Term Insurance with Return on Premium

Assured returns: There are many life insurance plans that offer returns, but the returns in many cases are market-linked and are not guaranteed. A term insurance with returns of premium policy offers guaranteed returns. With assured returns, you can plan accordingly. One can use the lump-sum amount received at maturity to buy a car or to renovate his./her house. Having a clear picture of the returns helps in financial planning.

Survival benefit: Contrary to a regular term insurance plan, term insurance with return of premium offers survival benefits. If the insured outlives the plan, he/she is eligible to get back all the premiums paid during policy term. It is an ideal product for people who do not want to lose out on the premiums and want some kind of return from the policy.

Rider benefit: Policyholders can choose to enhance the insurance cover with optional riders. Optional riders can be taken to cover accidental death, accidental disability and critical illnesses. A term insurance plan with return of premium with suitable riders provides comprehensive coverage at affordable rates.

Tax benefits: Investing in a term insurance with return of premium offers the policyholder the opportunity to reduce his/her tax liabilities. The premiums paid for the policy are eligible for tax deductions of up to Rs 1.5 lakh per annum under Section 80C of the Income Tax Act, 1961. The payout is exempt from income tax under Section 10 (10D) of the tax laws.