Life Insurance Policy With Maturity Benefits - All You Need To Know
Updated On Oct 12, 2023
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The life insurance plans with maturity benefits are slightly different from the traditional life insurance plans. Normally, a traditional life 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 maturity benefits, he/she can opt for a TROP (Term Return of Premium) plan. A term return of premium plan provides income replacement and refunds the premiums at maturity, apart from offering all benefits of a traditional term life insurance plan. A TROP plan is a variant of a pure life insurance plan and ensures maturity benefits if the policyholder survives till the end of the policy tenure.
Benefits of Life Insurance With Maturity Benefit
The term life insurance plans with maturity benefits offer a number of attractive benefits which include:
1. Death Benefits
Life 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 the 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.
Top 5 Life Insurance Plans With Maturity Benefit India
Listed below are some of the term life insurance plans in India that come with maturity benefits.
1. LIC Jeevan Pramukh
This is an Endowment Assurance term life insurance plan offered by Life Insurance Corporation of India. The LIC Term Insurance plan provides financial protection against death throughout the policy term and provides maturity benefits, provided the policyholder survives till the end of the 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.
2. 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 a nominal cost, but this PNB MetLife Term Insurance also offers the total of all premiums paid along with guaranteed additions.
3. Max Life Premium Return Protection Plan
This is a life insurance plan with maturity benefits offered by Max Life Insurance Company. The plan not only protects your family against eventualities, but this Max Life term Insurance also returns all your premiums paid at maturity.
4. Aviva iShieldPlan
This is an online non-linked participating term life insurance plan offered by Aviva. The Aviva Term Insurance plan provides guaranteed survival benefits/money-back benefits at maturity which is 110% of total premiums paid.
5. Tata AIA Life Insurance iRaksha TROP
This Tata AIA Term Insurance Plan is an online term return of premium plan that returns all total premiums paid if the policyholder survives till the end of the policy term.
Conclusion
In order to choose the best life insurance plan with maturity benefits, you need to shop around and do primary research. Then, compare the plans available in the insurance market and pick one based on your requirements. Couples who are looking to purchase an insurance policy have the option of either going in for a single life insurance policy or a joint life insurance policy.
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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.
