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Vishal Kapoor

Vishal Kapoor, AVP - Brand & Product Marketing at Tata AIA, has over 17 years of experience in the BFSI sector. He is responsible for driving brand strategy, product & channel marketing campaigns.

Reviewed by

Girish J Kalra

Chief Marketing Officer

Girish J Kalra

Girish J Kalra, Chief Marketing Officer at Tata AIA, leading the organizations marketing & corporate communication initiatives..

Term Insurance with Maturity Benefits

Term insurance is always a suitable option for securing your family’s financial future in case of an eventuality. The life cover offered by a term plan can be as extensive as you want and can be customized to accommodate your family’s needs.

Pure term insurance plans are offer no maturity or survival benefits for the policyholder. However, many people also seek additional benefits from a term plan. Hence, term insurance with a return on premium^$, also known as term insurance with a maturity benefit, is a viable option for those who want the life cover benefits of a term plan, along with some returns at the end of the policy term.

Table of Content

What is a Term Insurance Plan?
Maturity Benefits in a Term Insurance Plan
Advantages of a Term Insurance with Maturity Benefits
Who Should Purchase Term Plan with Maturity Benefits?

How To Choose the Best Term Plan with Maturity Benefits?
Tata AIA Term Insurance Plans with Maturity Benefits
Frequently Asked Questions (FAQs) About Term Insurance with Maturity Benefits

What is a Term Insurance Plan?

Family with their Pet Dog Enjoying Life After with a Term Plan

A term insurance plan is a pure protection plan that offers a life cover to the insured and their family. In the event of the insured’s untimely demise during the course of the policy, this life cover offers a predetermined sum assured to the family/beneficiaries. With the help of this amount, the family can sustain themselves financially and continue fulfilling their commitments even in the absence of the insured, who may have been the sole earning member.

Term plans are known to be very flexible and offer a high sum assured for very affordable premiums. The death benefit payable to the beneficiaries should be well-planned by the policyholder after considering the individual needs of all family members and any medical emergencies.

Maturity Benefits in a Term Insurance Plan

The premiums paid towards a term insurance plan offer life insurance coverage to your family. However, with a term plan with maturity benefits, the total premiums paid throughout the chosen premium-paying term are returned to you as a maturity benefit. Depending on your individual needs, you can decide how to utilize this lump sum payout receivable on maturity.

However, suppose you, the life insured, pass away during the policy term. In that case, the term plan with maturity benefit will pay out the death benefit to your beneficiaries, either as a lump sum or a regular income, per your chosen payout mode.

Tata AIA Term Insurance Plans with Maturity Benefits

When you purchase term insurance with maturity benefits, this benefit is available in the form of the return of premiums^$. The total premiums paid on the policy are paid out when the policy matures and if the policyholder survives the policy term.

Know More about our Best Selling Term Insurance Plan – Tata AIA Sampoorna Raksha Supreme

A Non-Linked Non-Participating Individual Life Insurance Product (UIN:110N176V01)

Tata AIA

Sampoorna Raksha Promise

Key Features:

Get 100% premium amount back**
Whole life cover up to 100 years of age^^
Save Income Tax^# up to 46,800⁺⁺

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Advantages of a Term Insurance with Maturity Benefits

Term plans that offer returns on maturity may have slightly higher premiums than a traditional pure term plan. However, this is beneficial since the returns^$ offered on policy maturity need to be substantial enough for you and your family. Nevertheless, term insurance with a maturity benefit can still offer reasonable premiums if you carefully compare various policies and choose a suitable one.

A term plan with a maturity benefit comes with the following advantages:
Assured Protection

Just like a pure term plan, term insurance with a maturity benefit also offers a death benefit on the policyholder's untimely demise. In this case, the appointed nominee can file a claim with the life insurance company and receive the death benefit sum assured as predetermined under the policy.

Financial Security

A term policy with a maturity benefit provides comprehensive financial security to your family and you. The death benefit and the maturity benefit can help sustain your beneficiaries and you, depending on the scenario.

Tax Benefit

A term plan with a maturity benefit is eligible for tax^# benefits under Section 80C of the Income Tax Act, where you can claim deductions on the premiums paid. The policy's death benefit is exempt from tax under Section 10(10D).

Who Should Purchase Term Plan with Maturity Benefits?

Term plans with a maturity benefit are suitable for different policyholders, depending on their needs and their family needs. Since the maturity benefit is paid out as a lump sum to the policyholder at the end of the policy term, here are some categories of persons who can opt for a term plan with maturity benefits:

Newly Married Couples

Marriage is an important milestone as it brings new responsibilities. With a term plan that offers extensive life insurance coverage, newly married couples can also benefit from the return on the premiums^$. The lump sum of the total premiums paid out on maturity can help accumulate a fund for the future.

Newly Married Couples

Marriage is an important milestone as it brings new responsibilities. With a term plan that offers extensive life insurance coverage, newly married couples can also benefit from the return on the premiums^$. The lump sum of the total premiums paid out on maturity can help accumulate a fund for the future.
Young Parents

Young parents can get a term plan with a return of premiums as the life cover can protect their children’s future. Additionally, the maturity benefit paid out at the end of the policy term can be added to their pre-planned funds and used for their children’s future goals, such as education and specialized courses.

Young Parents

Young parents can get a term plan with a return of premiums as the life cover can protect their children’s future. Additionally, the maturity benefit paid out at the end of the policy term can be added to their pre-planned funds and used for their children’s future goals, such as education and specialized courses.
Self-employed Persons

Self-employed professionals or even businesspersons need term insurance coverage to secure their families and financial liabilities such as loans and debts. With the dual benefit of the death and maturity benefits, as applicable, one can plan their future financial commitments and prepare for uncertainties.

Self-employed Persons

Self-employed professionals or even businesspersons need term insurance coverage to secure their families and financial liabilities such as loans and debts. With the dual benefit of the death and maturity benefits, as applicable, one can plan their future financial commitments and prepare for uncertainties.
Homemakers

Having term insurance is important for homemakers as it is for anyone else. While the term life insurance coverage can help the insured protect their family at very affordable premiums, the added benefit of the maturity amount payable term can help them save some additional funds for themselves and their family.

Homemakers

Having term insurance is important for homemakers as it is for anyone else. While the term life insurance coverage can help the insured protect their family at very affordable premiums, the added benefit of the maturity amount payable term can help them save some additional funds for themselves and their family.

How to Choose the Best Term Plan with Maturity Benefits?

If you want to select the most suitable term insurance plan with maturity benefits that adequately meet your family’s needs, some research is necessary. Apart from considering all your financial commitments and your family’s future needs, you will also have to check various aspects of the policy, as given below:

Your Family’s Life Stage Requirements.

A term plan with maturity benefits can offer comprehensive coverage to your family during the policy period. Consider all of their needs, such as education, medical emergencies, daily needs, etc., at each stage of life. Then determine which term policy can offer sufficient coverage to them.
Consider Loans and Liabilities

Your term insurance plan should be able to cover unpaid loans and debts so that your family does not have to handle financial burdens in your absence. Not only should you consider such financial emergencies in your term plan, but you should also select a high-coverage policy that can offer such a sum assured to your family.
Calculate The Premiums

Term plans premiums are quite affordable, but in term plans with maturity benefits, the premiums will be slightly higher due to the added benefit of the maturity amount. However, you can calculate how much premium you can pay as per your financial capacity and choose a term plan accordingly.
Premium Paying Options

To further enjoy affordable premiums and keep your policy active with regular payments, your policy should offer different premium-paying options. You can choose from Single, Regular or Limited Pay or pay the premiums on a monthly, quarterly, half-yearly or annual basis.
Compare Term Plans

Since term plans are very flexible, compare different policies and plan options to see which features are suitable for you and your family’s needs. If there are inbuilt benefits like a critical illness cover, you can opt for such term insurance for critical illness. Or you can also look into term plans that offer whole life cover for comprehensive coverage.
Look For Better Claim Settlement

An insurance company’s individual death claim settlement ratio should be better as it directly indicates they can support your family with timely claim settlement when needed.

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Frequently Asked Questions (FAQs) About Term Insurance with Maturity Benefits

Does a term insurance plan offer maturity benefits?

A pure term plan offers only a life cover that extends a death benefit on the policyholder’s death. However, a term plan with a return of premiums will offer a maturity benefit.
What happens when a term insurance policy matures?

When a pure term plan matures, the policy will terminate, and no benefits can be offered. When a term plan with a return of premium^$ matures, the total premiums paid over the premium paying term will be returned to the policyholder as a maturity benefit.
Is there a way to get money back in term insurance after maturity?

Yes, if you want to receive your money on maturity in a term plan, you can opt for a term plan with a return on premium^$. This type of term plan offers a return of all the premiums paid on the policy during the premium payment term.
What is the difference between a pure term insurance plan and a term plan with maturity benefits?

A pure term plan will only offer a life cover that will extend death benefits to the beneficiaries. Once this benefit is paid out, no other benefit will be payable. However, if the policyholder survives the term of a pure term plan, no maturity benefits will be paid out when the tenure is over.

A term plan with maturity benefits will offer the death benefits or the maturity benefits to the beneficiaries or the policyholder, as per the applicable scenario. However, the policy should not have been surrendered, and all the premiums should have been paid to date for the maturity benefits to be applicable.
Are the term insurance maturity benefits taxable?

The maturity benefits on term insurance with return of premium$ will be tax-free under Section 10(10D) of the Income Tax Act subject to fulfilling conditions under section 10(10D).
Which type of term insurance is the best?

The type of term plan that will be suitable for you will depend completely on your insurance needs. Those seeking only a pure life cover can opt for a pure term insurance plan. On the other hand, if you also want maturity benefits at the end of the policy term, you can opt for a term plan with a return of premiums.
What is the difference between maturity value and sum assured in term insurance?

The sum assured of a term plan is the predetermined coverage that can be offered as a death benefit to the beneficiaries in the event of the policyholder’s death. In contrast, the maturity value of a term plan is the return of the total premiums paid on the policy during the premium payment term.

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Disclaimer
- Tata AIA Sampoorna Raksha Promise - Non-Linked, Non-Participating, pure risk, Individual Life Insurance Product (UIN:110N176V01)
- *Illustrated Premium is the monthly premium excluding taxes for 20 yr. old female, Standard Life, Non-Smoker for ₹ 1 Cr. Sum Assured with Policy Term of 20 yrs. (Regular Pay) under Life Promise Option with first year premium discount for digital purchase and salaried person. Please refer Benefit Illustration for more details. Premium is subject to applicable taxes, cesses & levies which will be entirely borne/ paid by the Policyholder, in addition to the payment of such Premium. Tata AIA Life shall have the right to claim, deduct, adjust, recover the amount of any applicable tax or imposition, levied by any statutory or administrative body, from the benefits payable under the Policy. Kindly refer the sales illustration for the exact premium.
- **Not applicable under PoS, please refer sales brochure for more information
- ^{^^}Under Life Promise Plus Option, an amount equal to the 100% of the Total Premiums Paid(excluding loading for modal premiums) shall be payable at the end of the Policy Term, provided the life assured survives till maturity and the policy is not terminated earlier.
- ^#Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfillment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implication mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.
- ⁺⁺Tax benefits of up to ₹46,800 u/s 80C is calculated at highest tax slab rate of 31.20% (including cess excluding surcharge) on life insurance premium paid of ₹1,50,000. Tax benefits under the policy are subject to conditions laid under Section 80C, 80D,10(10D), 115BAC and other applicable provisions of the Income Tax Act,1961. Good and Service tax and Cess if any will be charged extra as per prevailing rates. The Tax Free income is subject to conditions specified under section 10(10D) and other applicable provisions of the Income Tax Act,1961. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.
- ^{^}Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch.
- This product is underwritten by Tata AIA Life Insurance Company Ltd.
- The plan is not a guaranteed issuance plan, and it will be subject to company’s underwriting and acceptance.
- Insurance cover is available under this product.
- For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. The precise terms and condition of this plan are specified in the Policy Contract.
- Buying a Life Insurance Policy is a long-term commitment. An early termination of the Policy usually involves high costs, and the Surrender Value payable may be less than the all the Premiums Paid.
- In case of non-standard lives and on submission of non-standard age proof, extra premiums will be charged as per our underwriting guidelines.
- This publication is for general circulation only. This document is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. This document is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
- L&C/Advt/2024/Aug/2447