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Term Insurance Calculator
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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$, also known as term insurance with a maturity benefit, is a viable option for those who want the life cover benefits of a term plan, along with some returns at the end of the policy term.
A term insurance plan is a pure protection plan that offers a life cover to the insured and their family. In the event of the insured’s untimely demise during the course of the policy, this life cover offers a predetermined sum assured to the family/beneficiaries. With the help of this amount, the family can sustain themselves financially and continue fulfilling their commitments even in the absence of the insured, who may have been the sole earning member.
Term plans are known to be very flexible and offer a high sum assured for very affordable premiums. The death benefit payable to the beneficiaries should be well-planned by the policyholder after considering the individual needs of all family members and any medical emergencies.
The premiums paid towards a term insurance plan offer life insurance coverage to your family. However, with a term plan with maturity benefits, the total premiums paid throughout the chosen premium-paying term are returned to you as a maturity benefit. Depending on your individual needs, you can decide how to utilize this lump sum payout receivable on maturity.
However, suppose you, the life insured, pass away during the policy term. In that case, the term plan with maturity benefit will pay out the death benefit to your beneficiaries, either as a lump sum or a regular income, per your chosen payout mode.
When you purchase term insurance with maturity benefits, this benefit is available in the form of the return of premiums$. The total premiums paid on the policy are paid out when the policy matures and if the policyholder survives the policy term.
A Non-Linked Non-Participating Individual Life Insurance Product (UIN:110N176V01)
Tata AIA
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).
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
Newly Married Couples
Young Parents
Young Parents
Self-employed Persons
Self-employed Persons
Homemakers
Homemakers
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:
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.
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.
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.
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.
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 a policy. Or you can also look into term plans that offer whole life cover for comprehensive coverage.
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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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. If you outlive the policy term, you will be eligible to receive the total premiums paid towards the policy throughout the policy term.
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.
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$. This type of term plan offers a return of all the premiums paid on the policy during the premium payment term.
A pure term plan will only offer a life cover that will extend death benefits to the beneficiaries. Once this benefit is paid out, no other benefit will be payable. However, if the policyholder survives the term of a pure term plan, no maturity benefits will be paid out when the tenure is over.
A term plan with maturity benefits will offer the death benefits or the maturity benefits to the beneficiaries or the policyholder, as per the applicable scenario. However, the policy should not have been surrendered, and all the premiums should have been paid to date for the maturity benefits to be applicable.
The maturity benefits on term insurance with return of premium$ will be tax-free under Section 10(10D) of the Income Tax Act subject to fulfilling conditions under section 10(10D).
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.
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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