Do You Get Survival Benefits Through Term Insurance Plans?
Term insurance policies are pure life insurance plans that offer you high insurance coverage at an affordable cost. With a term insurance policy, your loved ones will get the financial coverage they need if something happens to you.
Purchasing term insurance plans are also quite easy these days. Most insurers like Tata AIA offer term plan calculators on their website to help customers purchase the Tata AIA term insurance plan after calculating the premiums to be paid. This way, you get to purchase a suitable plan for yourself based on your insurance needs and budget.
The term insurance benefits were limited only to the plan’s insurance coverage. However, wouldn’t it be better if the term plan also offered additional benefits like survival benefits with the plan?
Do You Get Survival Benefits In Term Insurance?
Term insurance policies did not come with any survival benefits in the past. So if you survived the policy’s maturity date, you didn’t get any benefits from the plan. However, today insurers have launched the term policy that offers survival and death benefits.
Certain insurers offer the term plan with a return of premiums with survival benefits. With the term plan with the return of premium, you will get the premium amount as a survival benefit once the term plan reaches maturity. So even if you may improve your coverage by increasing the premium amount, you will get the entire premium amount back once the policy reaches maturity.
Features of Term Insurance With Survival Benefits
Given below are some term plan benefits you will get if you purchase term insurance with survival benefits:
- Policy tenure: You can buy a term plan with survival benefits for a tenure of 5 to 35 years. However, this tenure can vary for different insurers.
- Maturity tenure: Maturity age is the term limit for the maturity of the term insurance plan. You have the flexibility to choose the term limit for your plan. The maximum maturity age that most insurance companies offer is 75 years.
- Age: The minimum age for purchasing term insurance with survival benefits is 18 years, and the maximum age is 65 years. However, the maximum age for purchasing the term insurance with survival benefit will differ for different insurers. In addition, certain insurers offer term insurance plans designed for senior citizens.
- Premium amount: After analysing your term insurance cover, age, riders, the insurance company will set the premium amount. Along with this, the payment frequency that you choose for the policy will also impact the premium amount.
- Sum assured: The sum assured amount varies according to the insurers and individuals who wish to buy the policy. You will get the sum assured as per the plan you have chosen. However, you must choose the suitable sum assured amount as it is the amount your loved ones will get if something happens to you.
- Insurance coverage: The term insurance plan will offer a death benefit and the survival benefit as the return of premium benefit. This way, you get the death benefit and maturity benefit under the single plan.
- Free look period: Term insurance policies that offer survival benefits have a free look period. You get to exit the term insurance plan after the initial 15 to 30 days after purchasing the policy. The benefit of the free look period is that you do not attract any penalties if you choose to exit from the plan. In addition, if you’ve paid any premium amounts, you will get a full refund of the amount you have paid.
- Grace period: If you miss a few premium payments, your term insurance plan will not become inactive. Instead, your insurer will offer you a grace period for making the payment. The general grace period limit is around 15-30 days depending on the insurance company.
A term insurance policy with a survival benefit is an excellent way to protect your loved ones. The policy gives financial support to your loved ones. Along with this, you also get survival benefits if you survive the policy’s maturity period. This way, you get the dual benefit without compromising the insurance coverage.