Every person looks for ways to secure their family’s future. Insurance policies help you achieve that objective with ease. It is essential to find a balance between insurance and investments when planning your finances. With a plethora of insurance options available in the market, choosing the right one can be overwhelming.
If you are looking for an affordable life insurance product to secure your family’s future, consider term insurance plans. A basic term plan offers death benefits to the family of the insured if he/she dies a premature death.
However, insurers in India allow you to enhance the coverage of the term insurance plan with rider benefits. Some of the essential rider benefits that may come in handy are as follows –
- Critical illness benefit
- Return of premium benefit
- Waiver of premium benefit
- Income return benefit
- Accidental death benefit
In this section, we will be discussing in elaborate details about the return of premium benefit in term insurance.
Term Insurance with Maturity Benefit
Ideally, term insurance plans only offer death benefits to the beneficiaries. But what if we tell you that there is a way for you to receive maturity benefits in term insurance as well. That’s right. With the return of benefit cover, you will be able to receive the premiums paid towards the policy in case you survive the plan tenure.
The insurer will repay the full premium amount that you have paid over the years towards the term insurance plan. This amount is treated as maturity benefits of the term insurance plan.
However, note that you need to buy the return of benefit facility over and above your existing term plan. Without this additional cover, you will not receive any benefit in case you outlive the policy tenure.
Key Features of Term Insurance Plan with Maturity Benefits
The following are the key features provided by term insurance plans with maturity benefits available in the market.
- Entry Age: The entry age of term insurance with maturity benefits is between 18 years old and 65 years old.
- Premium Payment Options: The policy offers a variety of premium payment options such as single payment, limited payment, and regular payment.
- Policy Maturity: The policy can mature when the insured is between the age of 25 years old and 65 years old.
- Premium Payment Mode: You can pay the policy premiums monthly or on an annual basis.
- Coverage: The policy offers death as well as maturity benefits.
- Policy Term: The policy term is a minimum of 5 years and a maximum of 30-35 years.
To Sum It Up!
When you opt for the return of premium cover, you will have to pay additional premiums over and above your existing term plan premiums. Also, the about received as maturity benefit does not include these add-on premium charges. You can use a term insurance calculator to determine the premiums after opting for different add-ons on your term plan.
So, when buying term insurance with rider benefits, make sure you only choose the ones that you think are most suitable for your needs.