survives the policy term, they receive back their investment, thus making this kind of plan a popular investment choice among people looking for financial coverage and potential savings.

3. Paid Up Option

Most of these policies offer a paid-up option. If the policyholder cannot continue paying premiums and has attained a paid-up status, the policy continues with reduced benefits.

This is a very useful feature for cases where adverse financial circumstances exist and the policyholder still wants to maintain some coverage but can no longer afford the premiums.

4. Flexible Payout Options

5. Surrender Value

As with all other insurance plans with a savings component, these term plans with maturity benefits also provide a surrender benefit.

If the policyholder needs to discontinue their policy before its maturity for any reason, they can surrender it and receive a specific surrender value.

This value depends on the number of premiums paid and the policy duration.

6. Riders

7. Tax Benefit

The premium paid towards term plans with maturity benefits is tax-free under Section 80C, and the benefits received are tax-free under Section 10(10D), thus ensuring that the dependents receive complete policy benefits without any tax liability.

However, the tax benefits depend on the prevailing tax norms.

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Compare Different Term Plans with Maturity Benefits

Term plans with maturity benefits are highly flexible, so compare different policies to find the best fit for your family’s needs. Look for additional benefits or riders, such as critical illness coverage, accidental death benefits, or disability coverage, providing a broader safety net for the policyholder and their family.

It combines the benefits of a term plan with the lifelong security of a whole-life policy. As long as the premiums are paid, the policy remains active, and the beneficiaries will receive a payout upon the insured’s death, regardless of when it occurs.

We have different priorities regarding investment decisions based on our life goals and financial situations. Our health, age, lifestyle, source of income, liabilities, and dependents affect these decisions.

Hence, we might have different reasons for buying insurance coverage. Some of the most common groups of people who can buy term insurance with maturity benefits are:

1. Unmarried

As an unmarried person, you might still have your parents dependent on you, especially if they are retired or nearing retirement.

A term plan provides a financial cushion for them in case of your unfortunate death. If you survive the policy term, you have accumulated a corpus for yourself at a comparatively young age.

2. Married with Children

Parents carry an enormous financial responsibility for their children’s present and future. Apart from the current lifestyle, they also need to build savings for their future, viz., higher education, wedding, and other financial goals.

Even if your spouse earns, you must secure your share of finances with a term policy.

Term insurance with maturity benefits can help you achieve your primary life goals and your children. If you survive the term, you also get the maturity benefit that you can use for your retirement years.

3. Married without Children

Even if there is no responsibility for children yet, you still carry a responsibility towards your spouse, whether earning or not, not to mention your parents.

A term plan at any stage of life builds up a monetary backup for your dependents. The maturity benefits at the end of the policy term add up to your future savings.

4. For the Self-Employed

5. For Homemakers

Financial Protection

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Flexibility

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Riders and Add-Ons

Income Replacement