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- What is term insurance with maturity benefit?
What is term insurance with maturity benefit?
Term insurance with a maturity benefit is often referred to as a Term Plan with Return of Premium, or TROP. It gives life cover for the policy term, like a standard term plan. The difference is that if the policyholder survives the full policy term, the insurer returns the eligible premiums paid in accordance with the product terms.
In a pure term plan, the nominee receives the sum assured if the policyholder dies during the policy term. If the policyholder survives the term, there is usually no maturity payout.
Salient aspects of term insurance with maturity benefit:
- Death benefit: The sum assured is payable to the nominee if death happens during the policy term.
- Maturity benefit: If the policyholder survives the policy term, eligible premiums are refunded in accordance with the policy terms.
- Higher premium: These policies usually cost more than pure term insurance because they come with a survival benefit.
- Protection plus premium return: This may suit buyers who want life cover and prefer to receive a premium refund if they outlive the term.
This type of plan can be useful if you want the comfort of getting your premiums back. But if your main priority is maximum life cover at the lowest possible premium, it may not be the most budget-friendly option. For such buyers, a pure term plan may provide higher cover for the same budget.
One important point is that not all amounts paid may be included in the returned amount. Taxes, rider premiums, levies, underwriting extras, or other charges may or may not be included, depending on the exact product terms and benefit illustration.
One important point is that not all amounts paid may be included in the returned amount. Taxes, rider premiums, levies, underwriting extras, or other charges may or may not be included, depending on the exact product terms and benefit illustration.
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Q. What is an ideal time to buy Term Insurance?
A. After Marriage
B.Before Marriage
C.In your early 20s
D. After 40
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