Maturity Benefits for Different Term Life Insurance Plans

Term Insurance with Maturity Benefit India

The term life insurance plans with maturity benefits are slightly different from 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 the 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:

Benefits of Term Insurance with Maturity Benefit

The term life insurance plans with maturity benefits offer a number of attractive benefits which include:

1. 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.
2. 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.
3. 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.
4. Term life insurance plans with maturity benefits also offer additional riders such as Critical Illness and Accidental Death or Disability riders.
5. Term life insurance plans come at affordable premiums rates.

Who Should Purchase Term Insurance with Maturity Benefits 

Every individual may have different goals when it comes to making significant financial commitments, like purchasing term insurance with return of premium (TROP) plan. This is heavily influenced by a variety of personal factors like your age, lifestyle habits, source of income, and health problems. Therefore, if you want to buy a TROP plan, you should weigh the benefits against these factors. TROP is generally a better option for individuals who come under these categories:

Married with children: Parents carry a wide range of financial responsibilities for the welfare of their children. Their investment strategy includes saving for children’s education, wedding, and other goals. Thus, a term plan with return of premium that assures a maturity benefit can be useful.

Married without having children: Married people may also consider a term plan with return of premium. TROP may be beneficial if your spouse is entirely reliant on your income. You can set up a monetary backing system for them to protect their future against any unforeseen events. The maturity benefit provided at the conclusion of the policy's term will be an added benefit.

Unmarried: You might be responsible for your parents' finances as an unmarried person, particularly if they are retired. The maturity benefit of a term plan with return of premium guarantees that they will receive a substantial sum of money in either case. In the unfortunate event of the policyholder’s death, the death benefit will cover the costs of the parents.

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 iShield Plan: This is an online non-linked non participating term life insurance plan offered by Aviva. Aviva iShield 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.

How to Choose The Best Term Insurance Plans with Maturity Benefits

In order to choose the best the term life insurance plan with maturity benefits, you need to shop around and do a primary research. Then, compare the plans available in the insurance market and pick up a one based on your requirement.

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