Term Insurance 1440 views December 26, 2019

Best Term Insurance Plan With Maturity Benefit

Term insurance is a great way to secure the financial wellbeing of your family. It is a kind of life insurance that offers a pure life cover at a low cost. The only flipside of a term plan is that it doesn’t have a return benefit. This means if you outlive the policy period, you do not get anything in return. The term plans with a maturity benefit, however, offer a solution to this issue. You get a maturity benefit at the end of the policy tenure if you survive the period. This is very helpful and allows you to get all your invested money back.

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Understanding A Term Insurance Plan With Maturity Benefit

Usually, a term plan doesn’t offer a maturity benefit. However, there is a variant in term insurance known as TROP or term insurance with return of premium. When you buy a TROP, you do get a sum back after the policy ends and you survive the policy period. This is usually a pre-decided amount. If your term plan is a participating plan, the interest gets added to the maturity benefit and the amount is duly paid back to you. Because of the availability of the maturity benefit, a TROP is generally slightly more expensive than a regular term insurance policy.

Best Term Insurance Plan With Maturity Benefit

Here’s a look at some of the best term insurance plans in India that offer a maturity benefit when the policyholder outlives the tenure of the life cover:

1. MetLife Suraksha TROP

This is a very handy TROP from PNB MetLife. It is an affordable term insurance plan that offers to return all the premiums paid throughout the duration of the plan, provided a life insurance claim is never made on the plan.

2. Max Life Premium Return Protection Plan

Max Life is one of the largest and most successful private life insurance companies in India. All their insurance plans are excellent, including the Max Life Premium Return Protection Plan. It offers all the benefits of term insurance and in addition, returns the premium amount paid when the policy ends.

3. Aviva iShield Plan

The Aviva shield plan is a very good TROP that offers 110% of the premium amount returned when the policyholder survives the policy period. It has some of the best life covers on offer and is a very affordable term insurance plan with maturity benefits.

4. Tata AIA Life Insurance iRaksha TROP

The Tata AIA Life Insurance iRaksha TROP is a straightforward TROP that pays back all the premium you paid throughout the policy period if you survive the tenure of the plan.

Choose between any one of the above-mentioned term insurance plans with maturity benefit and you will have an excellent TROP with you.

Advantages Of Term Insurance Plan With Maturity Benefit

Now let us explore some of the benefits offered by a TROP:

1. Life cover

The reason why people buy life insurance is to have a life cover. This holds true for all forms of life insurance, including term insurance and TROP. A term insurance plan with a maturity benefit offers a comprehensive life cover. If the policyholder dies during the period of the plan, the nominees receive a death benefit. This is an essential benefit offered by a TROP and the main reason why people consider getting the plan.

2. Maturity benefit

As mentioned above, the maturity benefit is exclusively available in a TROP and in no other type of term insurance. This is very beneficial for those who look for a good life cover but also hope to get their invested money back when the life insurance claim is not needed. There is no wastage of funds and all the premium paid is given back to the policyholder.

3. Tax relief

As in all other forms of life insurance, you get tax relief when you pay the premium of your TROP. As per Section 80 C of the Indian Income Tax Act, premiums paid towards a term insurance plan with maturity benefit is tax exempted up to a maximum sum of Rs 1.5 lacs a year. This is another very useful advantage of buying a TROP.

4. Riders available

A term insurance plan with a maturity benefit is exactly like any other type of term insurance. As a result, you get to add riders to your policy to make it more flexible. The common TROP riders include the accidental death benefit rider, the critical illness rider and so on.

In Conclusion

As you can clearly see from the points mentioned above, the best term insurance plan with maturity benefit offers many advantages to you. There are many options to choose from as well. So get going and find your ideal life cover and keep yourself and your loved ones secured under an excellent term insurance life cover.

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