The amount provided by the insurer at the end of the policy term or when your insurance plan matures is called the maturity amount. To claim the life insurance maturity amount, you've to complete the policy tenure, pay your premiums timely, and keep the policy active during its complete tenure.
Maturity amount comes in different forms with different kinds of life insurance policies. For example, a term plan with a return of premium option pays back your paid premiums once you complete the entire policy tenure. An investment plan pays your investment returns as a maturity benefit and a guaranteed return plan pays the guaranteed sum along with the interest at the time of maturity.
Let us understand the maturity amount in detail with this article.
A plan that pays you when you survive the policy tenure sounds like a nice deal. However, the maturity amount may vary from type of plan. Therefore, the three types of maturity benefits are as follows:
| Guaranteed Plans | Participating Plans | Non-Guaranteed Plans |
| As the name suggests, a guaranteed plan works like a saving and protection tool that offers a guaranteed return on your investment. | Participating plans offer the combination of both a guaranteed return on your investment and an accumulated cash bonus annually. | To put it simply, a non-guaranteed plan does not offer any maturity benefit once you outlive the policy tenure. Still, you'll receive an annual cash bonus and a fair share of the profits earned by the participating life fund. |
| Under this plan, you'll get 6% guaranteed tax-free maturity benefits once you outlive the policy tenure. | Under this plan, you'll get 4% guaranteed tax-free maturity benefits and a fluctuating 4% to 8% annual cash bonus. | Under this plan, you'll get an 8% non-guaranteed annual cash bonus. |
Estimating the exact maturity amount of life insurance is not possible. But you can estimate the close value to get an idea of the maturity benefit.
Maturity benefit is calculated as the [Maturity Amount=Life Cover Assured + Cash Bonus], which has been accumulated during the policy tenure + any other additional bonus if declared. Please note that if the policyholder does not outlive the policy term, their nominee will get the life cover amount as the Death Benefit.
| Parameters | Sum Assured | Maturity Benefit |
| Type of benefit | A sum assured is a guaranteed amount that is payable to the nominee in the event of the policyholder's unfortunate death. | The maturity benefit is typically not guaranteed, but a portion of it can be, such as in the savings plans. Under this plan, the life cover on maturity is decided during the policy inception. |
| Objective | The sum assured is beneficial to secure your family's financial future in your absence. | The maturity benefits work as a saving & protection tool that helps you accomplish your future financial goals. |
| Nominee | The death benefit amount is payable to the appointed nominee. | The maturity claim will be directly credited to the policyholder's account once the completion of the policy tenure. |
| Time of Claim | The death benefit is paid to your nominee in the event of your untimely death during policy tenure. | The maturity benefit is only payable once you outlive the policy term. |
| Applicability | Sum assured is given under all life insurance products. | It only applies to endowment plans, term insurance with return of premium plans, and ULIPs plans. |
Most insurers offer a simple and easy-to-follow maturity claim process, and it can be accessed online or offline.
Complete the policy tenure
After outliving the policy tenure, you've to file a claim to get the maturity benefit.
File claim with documents
You have to file a claim along with the required necessary documents.
Insurer will verify the documents
After the verification of the documents, the insurer will process the claim and make the payment.
Maturity amount will be paid
The maturity claim will be directly credited to the policyholder's account.
Here, we've listed the important documents required for a hassle-free maturity benefit claim process.
While buying a life insurance policy, it is important to understand the maturity benefit advantages carefully. However, maturity benefits may provide you the substantial financial assistance and come in useful to achieve future goals in the later stage of your life. For further assistance, you can directly reach out to our customer care representative and get instant assistance.
The date at which your life insurance policy tenure is complete is known as the maturity date of the policy.
To put it simply, the amount provided by the insurer at the end of the policy term is called a maturity amount.
You can file a maturity benefit claim once you outlive the policy tenure.
No, you are not allowed to file a maturity claim after 3 months. Only maturity benefit claims are submitted after the completion of the policy tenure.
Under section 10 (10D), the maturity benefit from life insurance is fully tax-free.
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