Term Insurance with Maturity Benefit

What is Term Insurance with Maturity Benefit?

Term Insurance with maturity benefit is a unique product that combines the core purpose of life protection with the added reassurance of a return on investment. Unlike regular term insurance, where no money is returned if you outlive your policy, this plan refunds the premiums you’ve paid (excluding taxes and charges) if you survive the policy term. Often referred to as a Term Return of Premium (TROP) plan, it offers peace of mind for risk-averse individuals who want life cover without the feeling of “losing” their money. While it’s more expensive than a standard term plan, the psychological benefit of receiving something back makes it a popular choice among conservative investors.

A term insurance with maturity benefit is a unique variant of traditional term insurance that provides life coverage along with a return of the premiums paid, if the insured survives the policy term. This structure provides financial security for loved ones. It offers a guaranteed refund of the premium, making it an appealing option for those hesitant about paying for insurance without a return on investment.

Unlike regular term plans that offer no payout if the policyholder survives the term, these plans, commonly known as Term Return of Premium (TROP) plans, bridge the gap between insurance and savings. While similar features can be found in some ULIP plans, those often come with higher charges, market risks, and complex structures that don’t always justify their cost.

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Term Insurance with Maturity Benefit: Overview

How Does Term Insurance with Maturity Benefit Work

Term insurance with maturity benefit operates on a simple premise: if the policyholder dies during the policy term, the nominee receives the sum assured (just like a standard term plan). However, if the policyholder survives the term, all the premiums paid (excluding GST and rider charges) are refunded.

This variant is commonly referred to as a Term Return of Premium (TROP) plan. It appeals to individuals who dislike the idea of “losing” their money if they survive the policy period.

Key Features of Term Insurance with Maturity Benefit

When selecting a life insurance policy, understanding its core features is crucial for making an informed decision.

1) Death Benefit

In the unfortunate event of the policyholder's death during the policy term, the nominee receives the sum assured as a death benefit. This ensures that the family remains financially protected and can maintain their standard of living even in the absence of the primary breadwinner.

2) Maturity Benefit

One of the key differentiators of this plan is the return of premiums. If the policyholder survives the entire policy term, the insurer returns all the base premiums paid (excluding taxes, rider premiums, etc.). This serves as a savings component, offering a lump sum at the end of the term that can be used to achieve future financial goals.

3) Flexible Premium Options

Just like standard term plans, these plans are designed to suit different financial needs and cash flow patterns. Policyholders can choose to pay premiums regularly (monthly/annually), opt for a limited premium payment term, or make a one-time lump sum payment. This flexibility enables the easy incorporation of insurance into diverse financial plans.

4) Tax Benefits

Same as standard term plans, policyholders can enjoy tax advantages under the Income Tax Act. Premiums paid are eligible for deductions under Section 80C (up to ₹1.5 lakh per annum under the old tax regime), and the maturity/death benefits received are exempt from tax under Section 10(10D), subject to prevailing conditions.

On a side note, what is the difference between GST rates for regular term plans vs ROP plans?

Why is GST lower for ROP plans?

The difference in GST rates is due to the nature of the plan and how the premium is treated:

Regular Term Plan:

Pure risk cover; there's no maturity benefit. It's classified purely as a protection service, which attracts the standard 18% GST applicable to insurance services.

ROP Term Plan:

Combines protection with a savings component (you get your premiums back if you survive the term). Under GST rules, insurance plans with maturity or savings benefits (like traditional endowment or ROP plans) fall under a different tax structure:

• 4.5% GST on first-year premium
• 2.25% GST on renewal premiums

This concessional rate reflects the investment-like component in these plans.

Benefits of Term Plans with Maturity Benefit

Now that you’re familiar with the fundamental features, let’s delve into the specific benefits these plans offer, both tangible and psychological, that go beyond basic financial protection.

1) Dual Advantage: Offers protection and savings in a single product

Unlike traditional term insurance plans, which only pay out upon the policyholder's death, a term plan with maturity benefit provides both life cover and a return of premiums if the policyholder survives. This dual advantage makes them suitable for people who want insurance coverage without the feeling of "losing" money in case they outlive the term.

2) No Loss Perception: You get your money back if you outlive your policy

For many policyholders, the idea of paying premiums without a return can be discouraging. This plan addresses that concern by returning all base premiums upon maturity, thus eliminating the psychological barrier of sunk costs. It instills a sense of financial reassurance even if the insurance cover is not utilized.

That said, it’s essential to view these benefits in context. While the return of premiums can feel rewarding, the value of the money returned may be significantly diminished due to inflation. The amount received at the end of the policy term holds the same nominal value but likely reduced purchasing power. So, while the emotional and psychological returns are real, the actual financial gain may be minimal in real terms. Let’s explore the drawbacks in greater detail.

Drawbacks of Term Plans with Maturity Benefits

While Term Insurance with Maturity Benefit offers emotional reassurance and a guaranteed refund, it’s essential to consider the trade-offs before committing.

1) Significantly Higher Premiums

TROP plans can cost 70-100% more than pure term plans. This additional amount is paid solely to recover your own money, without any interest or growth.

2) Zero Investment Growth

The premiums refunded at maturity are not reinvested or allowed to grow over time. You get back what you paid, but as discussed previously, inflation reduces its real value. For example, ₹7.5 lakhs received after 30 years won’t buy nearly as much as it would today.

3) Poor Returns Compared to Alternatives

If the premium difference were instead invested in mutual funds, PPF, or fixed deposits, your corpus could grow 2x to 4x larger than what you’d get from a TROP plan.

4) Locked-in Capital with Low Flexibility

Your money remains locked in for decades, with no liquidity. In contrast, investments like SIPs offer flexibility and access when needed, whether for emergencies, goals, or course corrections.

5) Psychological Benefit is More Than the Financial Benefit

These plans mainly cater to the need for emotional comfort. From a purely financial lens, they’re inefficient and don’t offer real wealth creation.

Now that we've explored the benefits and drawbacks, it’s equally important to assess whether term insurance with maturity benefit is the right fit for your financial strategy. Let’s examine when and for whom this type of plan makes the most sense.

Who Should Consider TROP?

While Term Return of Premium (TROP) plans offer a blend of protection and perceived savings, they are not a one-size-fits-all solution. These plans are tailored to a specific audience with distinct financial behaviors and preferences. Understanding who might benefit the most from a TROP policy can help you decide whether it aligns with your overall financial goals.

1) Risk-Averse Individuals

TROP plans are ideal for individuals who are uncomfortable with the idea of paying premiums for years without any tangible return. These policyholders often value the certainty of getting something back, even if the actual return is low. The plan appeals to their need for financial closure and a sense of "value" received, which pure term plans may not offer.

2) People With a Strong Return Expectation

Some individuals equate insurance with investment and expect to see a return on their contributions. For them, a standard term plan may feel incomplete. TROP bridges this gap by offering a return of premiums at the end of the term, satisfying the expectation of a payout even in the absence of a claim.

However, it's essential to recognize the broader financial implications. From a strictly monetary standpoint, very few should opt for TROP. The returns are typically low compared to alternative investments, and the premiums are significantly higher than those for pure term plans. The primary appeal lies in the psychological comfort of not "losing" money, rather than in maximizing financial efficiency or returns.

Riders to Enhance TROP Plans

While Term Return of Premium (TROP) plans offer a solid foundation of life coverage and the psychological comfort of maturity benefits, they can be further increased with optional riders. Riders are additional benefits that can be attached to your base policy for a slightly higher premium, providing extra layers of financial security in specific scenarios. Here are some key riders that can significantly improve the value of your TROP plan:

1) Critical Illness Rider

This rider provides a lump sum payout if the insured is diagnosed with any of the listed critical illnesses, such as cancer, heart attack, or stroke. The payout can be used to cover medical expenses, loss of income, or lifestyle changes resulting from the illness. It helps ensure that a severe health condition doesn’t derail your finances.

2) Accidental Total and Permanent Disability Rider

If the policyholder suffers a total and permanent disability resulting from an accident, this rider provides a financial payout. This can help cover the loss of income and potential long-term care costs. It’s beneficial for those in high-risk professions or individuals who are the primary earners in their families.

3) Waiver of Premium Rider

Suppose the policyholder is unable to continue working due to a serious illness or permanent disability. In that case, this rider ensures that all future premiums are waived as long as the policy remains in force. This helps maintain life cover without the burden of premium payments during financially challenging times.

Adding riders to your TROP plan enables tailored protection tailored to your lifestyle, health risks, and financial priorities. While these enhancements come at a cost, the additional security they offer during critical life events can far outweigh the extra premiums. Always assess your circumstances and consult an advisor to select riders that effectively complement your coverage needs.

Best Term Insurance Plans with Maturity Benefits in India (2025)

Here's an overview of some of the best Term Return of Premium (TROP) plans available in India as of 2025, highlighting key details about each insurer:

1) HDFC Life Click2Protect Super 

HDFC Life's Click 2 Protect Super is a versatile term insurance plan that offers comprehensive coverage with the option to add a Return of Premium (ROP) rider. This rider ensures that if the policyholder survives the policy term, all base premiums paid are returned. The plan offers flexibility in premium payment terms and policy durations, catering to a diverse range of financial needs. 

2) ICICI Prudential iProtect Return of Premium

This is one of the few plans where the Return of Premium is built into the base product (not an add-on). It provides a full refund of premiums at maturity, making it a good fit for those who view insurance as a long-term commitment and prefer guaranteed outcomes. ICICI also offers optional features, such as income payout and critical illness add-ons, which add value for conservative planners.

3) Axis Max Life Smart Term Plan Plus 

Axis Max Life's Smart Term Plan Plus offers a Return of Premium variant that returns 100% of the total premiums paid at the end of the policy term, provided the policyholder survives. The plan also includes features such as premium breaks and flexible policy terms, which increase its appeal. For those seeking structured returns without investing in market-linked products, this plan provides emotional assurance, albeit at a higher annual cost. 

4) Bajaj Allianz Life eTouch II

Bajaj Allianz Life's eTouch II is a non-linked, non-participating term insurance plan that offers a Return of Premium variant. This variant provides a maturity benefit equal to the total premiums paid, excluding taxes and extra premiums, if the policyholder survives the policy term. The plan also offers flexibility in premium payment terms and the option to skip premiums for a specified period. 

5) Tata AIA Sampoorn Raksha Promise 

This plan’s ROP variant ensures full refund of premiums on survival and is tailored for long-term planners who value certainty. Tata AIA also offers flexible payment terms and additional optional riders, but the key selling point here is the guaranteed maturity benefit from a highly reputable insurer. It’s positioned well for those with a low risk appetite who want a "return-backed" term plan.

Each of these plans offers unique features and benefits, catering to the diverse needs of customers. It's essential to assess your individual needs and consult with a financial advisor to choose a plan that best aligns with your financial goals and protection requirements.

Now that we’ve looked at the best term insurance with maturity benefit plans, it’s helpful to compare TROP with other popular life insurance options to understand where each one stands in terms of cost, returns, and suitability.

Term Plan vs TROP vs Endowment Plans

When selecting a life insurance plan, it's crucial to align the plan type with your financial objectives. While all three —Term Plans, Term Return of Premium (TROP), and Endowment Plans —offer life insurance coverage, they differ significantly in terms of structure, cost, and returns. Here's a quick breakdown of how they compare:

More innovative Alternative: Term Plan + Investment

A more financially sound approach could be to combine a low-cost Term Plan with separate investments, such as Systematic Investment Plans (SIPs) in mutual funds, Public Provident Fund (PPF), National Pension System (NPS), or even fixed deposits. By saving significantly on insurance premiums and investing that difference:

• You gain higher returns through mutual funds (8-12% in equity and 6-7% in debt, historically).
• You maintain greater liquidity, as the investments aren’t locked for decades.
• You retain flexibility, allowing you to adjust or rebalance your portfolio according to your life goals and market conditions.

For example:

TROP vs. Pure Term + SIP (Over 30 Years)

Option 1: Term Plan with Return of Premium (TROP)

Annual premium: ₹25,000

Policy term: 30 years

Total paid: ₹25,000 × 30 = ₹7,50,000

Maturity benefit (if you survive the term): ₹7,50,000 (no interest or investment growth)

Life cover: ₹1 crore (for 30 years)

Option 2: Pure Term Plan + Mutual Fund SIP

Pure term plan premium: ₹15,000/year

SIP investment: ₹10,000/year (₹833/month)

Total outgo per year: ₹25,000 → same as TROP

Total SIP investment over 30 years: ₹10,000 × 30 = ₹3,00,000

Annual Return Rate Estimated Corpus After 30 Years

For 12% = ₹29.40 lakhs

For 8% = ₹12.5 lakhs

For 6% = ₹8.41 lakhs

Here’s how to interpret it:

Even at 6% returns, you earn ₹90k lakhs extra over what TROP returns (₹7.5 lakhs). At 8%, the corpus already outpaces TROP by over 50%. At 12%, the SIP strategy gives you nearly 4x the maturity benefit of a TROP plan.

The opportunity cost of choosing a TROP over a pure term plan + SIP strategy is substantial when you consider what you’re potentially giving up:

• Zero investment growth: With a TROP, you simply get back what you put in there. There is no compounding and no real return on your investment. The ₹7.5 lakhs you receive after 30 years has significantly less value when adjusted for inflation.
• Lost compounding potential: By locking ₹10,000/year into the insurance company (which just returns it without any interest), you're missing out on decades of potential growth. Even a conservative return of 8% could grow that amount to over ₹12.5 lakhs. That’s over ₹5 lakhs in lost opportunity, simply for the psychological comfort of getting your premium back.
• Reduced financial flexibility: Money in a TROP is locked for the entire policy duration (often 30 years). With SIPs or diversified investments, you can access or adjust your portfolio anytime to respond to life events, emergencies, or changing financial goals.
• Inflation erodes TROP value: ₹7.5 lakhs in 30 years will be worth far less in today’s terms. In contrast, investments tied to inflation-beating assets (like equity mutual funds) help preserve and grow your tangible wealth.

To conclude, while TROP and endowment plans cater to risk-averse individuals seeking guaranteed returns, they often fall short in terms of actual wealth creation. A combination of term insurance and smart investing typically offers superior value, particularly for financially savvy individuals seeking to balance protection with growth.

That said, if you’re still looking for a middle ground between affordability and getting your premiums back, there’s another option worth exploring: Zero-cost term plans.

TROP vs Zero Cost Term Plans

Zero-cost term plans offer policyholders the unique benefit of exiting the policy at a predetermined stage (often after 30-40 years) and receiving a full refund of the premiums paid (minus the applicable taxes). This feature provides a safety net for policyholders who may no longer require coverage due to changing life circumstances, such as the completion of financial obligations like home loans or children's education.

Why are Zero-Cost Term Plans Better Than ROP Plans?

1. Cost Efficiency: 
   Zero Cost Term Plans offer the refund feature without the significant premium increase associated with ROP plans, allowing policyholders to allocate funds elsewhere for potentially higher returns.
2. Financial Flexibility: 
   The option to exit the policy and receive a refund offers financial flexibility, especially for those nearing retirement or with no dependents.
3. Simplified Decision-Making: 
   With Zero Cost Term Plans, policyholders can decide on the refund option later in the policy term, allowing them time to assess their financial situation and needs.

However, there are still a few considerations you should keep in mind before opting for zero-cost term plans:

1. Exit Window: 
   The refund option is available only during a specific window towards the end of the policy term. Missing this window may result in the loss of the refund benefit.
2. Policy Terms: 
   These plans often require a long-term commitment, typically spanning 30 to 40 years, which may not align with everyone's financial planning goals.
3. Inflation Impact: 
   The refund amount may not account for inflation, which could reduce its real value over time.

In conclusion, Zero-Cost Term Plans offer a balanced approach to life insurance, combining the affordability of standard term plans with the added benefit of a refund option. They are particularly advantageous for individuals seeking long-term coverage with the flexibility to exit the policy and reclaim premiums paid, without the higher costs associated with ROP plans. The best part? Most comprehensive term plans already offer zero-cost features without taking any additional charge.

Ditto’s Take on Term Insurance with Maturity Benefit

While TROP plans offer the comfort of receiving your premiums back if you survive the policy term, that peace of mind comes at a significant cost. On average, premiums for TROP plans are nearly 1.7 to 2 times higher than those of pure term insurance. This price gap can have a significant impact on your long-term financial planning, especially when evaluating the cost versus the benefit.

Let’s take some examples for comparison.

Note: For premium calculation, we’ve taken the example of a non-smoking 30-year-old male with coverage of ₹1 crore until the age of 65.

Disclaimer: These premiums are indicative and subject to periodic revision. 

That’s an additional ₹8,000–₹10,000 annually or even double in some cases, money that could otherwise be invested for better returns.

As mentioned above, a better alternative would be to protect yourself with a term plan while investing the remaining amount. You can consider this strategy:

Step 1: Buy a low-cost pure term plan for solid life coverage.

Step 2: Use tools like Ditto’s Cover Calculator to determine the correct sum assured based on your income and liabilities.

Step 3: Compare the premium difference between a term plan and a TROP plan.

Step 4: Invest that difference in mutual funds through SIPs or fixed deposits.

Over 20 to 30 years, even conservative investment returns can outpace the maturity benefit received from a TROP plan, with the added advantage of liquidity, control, and potential capital growth.

To conclude, TROP plans are best suited for those who prioritize emotional reassurance and guaranteed returns. However, if your goal is to maximize value and grow wealth while securing your family's future, pairing a pure term plan with disciplined investing often delivers better outcomes, both in terms of returns and flexibility.

Conclusion

Term Insurance with Maturity Benefit bridges the gap between pure protection and the desire for returns. For those who value emotional reassurance and guaranteed payouts, TROP plans can be a suitable option. However, the higher premium cost often makes them less efficient for wealth creation compared to a pure term insurance plan, combined with smart investments such as Systematic Investment Plans (SIPs) or Fixed Deposits (FDs).  

While maturity benefit in life insurance offers peace of mind, it's essential to weigh that against opportunity costs and inflation. For long-term value and flexibility, a life insurance with maturity benefit should ideally be part of a broader financial strategy, not the sole pillar. Always align your insurance choice with your financial goals, risk tolerance, and future aspirations.

FAQs

Life insurance products, although a necessary financial tool, are never easy purchase/sell. As policyholders, purchasing a life insurance plan means that you are getting financially prepared in case you pass away during the tenure of the policy. But what if, by God’s grace, you do survive the policy?

Imagine this -

Rohit is a 30-year-old non-smoker who purchased a term insurance policy and kept his spouse as his beneficiary. He used the free calculator to calculate his ideal term insurance coverage and opted for a ₹1 crore policy till he turned 65 years old. His premiums come to ₹₹12k - ₹16k. Now, thanks to his healthy lifestyle and great luck, he stands strong at 65 years old. Now, while his family wasn’t deprived of his presence, he made a smart financial move by staying financially prepped for the “chance” situation.

However, now that he has survived the term policy tenure, he can’t help but wonder, “What did I get from this coverage? Was it too much of a loss?”

Now, it’s true that he has enjoyed a financial shield that would have kicked in in case he passed away by 65, but since he hasn’t, such doubts are inevitable.

To cater to such questions and boost the purchase of term insurance policies, insurers now offer an added feature: maturity benefits as a term insurance rider. Usually, by definition, term insurance plans do not provide any returns, and this includes the maturity perk. However, to compete with the growing popularity of ULIPs and Endowment policies and the evolving financial requirements of existing and potential policyholders, providers now also offer term insurance plans with maturity benefits (or Return of Premiums).

The most important question is, should you opt for term insurance policies with maturity benefits? What are the best term insurance plans offering maturity benefits? Here’s all you need to know about these policies!

Best Term Insurance Plans with Maturity Benefits

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What are Term Insurance Plans with Maturity Benefits?

Term insurance plans with maturity benefits offer a unique perk of reimbursing all your premiums, excluding the GST and the rider premium, provided you survive the policy tenure.

Now, this can be a pretty lucrative and value-worthy term insurance rider, considering that you have opted for a term insurance policy to cover you until you are 65 or 70 years old. This makes sense because you have a higher life expectancy under such an age slab. This partially ensures that you get the return of the premiums.

On the flip side, think of this - why would a top-notch term insurance provider offer you this return? Considering the term insurance premiums may add up to lakhs (taking the example from before ₹16k * 35 years = ₹5.6 lakhs approximately), why would the insurers offer you such high returns, thereby increasing and almost assuring a higher risk of payouts?

Well, the answer is simple: in the case of the Return of Premium Riders, the overall term insurance premium amount goes up substantially. Whether this spike in premiums outweighs the savings made over the return of premiums or not is a customised choice for policyholders. You must also consider your current financial bandwidth and check if you can afford that high premium or would rather spend the additional amount towards an investment channel or the base premium to get a higher cover.

What are the Best Term Insurance Plans with Maturity Benefits?

Let’s say you have finalised upon opting for a Return of Premium rider with your term insurance policy. Under such circumstances, you will need to spot the best term insurance plan offering a Return of Premium Rider. Here’s how to do this -

1. Finalise upon a credible term insurance provider: Since, in the case of term insurance policies, you are dealing with a substantial sum assured that would act as your income replacement in the case of your unfortunate absence, you need a credible insurer that offers you a hassle-free claim settlement process. So, check these factors before finalising a term insurance provider - a Claim Settlement Ratio of 97% and above, an Amount Settlement Ratio of 90% and above, and a low complaint volume.
2. Select the perfect term insurance plan: While prioritising the Return of Premium Rider as a feature of your term insurance policy, that can’t be the only feature you compare when choosing a plan. You must also ensure that the policy has a few crucial features like - inbuilt terminal illness benefit, substantial coverage at affordable premiums, and value-worthy riders like Critical Illness Benefit, Waiver of Premium, Accidental Death Benefit, Accidental Total and Permanent Disability Rider, Life Stage Benefit, and Increasing/Decreasing Cover Rider.

Accordingly, here’s a look at the best term insurance policies with maturity benefits -

1. HDFC Life Click2Protect Super: Click2Protect Super is a term insurance policy known for customisation options. The plan is comprehensive, and HDFC's strong reputation contributes to its inclusion in our list of recommended plans.

Key features of the plan include:

• Critical Illness Benefit: Provides an additional sum if diagnosed with any of the listed critical ailments, which can be used for treatment, savings, and more.
• Zero Cost Option: If you choose to forgo your policy on a specified date, this rider will return your premiums in full (minus GST).
• Accidental Death Benefit: Provides an additional sum to the family if the policyholder's death is due to an accident.
• Inflation Protection: Increases your coverage amount in line with the inflation rate.
• Waiver of Premium: Waives the need to pay premiums if you become permanently incapacitated or suffer from a critical ailment.
• Total Permanent Disability Benefit: If you are permanently disabled, this benefit provides a lump sum or monthly instalments, ensuring the smooth running of daily household expenses.

Drawbacks: Like other HDFC plans, this policy is relatively expensive.

2. Max Life Smart Secure Plus: Smart Secure Plus from Max Life is arguably the best term insurance policy available. It offers a wide range of riders for maximum customisation, and the insurer's strong reputation in the industry makes this plan particularly popular.

Key features of the plan include:

• Voluntary Top-Up Sum Assured Option: Allows you to increase your coverage up to 100% when needed, unlike many other term insurance plans.
• Inflation Shield: This rider ensures your coverage amount grows in line with year-on-year inflation.
• Critical Illness Benefit: Covers multiple critical ailments, providing additional coverage if diagnosed with any of these conditions.
• Terminal Illness Benefit: Offers an additional amount beyond the sum assured if diagnosed with a terminal condition.
• Return of Premium: If you survive the policy term, the insurer will return the accrued premium as a Special Exit Value.
• Accident Cover: Provides an additional death benefit if the policyholder dies due to an accident.
• Waiver of Premium Plus Rider: Waives premiums in case of disability or critical illness, keeping the policy active.

Drawbacks: We couldn’t identify any significant drawbacks to this plan, making it one of our top recommendations.

3. Bajaj Allianz Smart Protect Goal: Bajaj Allianz Smart Protect Goal is a cost-effective choice for those seeking extensive coverage. The plan includes several riders and unique benefits, such as relatively lower premiums for smokers compared to industry standards. However, it lacks some essential features like the Zero Cost Option.

Key highlights of the plan include:

• Critical Illness Benefit: Covers 55 critical ailments. If diagnosed with any of these, you receive an additional amount to use as needed. Note that there is a 180-day waiting period for this benefit.
• Return of Premiums: If you survive the term of the Bajaj Allianz Smart Protect Goal, you get a full return of your paid premiums.
• Whole Life Cover: Provides financial protection until the age of 99.

Drawbacks: However, the policy has some drawbacks, including the absence of the Zero Cost Option, Waiver of Premium, Inflation Shield, Accidental Death Benefit, Terminal Illness Benefit, and options to enhance coverage as needed.

4. TATA AIA Sampoorna Raksha Supreme: TATA AIA Sampoorna Raksha Supreme is among the most affordable plans available. The policy offers excellent riders for customisation, coupled with TATA AIA’s strong industry reputation, making it an outstanding choice.

Key features of the plan include:

• Life Stage Benefit: Allows you to increase your coverage for significant life events, a notable advantage as most term insurers do not allow changes to existing plans.
• Criticare Plus Benefit: Provides additional coverage if diagnosed with any of 40 critical ailments on the insurer's list.
• Whole Life Cover: Offers coverage until age 100, though it may not be necessary as dependents will likely be financially reliant by then.
• Top-Up Sum Assured: This increases the base amount by 5% on every policy anniversary, given that the premium payment term is at least five years.
• Terminal Illness Benefit: Provides a lump sum of up to 50% of the base sum assured upon diagnosis of a terminal condition, known as the Payor Accelerator Benefit.
• Lower Premium for Women: Offers discounted premiums for women policyholders.
• Wellness Program: Includes a discount on first-year rider premiums and complimentary annual health check-ups.
• Return of Premium: Returns the accumulated premium as a Special Exit Value if you survive the policy duration.

Drawbacks: None

Should You Buy Term Insurance Plans with Maturity Benefits?

Honestly speaking, no.

Hear us out - while term insurance policies with maturity benefits sound like an incredible perk and value-worthy, it’s not. First, term insurance plans are primarily popular because of their affordability. If your premiums become too high, it defeats the purpose. Secondly, the accrued premium margin becomes a complete waste if the policyholder dies during the plan's tenure.

We recommend purchasing pocket-friendly vanilla term insurance policies and opt for lucrative riders like Critical Illness Benefits, Waiver of Premium, and Life Stage Benefits.

What is the difference between zero cost and maturity benefits in term insurance?

Zero Cost term insurance plans have been quite the marketed rider for most term insurance plans. And by definition, it sounds much like a maturity benefit. However, there’s a slight difference -

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Conclusion

Term insurance plans with maturity benefits have become a popular financial product among existing and potential policyholders. However, once you weigh the advantages and disadvantages of term insurance policies with maturity benefits, you will soon realise that opting for Return of Premium Rider is not a smart financial move. You would be paying pretty high premiums that could affect your financial health.