What are the maturity benefits of term plans?

Maturity benefits indicate the sum received by a policyholder or his/her beneficiaries when a policy matures. Typically, a traditional term insurance plan does not offer any maturity benefit. It only offers term insurance death benefit when a policyholder passes away within the policy term.

If you want to receive maturity benefits, you can opt for a ‘Return of Premium Term Plan’. This plan is a variant of a pure term plan that ensures maturity benefits if you survive till the end of policy tenure. Put simply, apart from offering all the benefits of a traditional term plan, the return of premium term plan refunds all the premiums paid at maturity.

Consider, a term plan with Rs 50 lakh cover for 30 years for which the yearly premium is Rs. 3800. If the life assured passes away, his family would be paid Rs. 50 lakhs, which is term insurance death benefit. However, if the life assured survives the term of 30 years, the insurance company will return the entire premium paid i.e., 1,14,000 (Rs. 3800*30).