As its name suggests, a life insurance plan is a financial product that offers you a life cover. However, there are several variants of life insurance plans that include an element of savings benefits in the long term.
You may be aware that, by default, a term plan does not provide a maturity benefit. If you are wondering what benefits you can get in case you survive through the tenure of a term plan, here is a detailed discussion on the subject.
Before we discuss the survival benefits of a term plan, let us understand what a term plan means.
Term insurance is a pure life insurance plan that provides a life cover to assure a death benefit for your family in case of your demise during the policy term. In addition to this, it provides more sum assured than most other life insurance policies and at an affordable premium.
At Tata AIA, we offer a range of flexible features to enable you to modify a term plan as per your needs.
let us now understand the survival benefits available under a term policy.
We have discussed some of the most prominent survival benefits of a term plan. You can use a term plan as an investment option by investing in it early, allocating a larger proportion of your income towards it, and staying invested in it for the longer term.
Term insurance coverage can be considered one of the best ways to financially secure your family in your absence. However, there are several survival benefits of term plans in the form of the return of premium2 and regular income that can be used for various personal and family commitments.
In addition to the above, the add-on riders # available with term plans can help you handle a range of unfavourable events. Therefore, if you are planning to purchase a term plan, try to invest in it as early as possible for a lower premium and a longer policy term with a return of premium option and survival benefits. Such an approach can help you get the maximum protection and benefits from your term insurance plan.
L&C/Advt/2023/Jan/0313