Term Plan with Return of Premium
Term insurance is a type of life insurance policy. In term insurance plan, if the policyholder dies during the policy term, financial security is provided to the family of the policyholder by way of insurance benefits.
Through a term insurance plan, the policyholder can secure the financial future of his family in his absence. The insurance benefit that the nominee receives after the death of the policyholder is able to meet the financial needs of the family. Also, if any kind of loan has been taken by the policyholder side, then it is also compensated through the sum insured.
A term insurance plan offers you maximum coverage at low premiums. It is to be noted that no maturity benefit is available in a pure term insurance policy. If the policyholder survives till the completion of the policy term then no benefit is provided to him.
What Is Term Plan With Return Of Premium Term Plan?
As we mentioned above, in a term insurance plan, if the policyholder survives till the completion of the policy term, then he does not get any benefit. But if you want a return of your premium on completion of your term plan, then you can choose a term plan with return of premium plan.
A term plan with return of premium is similar to a term insurance plan that provides financial protection to the family of the policyholder in case of death of the policyholder during the policy term. Also, if the policyholder survives till the completion of the policy term, then all the premiums paid by him are returned as a benefit.
Thus, in a term plan with return of premium, you not only get the death benefit if the policyholder dies during the policy term, but also get the double benefit of getting back your premiums at the end of the policy term.
It is worth noting that you have to pay a little extra premium to avail Term Plan with Return of Premium facility. You can get your premium back through Term Plan with Return of Premium by paying additional premium.
How Does A Term Plan With Return Of Premium Term Plan Work?
Term Plan with Return of Premium provides you additional benefits by providing you term insurance coverage as well as giving you the option of returning the premiums you have paid for the term plan.
In term plans, you can choose the frequency of premium payment as per your convenience. If you wish, you can choose to pay your premium annually, half-yearly, quarterly or monthly or through a single payment for your term plan premium.
If the policyholder dies during the policy term, the sum assured is provided as death benefit to the family members of the policyholder. If the policyholder survives the policy term, all the premiums paid by him are returned.
The policyholder can choose to receive this refundable premium payment as a lump sum or as an income option. It depends on the policyholder’s choice which of these options he/she chooses.
- Read Also Open an Account in HDFC Bank
Features Of Term Plan With Return Of Premium Term Plan
Following are the features of Term Plan with Return of Premium Term Plan :
- Policy Term:
With Term Plan with Return of Premium, you get a comprehensive life protection insurance coverage when you buy a term plan. You can avail life cover in this term plan for whole life i.e. up to 100 years. Through this you can ensure the financial security of your family for the rest of your life.
- Policy Revival:
If for any reason you are unable to pay the premiums for your term insurance plan, you get a chance to revive your policy. You can revive your term plan for a period of 5 years from the last premium paid. For this, you have to pay the premium as well as additional charges during this period.
- Dual Benefits:
Term plan with return of premium In term insurance plan, the policyholder gets maturity benefit along with the death benefit. If the policyholder dies, the death benefit is provided to the nominee and if the policyholder survives the policy term, he or she is provided with the return of premium.
- Premium Payment Term:
You get multiple options for paying premiums in term plan with return of premium term insurance plan. You can choose to pay your premium payments as monthly, quarterly, half-yearly, annually or as a single premium payment. This happens as per your convenience. You can choose any duration.
- Flexible Payment Options:
Term Plan Term Plan with Return of Premium Term insurance plan gives you flexible payment options. You can choose to receive the benefits through your term plan as a lump sum or as a monthly income. It depends on the policyholder’s choice which of these options he/she chooses.
- Riders:
You also get the option of adding riders to the term plan with return of premium term insurance plan. Through this, you can increase your term insurance coverage as per your convenience. However, you have to pay some additional premium for adding the rider. But through this you can enjoy covers like medical expense benefits by increasing the coverage of your termination.
Term Plan With Return Of Premium Benefits Of Term Plan
Following are the benefits of Term Plan with Return of Premium Term Plan :
- Life Cover:
Term plan with return of premium In term insurance plan, you get life coverage for the whole life. You can secure your family’s financial future in your absence for the rest of your life through this term plan.
- Return of Premium:
Term Plan with Return of Premium In term insurance, all the premiums paid by you are returned on completion of the policy term. Thus, you get the benefit of return of premium along with death benefit in a term plan with return of premium term insurance plan. It gives you dual benefits in a single term insurance plan.
- Death Benefit:
Similar to term insurance plans, term plan with return of premium offers death benefit to the nominee in case the policyholder dies during the policy term. The family of the policyholder can easily meet their financial requirements by using the sum assured received in the form of this death benefit.
- Tax Benefits:
You are also provided with tax benefits in term plan with return of premium term insurance plan. You can get tax benefits under income tax rules.