Maturity benefits make a life insurance policy into a savings plan or even a sound investment plan. Such life insurance policies with maturity benefits can not only financially help the nominee but also the policyholder. If you are keen on purchasing a life insurance policy, then the one with maturity benefits is always a good option.
However, before moving ahead with the purchase, you will need some vital information regarding the same. It will provide detailed input on the specific features of a life insurance policy with maturity benefits. Here you can get that critical information so read to increase your knowledge regarding such insurance policies.
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Life Insurance with Maturity Benefits
For the unversed, life insurance is a policy that gives life coverage and mortality benefits to the nominee during the policy term. But, life insurance with maturity benefits means that in case the policyholder survives the policy term, the insurer will return all the invested premium. Sometimes even with good interest rates.
Top 5 Useful Features of Life Insurance with Maturity Benefits
Some of the features of regular life insurance and life insurance with maturity benefits are the same. But life insurance with maturity benefits has some extra or enhanced features that make them more preferred. Given below are some valuable features of life insurance with maturity benefits.
Return of Premium
There are no maturity benefits in regular life insurance, only mortality benefits. It makes it a pure risk investment with half and half chances of obtaining returns. But as the life insurance policy has both mortality benefits during the term and maturity benefits at the term end, it is an assured investment. So, whether the policy has a claim or not, the nominee or the policyholder will have guaranteed returns.
Interest Rates
Sometimes the insurer also provides decent interest rates along with the return of investment. These interest rates are in the range of 5% to 10% making them more valuable than typical bank fixed deposit schemes. These interest rates make life insurance with maturity benefits a solid investment plan.
Higher Premium
Life insurance with maturity benefits has a higher interest rate than common life insurance. But this is not a matter of worry as the insurer will return the funds at the term-end. So, a policyholder can invest even a higher premium if they can afford it to increase the life cover and maturity benefits.
Higher Tax Savings
As the premiums are high, the policyholder can claim a higher tax relaxation for paying premiums. But as the income tax act caps the maximum relaxation amount at INR 1,50,000, it is not advisable to go beyond this limit only for tax-saving benefits.
Extra Covers
Life insurance with maturity benefits also allows adding several covers to the plan and increasing the benefits. Adding these covers can provide a plan with extensive coverage but at a cheaper rate. It was not possible in regular life insurance plans without maturity benefits as they only had one or two riders maximum.
You won’t have any trouble purchasing such plans now that you know a life insurance policy with maturity benefits. To make your purchase, customer support, and insurance benefits more valuable.