5 min read
Updated on Nov 01, 2022
Term life insurance policies work as a savior for families in the event of sudden demise of the head earning member. But, do you know what happens if the policyholder survives the policy term? Let’s find out.
Term life insurance policy is a product that allows financial coverage to the insured for a specific time period as per the term of the policy. If the insured dies during such time, the family of the policyholder is paid death benefit by the insurer. However, what if the insured outlives the policy term? Does he receive any survival benefit? Or does he lose his entire money paid as premiums? Let’s take an example to understand this.
Suppose you bought a term insurance plan to secure your family against uncertainties of life in the event of your sudden and untimely demise. However, luckily you survived the term of the plan and outlived the policy. So, now you are worried about your money. Will you get any survival benefit on your policy or you have wasted your money on the plan. The answer is, you will receive money in case you have bought a plan with return of premium option. Let’s understand this in detail below.
As indicated by the name itself, survival benefit is the monetary benefit received by the insured at the end of a policy term under the best term insurance plans. However, in this case the policy has to be a return of premium plan under which the policyholder is allowed survival benefits at maturity if he/she outlives the policy tenure. Survival benefit is not generally offered under the normal term plans as they are available only with return of premium plans.
Below are some advantages of availing term plans with survival benefits:
Here are some features of term plans with survival benefit:
The market is flooded with insurance companies offering term plans with survival benefits. Hence, it is important to carry on a research of the plans that are available. Further, you should understand the plans and their features properly before buying them. Buy a plan only when you are sure about it in terms of financial security. Also, do read the terms and conditions of the plan that you want to buy.
Here are some best Insurance plans offering Survival Benefits:
Term insurance plans are indeed very popular, especially among people who are looking at providing monetary security to their families in the future. These plans are also lucrative for the beneficiary since they offer survival benefits to the nominee along with death benefits. So, the next time you plan a term insurance seek for a plan offering survival benefit. Moreover, since you already know the survival benefit’s meaning and how you can gain from it, it is better to look for plans allowing such benefits.
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