Term insurance plan comes under life insurance, and it contributes to your life risk cover for some limited time. If the insured person died, it allows the insured nominee for a death benefit cover in return, issued by the policy. Regular term plan comes with life cover benefits to provide to secure and shelter to your family person with a monetary return. If applied online, then the buyer can opt for an exclusive discount on the paid premium.
However, it doesn’t matter if the breadwinner of the household has saved or invested some amount from the income over the years, but you never know, sudden probability like accident, death, or any severe illness always incline to trouble your family and loved ones. So buying the term insurance plan protects and covers your family by paying back the claimed amount of sum-assured at the time of death
The insurance industry is vast and complex. With the different coverage options and different plans offering different benefits, it gets complicated when one has to choose between them. Broadly speaking, there are two broad categories from which people choose a plan.
Here, we will talk about how regular term plans are different from the return of premium term plans.
|Return of Premium||Regular Term Plan|
|Access to getting Maturity benefits at the end of the policy||No maturity benefit is provided at the end of the policy|
|With maturity benefit, you can get death benefits as well.||Only get access to death benefits.|
|In return of premium, the more financial benefit to the family.||In term plan, only get the financial benefits until the term policy over.|
|Additional add-on and rider benefits are more on extra premium also even the policy ends.||Additional add-on provided only on the pre-decided number of years (can buy an additional cover with paying premium amount)|
|Policyholder gets accidental death benefits as well, on premium pay.||If the insured lived the term policy, he/she will not get the return of sum insured money|