Defining Survival Benefit in Term Life Insurance
Tarun, aged 30, bought a term life insurance policy for himself. He never wanted his family to suffer financially if he died an untimely death.
Fortunately, he survived the term insurance plan, so will he get any benefits on survival or all the money paid in premiums will go wasted? Yes, he will get the survival benefits at the time of the policy maturity if he has bought a Term Return of Premium Plan. So, what are these survival benefits, and who will get them? We will talk about all this to clear all your doubts about term insurance with a survivors benefits plan.
What is a Survival Benefits Plan?
As suggested by the name, the survival benefits refer to the amount received by the policyholder at the end of a return of premium term insurance policy.
If a policyholder survives till the end of the term policy, it will offer survival benefits for his/her financial needs. This benefit is not available in a standard term plan but only in the term return of premium plans. Now with such survival plans available, we can confidently call that one can find Best Term Insurance in India.
Best Insurance Plans with Survival Benefits:
Mentioned below is a list of Best Term Insurance in India with Survival Benefits:
- AEGON Life iReturn Insurance Plan: If the policyholder survives till the end of the policy, this plan will return all the paid premiums online.
- Aviva iShield Plan: This online term plan offers survival benefits in terms of 110% of the paid premiums at the time of policy maturity.
- ICICI Prudential Life Guard Return of Premium: The policyholder receives all the premiums paid once the policy gets matured.
- Shriram Life Cash Back Term Plan: This one is a non-participating term life insurance policy that offers premium returns when the policy gets matured.
- Tata AIA Life Insurance iRaksha TROP: This online term life insurance plan will provide all the premium paid only if the policyholder survives till the end of the policy term.
What are the Benefits of Term Insurance with Survival Benefits?
Let’s have a look at the best benefits of term insurance with survival benefits:
- Tax Benefits: The policyholder can easily save money on taxes by getting a term life insurance policy with survival benefits. Under section 80C, as per the Indian Income Tax Act, 1961, all the premiums paid by the policyholder for such a term plan will fetch tax benefits.
- Survival/Maturity Benefits: As told before, if the policyholder survives till the end of the term plan, he/she will get the survival benefits.
- Death Benefits: The best insurance in India offers death benefits to the nominee after the death of the policyholder. All the financial needs of those dependent on the deceased will be taken care of through the death benefits granted to the nominee of the policy.
- Optional Additional Benefits: Besides, the above-mentioned benefits, insurance plans with survival benefits also bring along some optional additional benefits like accidental death, critical illness, and disability coverage.
Top Features of Term Insurance with Survival Benefits:
For a better understanding, we will now acquaint you with the Top Features of Term Insurance with Survival Benefits:
- Entry Age: One may buy a survivors benefits plan at a minimum age of 18 years and maximum age of 65 years.
- Free-Look Period: The best term insurance in India with survival benefits offers a free-look period of 15 days for policies purchased manually and 30 days for online purchased policies.
- Policy Term: A term plan with survival benefits has a minimum policy term of 5 years and a maximum policy term of 30-35 years.
- Type of Plan: There comes a lot of flexibility to choose a term insurance plan with these benefits. You can choose a single-life or joint life-based plan.
- Premium: The premium to be paid for survival benefits with term life insurance will depend on the sum assured as well as on the age of the policyholder.
- Sum Assured: Different life insurance companies may provide different sum assured as per their policy.
- Grace Period: The grace period allowed in term insurance with survival benefits is 15 to 30 days.
- Age of Maturity: Such term plans have an age maturity that may range from 25 years/65 years/75 years till the end of life. Age of maturity may differ from policy to policy.
- Nomination: Easy nominations are available as per the term life insurance policy you choose to buy.
- Policy Coverage: Offers both death benefits and maturity benefits to the policyholder.
- Policy Revival: The term life insurance with survival benefits can be easily revived during the policy revival period.
How to Choose the Right Survival Benefits Plan with a Term Life Insurance:
Several life insurance companies are now offering survival benefits with their term plans. So, a detailed survey of all such plans available in the market as well as online is a must to understand what they are offering.
Choose the plan that offers the best financial security in its survival benefits. Make sure to go through the terms and conditions of the plan you choose to buy.
No wonder, term insurance plans are very popular amongst those who want to secure the future of their family financially. With the survival benefits as an add-on, these plans have become even more lucrative and beneficial for the beneficiary. Remember, no company provides survival benefits unless the policyholder survives the whole tenure of the policy.