Do Term Plans Have Maturity Benefits?

Dec 03, 2018 | 9 months ago | Read Time: 3 minutes | By iKnowledge Team

Term insurance plans do not offer maturity benefits due to the absence of investment aspects in the policy. However, few return back term policies provide maturity benefit.

Our life is very precious, not only for us, but for our family members as well. For people who are breadwinners of the family, the very thought of death is enough to give them nightmares. Though we live our lives fearing the inevitable, very few of us do something about it. To protect your family from a financial crisis in your absence, the best thing you can do is get yourself insured.

Insurance can be a lifesaver for your family in your absence. Moreover, if you purchase a term plan you can be stress-free even about the worst adversities. A term plan is a basic life insurance policy which provides a high amount of sum assured to the nominees in the event of the policyholder’s death. Nowadays, term plans have been modified to offer benefits like online operation and rider addition. However, there are some things that you need to keep in mind before you purchase term insurance plans; one of them includes no maturity benefits.

Why do term plans not have maturity benefits?

Term plans are the purest form of insurance covers available in the market. There are many reasons that justify such an attribute of term plans. The most popular reason is lesser bifurcations of the premium you pay. When you purchase a life insurance policy, the premium you pay is divided into three parts, i.e., cost of insurance, administrative charges and investment. A term plan premium is bifurcated into two parts – cost of insurance and administration charges. Since all your money is allocated towards insurance, term plans do not offer maturity benefits.

Why should you buy a term plan?

Some people may find it weird paying for a policy that does not give anything back. Technically, it might seem true, but if you look at the benefits, term plans offer you a considerably huge amount of cover, and if you add riders, you can further widen the coverage spectrum of your policy.

Still looking for maturity benefits?

If you are disheartened by the fact that term plans do not provide maturity benefits, there is a way you can get your premium back from a term insurance. You can buy Aegon Life’s iReturn term insurance policy. Just like a normal term plan, iReturn offers the same benefit to the policy holders. Moreover, it also offers additional benefits like other term plans provided by Aegon Life. Here are some of the key benefits offered in Aegon Life’s iReturn term plan.

  1. Inbuilt riders: Term plans offered by many companies require additional riders to enhance the policy. Due to this, the insured is exposed to risks like accidental death and critical illnesses. iReturn comes with inbuilt riders that provide financial cover in both the possibilities.
  2. Online operation: You can say that iReturn has a touch of innovation. Apart from invoices and a passbook, you get the option of viewing the policy online. This can be useful to track the payments of premiums and for the renewal of the policy.
  3. Get sum assured: In iReturn term plan, you are eligible to get up to 25% of the policy amount, if you are diagnosed with a critical illness. Moreover, the company also waives off your future premiums for the remaining term.

If you wish to purchase Aegon Life’s iReturn term plan, you can visit their website or call on their customer assistance number. 

II/Oct 2018/4469

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Section 80D Deduction under Income Tax Act
Return of Premium [ROP) for Term Life Insurance Policy in India: Explained
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