I have a term policy, which I took a few weeks ago. What does one get on maturity of this policy?
A basic term policy is one in which if the insured person survives the term, then he would not get anything
I have a term policy, which I took a few weeks ago. What does one get on maturity of this policy?
Kailash Tripathi, Lucknow
It is good to note that you have a term insurance plan, which cost less and are mostly pure risk cover, because they do not have any savings or investments linked to them. A basic term policy is one in which if you, the insured person survives the term, then normally you would not get anything. However, if you were to die during the policy tenure, your legal beneficiaries would get the sum assured mentioned in the policy. These days there are term plans with a return on premium option – these are available at a marginally higher premium, because in such policies, the insurer pays you the premiums you have paid over the tenure of the policy, if you survive the term. Check what kind of term plan you have, if you are not sure, speak to the agent who sold you the policy or with the helpline of the insurer to understand where you stand in case of surviving the maturity period of the policy.