Does Term Insurance Provide Survival Benefits?
Published On Dec 31, 2021 10:00 AM By InsuranceDekho
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Term insurance refers to those life insurance policies that provide coverage for a specific period of time. Since protection is offered for a predetermined period of time or term, these policies are known as term insurance plans. In case a policyholder holder or the insured individual dies within the time frame mentioned in a term insurance policy, the policy would death benefits to select nominees, provided the policy is in force.Term insurance plans make sure that designated nominees receive a lump sum amount or the sum assured following the unfortunate death of life insured. Term insurance policies provide high coverage at affordable rates.
Term Insurance with Survival Benefits
Recently, the Indian Insurance industry has started offering survival/maturity benefits along with term insurance plans. Initially, the tem insurance plans provided no survival benefits, even if the policyholder survives till the end of term. This seems to be a major drawback of these term insurance policies, because people get upset for not receiving their money back upon survival. So, in order to benefit the term insurance buyers most and remove this drawback, many life insurance companies in India have started introducing term insurance plans with survival benefits or money back benefits.
Top Term Insurance Plans Offering Survival Benefits In India
Listed below are some of the popular term insurance policies that come with survival benefits:
- Aviva i Shield Plan: This is a non-linked non participating term life insurance plan with return of premium. Aviva i Shield Plan is an online plan and provides guaranteed money back benefits at maturity. The plan offers 110% of total premiums paid as survival benefits.
- Tata AIA Life Insurance iRaksha TROP: This is also an online term insurance plan with return of premium - a plan that will return all total premiums paid, provided the policyholder survives till the end of policy term
- Shriram Life Cash Back Term Plan: It is a non-linked and non-participating term life insurance plan with return of premiums at maturity.
- AEGON Life iReturn Insurance Plan: This is an online term insurance plan that returns you the premiums paid, provided the policyholder survives till the end of the policy term.
- ICICI Prudential Life Guard Return of Premium: The plan returns all the premiums you have paid so far, when the policy matures.
Benefits Offered By Term Life Insurance Plans with Survival Benefits
The term insurance plans with survival benefits may offer the following benefits:
- Death benefits: The designated nominee will receive death benefits following the death of the policyholder. In case of unforeseen death of the policyholder, the term insurance plan will take care of his/her near and dear ones. Term insurance plans are of utmost importance for the bread earner of a family to ensure protection to their dependents.
- Tax benefits: The policyholder may receive tax benefits on the premiums paid for a term insurance plan as per section 80C of the Indian Income Tax Act, 1961.
- Maturity benefits/survival benefits: If the life assured survives till the end of policy term, the policy will offer survival benefits.
- Additional Optional Benefits: These plans come with additional optional benefits such as critical illness and accidental death/ disability coverage.
Given that a number of life insurance companies have started offering term life insurance plans, a careful survey of the different plans available in the market would help you to choose the best plan appropriate for you. So, shop around and find the best term life insurance plan to ensure financial security to your near ones.
Do read - Why Should You Add A Rider To Your Term Insurance Policy?
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.