Know how Term Plans just got smarter..!

Know how Term Plans 

just got smarter..!

-Sanjay Tiwari, Director- Product Management and 

Customer Service, Exide Life Insurance

·         Term plans offer financial protection to your family in the event when you are not around.

·         Term Plans usually offer large sum assured during the policy term at a reasonable premium amount. At the end of policy term, no maturity benefit is paid to you.

·       Term Plans with return of premium offer financial protection during the policy term and return all premiums paid by you at the end of the policy term.

Term insurance plans are the least expensive among life insurance plans. They are based on a simple logic: a person buys the policy with a certain life insurance cover; and in case of unfortunate demise of policyholder during the policy term, the family gets the amount equal to the life insurance cover. You don’t receive any maturity benefit on completion of your policy term.

If you are looking at a reasonable life insurance cover; and are also particular about getting your money back on completion of policy term, then you should consider the smarter variant of term insurance plans that offer return of premium. Term Insurance Plans with Return of Premium (or TROPs), as they are popularly known, offer financial protection to your family during the policy term and return all premiums paid by you at the end of the policy term.

Let’s understand the concept of ‘Term Insurance Plans with Return of Premium’ with an example. If a policyholder pays a yearly premium of ₹10,000 for a policy term of 20 years to get a life insurance cover of ₹50 lakh, then the total premium that he would pay over the entire policy term will be ₹2,00,000.

On completion of the policy term, the policyholder will received 100% of the premiums paid as maturity benefit. However, in case of unfortunate demise of the policyholder during policy term, ₹50 lakh will be paid to his family. A perfect example of this is the Classic variant of Exide Life Smart Term Plan, which returns 100% of premiums paid, in case the policyholder outlives the policy period.

Tax benefits on premium paid and payout received

Premiums paid during the policy term and the premium returned (maturity benefit) at the end of policy period is tax free.

Giving you the dual benefit of life insurance cover and return of premium at the end of policy term, these plans are suitable if you want more than just life insurance cover. So secure your family’s future with Exide Life Smart Term Plan with Return of Premium.

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