Two-In-One Advantage

Two-In-One Advantage: Why You Need Term Plan With Return Of Premium


Buying term plan insurance is a fundamental necessity for a person today. It helps a person build and protect their finances in a way that sustains them not only in the present but also in the future. A term plan is one of the ways to achieve that security, where a person is able to ensure the protection of those dependent them; by choosing to insure themselves in the event of their death or illness. 

A term life insurance policy is made to effectively cover the needs of the insured and their dependents through an assured death benefit sum in the event of the policyholder’s demise. A basic term insurance plan in India is considered to be one of the most affordable means of securing one’s future where premiums are low and one can customise their coverage, add riders and choose payout patterns according to their needs.

There are several combinations and types of term insurance plans[1] available for a policyholder to choose from today; from a personal term plan to a group term life insurance there are many online resources that are evolving with measurement metrics to help compare plans across insurance providers and their best customisable versions. 

Term Plan with Return of Premium

Since markets are replete with plans, costs and variables; a new policyholder can feel intimidated by the details and clauses respective life insurance plans. Insurance and premium costs can also be difficult to navigate or expensive for many, but it helps to understand they ways in which one can avail their returns and insurance coverage through specific features like a term plan with return of premium

A term plan with return of premium is an asset, which can help one to secure or pay off loans in the long run, even in the absence of the primary income earner. It is a resource to be used at times when unavoidable financial expenses have to be met by the surviving beneficiaries in the absence of the policyholder. To find a term plan that is able to fulfil one’s investment needs is a requirement many investors actively seek today. It is a bonus in many ways, as a policyholder is able to avail their insurance coverage, benefits while also acquiring a monetary sum from the plan. While term plans are mostly directed towards the beneficiaries of the insured to receive an assured sum on their demise, a provision for the return of premiums can also be availed. 

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Since standard term insurance policies do not provide any maturity benefits in the event the insured survives the policy tenure, one can go for a term plan with return of premium that has the option of returning a policyholder’s invested total premium amount at the end of the term if they survive. 

The Return of Premium when coupled with the benefits of a maturity benefit causes the insurance policy to become a sizeable and smart investment return which is complete with all insurance coverage. The life cover which protects the insured during the policy tenure, and the monetary benefit they receive at the end of it become an end-to-end solution to an investor’s financial needs. 

Term Plan with Return of Premium

Let us look at some of the benefits of opting for a term plan with return of premium:

  1. Return of Premium Benefit: As aforementioned, when a policyholder invests in a term plan with return of premium and survives the policy tenure, the insurance provider is liable to pay the premiums back to the insured. Since the premiums that were paid were over an extended period of time, the sum that comes back to the insured is a significant corpus that can be used to meet their financial goals respectively. 
  2. Sum Assured Benefit: If a term plan with return of premium is then supplemented by coverage from riders such as accident death or disability, the returned premium corpus and the benefit from the rider can be a strong financial cushion for the beneficiaries or the insured during financial distress. 
  3. Tax Benefits: Since term plans and financial security are universal necessities, the premiums paid for a term insurance plan and the payout sum thus received from the same at the time of maturity is exempted from taxation under Section 80C and 10(10D) of the Income Tax Act, 1961[2]. Thus investing in a term plan with return of premium can enable an insured person avail tax exemptions through smart financial decisions. 
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Therefore, one should consciously take a term plan with return of premiums into consideration when they seek investment returns as well, as it can aid financial planning and coverage for a person’s foreseeable future. If one is well-equipped with their finances and visibility before purchasing, with renowned insurance providers like Max Life Insurance, they can find the best term plan with return of premium in India with little effort. Their plans span across fulfilling the needs of people through additional benefits like easy premium payments till 60 and more. 

To explore further, you can reach out to financial advisors over at Max Life Insurance who will provide assistance through every decision and feature before you commit towards safeguarding your future. 

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