Term Insurance with Maturity Benefits: More than Just a Life Cover
Experts say that a solid financial plan remains incomplete without an insurance policy. It is very important for planning contingencies. Although we know that a term insurance covers our future, some policies that come with maturity benefits offer a number of additional benefits.
Why do these Term Plans stand out?
Term insurance with maturity benefits serves mainly two purposes. Primarily, they can be highly cost effective, because they have lower premium rates. And secondly, apart from providing a life cover, they provide guaranteed returns on the premium paid during the tenure of the policy, in the form of maturity benefit.
Standalone Elements of Maturity Benefit Plans
This works like any other term plans. Maturity benefits are one of the most attractive features of this type of policy. Apart from just covering you life, the policy will return your premiums in case your do not die.
1. Premium: Like any other insurance, this also works on a “level” concept. So, your premium would remain unchanged throughout the term of the policy, unless and otherwise the policy is broken or revoked, in which case a renewed premium might be worked out.
2. Maturity Benefit: This is the amount payable to the insured upon maturity of the policy. One special feature of term insurance with maturity benefit is that, the plan allows the premium been paid over the years to be refunded, if there is no such life calamity. Some insurance companies provide additional benefits and guarantees. For instance, some polices offer a discounted rate, while others may offer a bonus amount.
3. Death Benefit: The sum assured in a term insurance plan with maturity benefits is payable to the beneficiary in the event of death of the person insured.
Additional Advantages
1. Mid Term Benefits: You have the option of taking a mid-term benefit policy as well. When you survive past the mid-term of the policy, the insurance company will return 40% - 50% of the premium amount, or the percentage stipulated in the policy document. So if you do not want to wait for the full term, then you can even take up a mid-term plan.
2. Assured Income: It is the most popular instrument for retirement planning. This is simply because, the money saved during your working period, will be utilized to provide a steady source of income during retirement.
If you are planning to take up a life cover, opt for a term insurance with maturity benefits, considering all its advantages.
Experts say that a solid financial plan remains incomplete without an insurance policy. It is very important for planning contingencies. Although we know that a term insurance covers our future, some policies that come with maturity benefits offer a number of additional benefits.
Why do these Term Plans stand out?
Term insurance with maturity benefits serves mainly two purposes. Primarily, they can be highly cost effective, because they have lower premium rates. And secondly, apart from providing a life cover, they provide guaranteed returns on the premium paid during the tenure of the policy, in the form of maturity benefit.
Standalone Elements of Maturity Benefit Plans
This works like any other term plans. Maturity benefits are one of the most attractive features of this type of policy. Apart from just covering you life, the policy will return your premiums in case your do not die.
1. Premium: Like any other insurance, this also works on a “level” concept. So, your premium would remain unchanged throughout the term of the policy, unless and otherwise the policy is broken or revoked, in which case a renewed premium might be worked out.
2. Maturity Benefit: This is the amount payable to the insured upon maturity of the policy. One special feature of term insurance with maturity benefit is that, the plan allows the premium been paid over the years to be refunded, if there is no such life calamity. Some insurance companies provide additional benefits and guarantees. For instance, some polices offer a discounted rate, while others may offer a bonus amount.
3. Death Benefit: The sum assured in a term insurance plan with maturity benefits is payable to the beneficiary in the event of death of the person insured.
Additional Advantages
1. Mid Term Benefits: You have the option of taking a mid-term benefit policy as well. When you survive past the mid-term of the policy, the insurance company will return 40% - 50% of the premium amount, or the percentage stipulated in the policy document. So if you do not want to wait for the full term, then you can even take up a mid-term plan.
2. Assured Income: It is the most popular instrument for retirement planning. This is simply because, the money saved during your working period, will be utilized to provide a steady source of income during retirement.
If you are planning to take up a life cover, opt for a term insurance with maturity benefits, considering all its advantages.
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