Does one get the premiums paid towards a term insurance plan back upon maturity?
Ekta Kumari, Noida
Term insurance plan is a pure risk plan wherein a very low cost is paid to cover life for a specific term. If the insured person survives the term, then normally he gets nothing, but if the insured person does not survive the term, the legal beneficiaries get the amount equivalent to the sum insured. However, insurance companies do have term policies with the benefit of return of premium on the maturity of the policy. So, depending on the kind of policy you have, the premiums may be repaid or you will get nothing on maturity. Be aware that premium for plans where you get the premium back is obviously high.
