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As the name suggests, term insurance is a protection plan for a specified term for your family and loved ones. This life insurance plan is a necessity to protect your family from any unforeseen circumstance that can lead to loss of income; i.e. it protects them from any unlikely future financial difficulties.

This is basically termed as “sum assured”, or the fixed amount that the family is assured in case the policyholder passes away. 

However, since term insurance benefits become due once the policyholder dies during the specific term; there may be situations too where nothing unfavourable happens during such a term. Then what? You have kept aside a fixed sum of money every year towards these premiums for your family’s protection which you could have used for your child’s education or house, or any other financial goal. Does it mean there is no payback? 

It may seem weird paying premiums for term insurance that does not offer you any return at the end; but if you look at the benefits from a holistic perspective, you’ll see that term insurance provide you with a considerably higher sum assured benefit that most of the plans don’t. Further, the addition of more riders to the plan further widens your coverage under the term insurance policy.
Under basic term life insurance coverage, there is NO payback if such a situation arises. But if you are looking to gain some benefits from this plan in such an eventuality, then opt for term insurance with maturity benefits. 

Types of term insurance maturity plans

1. Endowment Plans
   This type of term insurance with maturity benefit is the ideal combination of insurance and investment. The funds are invested usually in debt funds; so not only are returns earned but also the risk is manageable. The earnings from these funds are clubbed on to your sum assured and provided to your family.
    
2. Term Life with Return of Premium (TROP) Plans
   These are basic term insurance maturity plans where the sum of paid premiums is returned, along with some interest, to the surviving insured at the end of the term.
    
3. Unit Linked Insurance Plans (ULIPs)
   These are similar to endowment plans, but the funds are invested into the market; thereby, making it ideal for a risk-taking individual. Considering the risk is higher, returns are also higher under ULIPs. You can also partially withdraw funds from these term insurance plans.   

Advantages of term insurance with maturity benefits
There are several benefits which term insurance with maturity plan offers you in addition to the return of your sum assured or death benefit. 

1. Death Benefit
   Similar to every term insurance plan, these plans provide you with a death benefit. i.e. the return of the sum assured to the nominees once the insurance holder dies during the term of the plan.
    
2. Maturity Benefit
   Most of the term insurance maturity conclude when the insurance holder dies during the term, or they reach the end of their term. At maturity, term life insurance plans do not provide any payout. But maturity benefit is provided under TROP plans even if the insured survives the term maturity.
    
3. Pricing
   Term insurance plans are relatively more affordable as compared to other life insurance plans.
    
4. Tax Incentives
   Your term insurance benefits include tax benefits which can be claimed under Section 80 C and 10(10D) of the Indian Income Tax Act, 1961.
    
5. Riders
   You can further add on to your term insurance benefits and coverage by adding on further riders such as Accidental Death or Disability or Critical Illness riders.      

Several insurance companies have introduced numerous term insurance with maturity benefit plans, with each having its own advantages. In order to choose the best maturity benefit plan, you need to shop around and select the one that best suits your requirements. You can compare the applicable premium amounts through the online premium calculator, the claim settlement ratios and the time taken for settlement. You can also opt for a single/ joint term insurance policy and decide on the term insurance benefits that best suits you. Browse the website to know more about Term Insurance and the various Term Plans offered by PNB MetLife.

*Tax benefits are subject to conditions and other provisions of the Indian tax laws and are subject to amendments made thereto from time to time.

Disclaimer: 
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

PNB MetLife India Insurance Company Limited, Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka.
IRDAI Registration Number 117. CI No: U66010KA2001PLC028883. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding the sale.
The marks “PNB” and “MetLife” are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
Call us Toll-free at 1-800-425-6969. Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203
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