Financial stability is one of the critical requirements for any individual today. Investing in a secure future is a priority; thus, the popularity of different insurance policies is rising.
Among the different policies, term insurance is one of the top choices. It offers guaranteed financial backup in your absence. Moreover, choosing between the different term insurance policies available is now easier than ever with the help of a term insurance premium calculator, making it a good investment for a better tomorrow.
Many people believe that the benefits of term insurance are limited to just death benefits. However, that is not entirely true. There are several term insurance maturity benefits that make investing in term insurance a no-brainer.
If you are not aware of these benefits, this article will help you understand.
All About Term Insurance Plans
There are two different types of term insurance policies available today, a basic term insurance policy and a basic term insurance plan with maturity benefits. The basic plan will provide financial support to the family members and maturity benefits to the policyholder.
- Basic Term Insurance- Under this, policyholders get the benefit of complete protection via a life cover to help their family with financial expenses post the demise. It is an investment for a better future for your family members.
- Term Insurance with Maturity Benefits- Some term insurance plans provide the policyholders with some benefits as an addition to the basic term insurance. These include term insurance plans with a Return of Premium option.
Simply put, the premium amount you pay throughout the pre-decided period for the policy is given back to you as a maturity benefit if you survive the policy tenure.
Why Choose Term Insurance Maturity Benefits?
If you want to invest in a term insurance plan with maturity benefits, here are some essential features to remember.
- Anyone between 18 to 65 can buy a term insurance plan with maturity benefits, making it a perfect option for newly married couples, new parents, self-employed individuals, homemakers, etc.
- Term insurance with maturity benefits allows you the convenience of choosing your payout option. You can choose between single, regular or fixed-time premium payout and spread it over yearly, monthly or quarterly payments.
- As an added advantage of surviving a term period, you get a policy maturity benefit, which can be used as a financial back-up for the second innings of your life.
- When you choose term insurance with maturity benefits, you get the benefit of life cover and a set amount of your premium lump sum as savings for surviving the policy tenure. This way, you get guaranteed savings for a better future while leaving a financial blanket for your family members in case of your absence.
- Future expenses, like child education, home purchase, etc., are pre-planned. Policyholders looking to fulfil such expenses later can benefit from advanced financial planning with the help of term insurance with maturity benefits. The premium payout repaid to the policyholder can help achieve these financial requirements in the future.
- Term insurance plans with maturity benefits offer a variety of tax benefits under Section 10 (10D) of the Income Tax Act. With this, you can avail of tax exemptions on earned sum amount under maturity benefits.
Conclusion
Term insurance can significantly support your family members in an unfortunate incident of your death. However, by adding maturity benefits to your term insurance plan and choosing to invest in the Return of Premium category, you are also adding a financial safety net for yourself for the future.
To decide amongst multiple term insurance plans, you need to understand your financial goals, future expense plans, and the budget for investment. Next, read the terms and conditions and choose the one that meets your requirements the best.