Know how
Term Plans
just got smarter..!
-Sanjay Tiwari,
Director- Product Management and
Customer Service, Exide Life Insurance
·
Term plans offer financial protection to your family in the event
when you are not around.
·
Term Plans usually offer large sum assured during the policy term
at a reasonable premium amount. At the end of policy term, no maturity benefit
is paid to you.
· Term Plans with return of premium offer financial protection
during the policy term and return all premiums paid by you at the end of the
policy term.
Term insurance plans are the least
expensive among life insurance plans. They are based on a simple logic: a
person buys the policy with a certain life insurance cover; and in case of
unfortunate demise of policyholder during the policy term, the family gets the
amount equal to the life insurance cover. You don’t receive any maturity
benefit on completion of your policy term.
If you are looking at a reasonable life
insurance cover; and are also particular about getting your money back on
completion of policy term, then you should consider the smarter variant of term
insurance plans that offer return of premium. Term Insurance Plans with Return
of Premium (or TROPs), as they are popularly known, offer financial protection
to your family during the policy term and return all premiums paid by you at
the end of the policy term.
Let’s understand the concept of ‘Term
Insurance Plans with Return of Premium’ with an example. If a policyholder pays
a yearly premium of ₹10,000 for a policy term of 20 years to get a life
insurance cover of ₹50 lakh, then the total premium that he would pay over the
entire policy term will be ₹2,00,000.
On completion of the policy term, the
policyholder will received 100% of the premiums paid as maturity benefit.
However, in case of unfortunate demise of the policyholder during policy term,
₹50 lakh will be paid to his family. A perfect example of this is the Classic
variant of Exide Life Smart Term Plan, which returns 100% of premiums paid, in case the
policyholder outlives the policy period.
Tax benefits on premium paid and payout
received
Premiums paid during the policy term
and the premium returned (maturity benefit) at the end of policy period is tax
free.
Giving you the dual benefit of life
insurance cover and return of premium at the end of policy term, these plans
are suitable if you want more than just life insurance cover. So secure your
family’s future with Exide Life Smart Term Plan with Return of Premium.