Term Insurance Maturity Benefits: A Comprehensive Guide

Financial stability is one of the important requirements for any person today. Investing in a secure future is a priority; Thus, the popularity of various insurance policies is increasing.

Among the various policies, term insurance is one of the top choices. It provides guaranteed financial backup in your absence. Moreover, it is now easier than ever to choose between the various term insurance policies available with the help of term insurance premium calculator, making it a good investment for a better tomorrow.

Many people believe that the benefits of term insurance are limited to death benefit only. However, this is not entirely true. There are many term insurance maturity benefits that make investing in term insurance easier.

If you are not aware of these benefits, this article will help you understand.

All about term insurance plans

There are two different types of term insurance policies available today, a basic term insurance policy and a basic term insurance plan with maturity benefit. The basic plan will provide financial support to the family members and maturity benefit to the policyholder.

  • Basic Term Insurance- Under this, policyholders get the benefit of complete protection through life cover to help their family with financial expenses after death. It is an investment for a better future of your family members.
  • Term Insurance with Maturity Benefit- Some term insurance plans offer certain benefits to policyholders in addition to the basic term insurance. These include term insurance plans with return of premium option.

Simply put, the premium amount paid by you during the pre-determined term for the policy is given back to you as maturity benefit if you survive the policy term.

Why Choose Term Insurance Maturity Benefit?

If you want to invest in a term insurance plan with maturity benefit, here are some essential features to remember.

  1. Anyone between 18 and 65 years of age can buy a term insurance plan with maturity benefit, making it an ideal option for newly married couples, new parents, self-employed individuals, housewives, etc.
  2. Term insurance with maturity benefit lets you choose your payment option. You can choose between a single, regular or fixed time premium payment and spread it over annual, monthly or quarterly payments.
  3. As an added benefit of surviving a period, you get the policy maturity benefit, which can be used as a financial backup for your second innings of life.
  4. When you choose term insurance with maturity benefit, you get the benefit of life cover and a fixed amount of your premium as savings for surviving the policy term. This way, you get guaranteed savings for a better future while leaving a financial blanket for your family members in the event of your absence.
  5. Future expenses, like child’s education, buying a house, etc., are pre-planned. Policyholders looking to meet such expenses later can benefit from advanced financial planning with the help of term insurance with maturity benefits. The premium payment paid to the policyholder can help meet these financial needs in the future.
  6. Term insurance plans with maturity benefit offer a variety of tax benefits under Section 10 (10D) of the Income Tax Act. With this, you can avail tax exemption on the amount earned under maturity benefit.


Term insurance can be of vital assistance to your family members in the unfortunate event of your death. However, by adding maturity benefits to your term insurance plan and choosing investments in the return of premium category, you are also adding a financial safety net for yourself for the future.

To decide between multiple term insurance plans, you need to understand your financial goals, future spending plans and budget for investments. Next, read the terms and conditions and choose the one that best meets your needs.