Term insurance = NO maturity benefit or survival only applies to death & no illness (you can add critical illness rider), only death benefit.
Pure term insurance plan
Return of premium pay 879 extra to get 5.03 lacs premium at he end of the policy after 27 years. dated 10th march 2023.
person age 33, life cover or sum assured 50 lakhs for 60 years premium 8452 for year upto 60 years or 27 years. (max life)
higher policy term and higher high policy premium
term insurance Maturity benefit or survival benefit with return of premium TROP
Return of Premium (ROP) variant, where you have to pay more than a pure term plan
(without ROP variant),
Return of premium pay 879 monthly extra to get 5.03 lacs premium at he end of the policy after 27 years.
Return of premium pay 9987 extra to get 4.76 lacs premium at the end of the policy after 27 years.
- : Being a return of premium plan, the maturity benefit will be a return of 100% of the premiums paid.
example: 8452-18% GST = 6930*27=187110
1522*27=41094 (GST tax for 27 years) wasted.
8452+9987=18438 (9987 for mutual funds growth plan SIP for 27 years)
Term insurance death benefit
Sum assured return ex: 50L return to your nominees incase of successful death claim. (make sure to ready documents)
Term insurance survival benefit with Stock market options ULIP
8452 annual premium + 9752 (for stocks) extra needed assured return as per IRDAI 4-8% but reurn 11%-15% based on market conditions.
better idea invest separately.
zero cost term insurance
What is Special Exit Value?
Unlike the Return of Premium (ROP) variant, where you have to pay more than a pure term plan
(without ROP variant), Special Exit Value allows you to pay as per a pure term plan variant while
giving you an option to get back all premiums paid making this term plan a zero-cost term plan.
The policy will terminate once this benefit is availed.
option to exit the term plan at a certain age and get all the premium amount back that he/she has paid minus the GST
max life smart secure plus
1cr cover 1043 month
50 lakhs zero cost available for 73-85 years
50 lakhs for 73 years
11313*27= 452520- 18% = 371066
70 years without zero cost 10901
11313*40= 305451 (zero cost term)
Term insurance with whole life
100 years then return of
zero cost vs pure term plan
its free when your opt for 40 years but is it necessary for long term 73years vs upto 60 or 55 years age
70 years @ 10901 *37=403337 (no return)
73 year @ 11313*40=452520-18% = 371066.4 (you get return)
8452*27= 187110 for 60 years (no return) 11313-8452=2861 for SIP 40 years (but not covering risk for 13 years)
452520-187110=265410 extra for 13 years (extra there you may saved the money for child)
annual premium increases as policy cover age increasing and now cost term at the end.
Return of Premium (ROP) term insurance plans charges a 70-80% higher amount of premium than a regular term insurance plan
Generally, Zero Cost plans are about 50% cheaper than Return of Premium (ROP) plans.
you opted for 73 years zero cost and choose exit at 55 years then you get all your premiums-GST back.
11313-8452=2861 for SIP 40 years (but not covering risk for 13 years)
11313*27= 305451 for 60 years (with exit return)
2861*60=171660 (with SIP @10%CAGR for 2861 SIP calculator
maturity: 3,80,980 total deposit= 77220, returns 303k
12% 542k @24% 28lakhs