Finance

Published on July 3rd, 2020 | by Sumit Bhowal

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Term Plan with Maturity Benefits? Why Not

The presence of our loved ones makes life worth living for us. It is the family that works as our support system throughout life. Similarly, your role as the breadwinner for your family is also irreplaceable – crucial in keeping the household running and providing for your loved ones’ life goals.

However, you know how life brings unexpected challenges that could potentially derail your plans. To ensure that such unforeseen circumstances do not leave your family in problems, you must take the right steps to secure them financially. One way to ensure their security, even in your absence, is to buy an online term plan.

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You may be aware of term insurance and how it can help provide for your family in your absence. Still, you might be hesitant to buy one as plain vanilla term insurance plans do not offer any maturity benefits. The good news here, however, is that you can now buy an online term policy that provides maturity benefits. Reputable insurers now offer Term Plan with Return of Premium or TROP plans, which promise to provide both life cover and survival benefits. Here is how TROP plans work.

What is the Term Plan with Return of Premium?

As the name suggests, Term plans with Return of Premium benefit offer to pay back the total amount of annualized premiums contributed towards the plan if you survive the policy tenure. This way, TROP plans provide substantial financial security to your family and yourself throughout the term – similar to any plain vanilla online term plan. Also, it ensures that if you survive the term, then you will get maturity benefit in the form of premium payback.

Overall, you and your family can receive both policy and survival benefits when you buy an online term plan with Return of Premium benefit.

Here are some reasons why buying an online term plan in India with the return of premium option will be the right decision:

1. Survival Benefits

One of the most prominent benefits of a TROP plan is that you will receive the maturity benefit in the form of the total annualized premium amount that is paid back to you after the policy tenure gets over.

2. Option to Increase Life Cover

Your family’s needs and aspirations continue to evolve through different life stages. That is why you would need an online term plan that can evolve with your changing financial needs.

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TROP plans from reputable insurers such as Max Life Insurance provide the option to increase your coverage at different life stages so that your loved ones stay protected in case of any unfortunate happening.

When you buy an online term plan with maturity benefit, you will get an option to choose an increase in coverage later in your life. It will ensure that your online term plan provides comprehensive support to your family during tough times.

3. Tax Benefits

Since an online term plan with maturity benefit is also a life insurance instrument, it is covered for tax deductions under Section 80C of the Income Tax Act. So, when you buy this type of online term plan, you will enjoy tax deductions up to Rs 1.5 lakh on your premium paid towards the policy, at the time of income tax e filing.

4. Get Benefits Under MWPA

Your spouse and children are bound to get the most affected from your absence, especially if you are your family’s only breadwinner. However, if you buy TROP, then you must know that Section 6 of the Married Women’s Property Act (or MWPA), 1874, states that if you, as a married individual, can endorse the same under the Act and nominate your spouse and children as beneficiary. In such a case, no other person (such as your parents, friends or relatives) will have any right to the benefits of the online term plan benefits.

By buying and endorsing TROP under MWPA, you can entitle your wife and children to receive both the sum assured (in case of an untoward happening during the term) and the maturity benefits (in the form of a refund of premium, if you survive the policy term.)

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Secure Your Family with Online Term Plan

Now that you know all the benefits offered by an online term plan with maturity benefit, you must buy it to secure your family’s future. Check the policy documents properly and consider adding rider benefits for increasing security coverage further. Term plan calculator, as provided by insurers like Max Life Insurance, also makes it easy for you to find out how much premium you will need to pay for receiving a specific sum assured.

Buy the best online term plan India and then enjoy peace of mind in the present.

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About the Author

Sumit Bhowal

An Internet addict and a MASTAN , Also a lazy Freelancer . I don't try to reinvent the wheel I just like to soak things in Steroid's :p Thanks (y)



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