How to avail maturity benefits from life insurance policies

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Buying life insurance is needed to protect your family in case of death, accidents or disabilities that lead to loss of income. Life insurance policy with maturity benefits allow to get double advantage from your existing policy. There is different policy duration including 5, 10, 15 or 20 year maturity period. And it is good idea to go for policies that provide maturity benefits. Here are some of features related to life insurance policy with maturity benefits.

What is Maturity Benefit?

Maturity Benefits pass on to amount received by policyholder once police matures. In simple words, amount settled by insurance companies which is withdrawn when policy matures. In most of cases, maturity amount is multiple of premiums paid up to that time and additional benefits which insurance companies choose to give to policyholder.

Basic eligibility of policy must need to avail maturity benefits is that you must remain active throughout term. Some key maturity benefits received from life insurance policies are mentioned here-

  • Basic amount talk about during policy activation
  • Accrued additions
  • Dividend decline
  • Bonus

How much is maturity benefit?

Firstly, maturity benefits related to policy remains equal to lump sum paid in premium and this increases on yearly basis. You need to check policy rules and regulations from first. Generally, you gets bonus amount at end of policy term. At end of maturity Term Company will pay full amount to client.

Process to claim maturity benefit

Policy free form

In general, insurance company sends Policy discharge form before one month of maturity date of insurance policy. This form also provides information about documents that need to go with form. Read Healthy lifestyles can save your Money on Life Insurance

Documents details

You must filled policy discharge form and this form need to signed by policyholder as well as two witnesses. Along with form, following documents need to attach with application.

  • Original policy document
  • Copy of identity proof
  • Address proof
  • Bank statement with bank details
  • Cancelled cheque leaf.

This form with required documents must go to insurance company at least 5-7 working days before policy maturity date for maturity settlement.

Process of form

Once document are sent to insurance company, then company will verify documents and process the maturity claim form and make payment to policyholder. This maturity payment will credited directly to bank account of policyholder after policy maturity date.

Buyers have Flexi-options

Life insurance policy with maturity options provides many flexible choices, which are not present anywhere else. First of all these are affordable plans for investment, that anybody can buy without problems. Besides, these come with guaranteed returns whatever your policy ter.

Therefore, this helps in making of corpus that can come in handy under any situation. This premium amount is low and do not put extra pressure on your finances. If you want to surrender your policy after specific periods or make partial withdrawal you can do it.

Basic benefits for life insurance

You go for life insurance to keep your family secure and allow your children to continue with education even when you are no longer. In life insurance policy with maturity benefits, related to life insurance remain same with additional money return guarantees when you go through policy term.

With add-on benefits and no extra charges, life insurance policy with maturity benefits forms is best choice for those who want to ensure even in their absence. This not only provides strong financial backup when you are not their but you also pick benefits on policy maturity when you stay alive.

Points to remember

  • This procedure is valid only to those policies have maturity benefits. Like survival benefit, bonus etc. Also read Do not make mistakes while buying medical insurance
  • In case policyholder dies after maturity date of policy but before policy discharge procedures are completed, then this claim is consider as maturity claim. And settlement amount is paid as per legal heirs of deceased policyholder.

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