|Objective||This term insurance plan pays policy benefits to the nominee as annual installments over a 20-year period, instead of a lump sum payment.|
|What does it do?||In case of the policyholder’s death, the plan will pay an annual sum over next 20 years to the family.
On survival, entire premium paid is returned to the policyholder on maturity.
|Pros||The policy provides for maturity benefit on survival and surrender benefits if one wants to surrender the policy mid term.
The annual payout can be used as a replacement of income, and it’s better than receiving a lump sum payment.
|Cons||There are no rider options available with the plan.
Policy is available for a fixed tenure of 10, 15 or 20 years.
|Suited for||This policy is suitable for those not happy with the idea of paying premium for a pure term plan, paying only death benefit.|
|Our View||The return of premium option is a marketing gimmick and does not add value, as you end up paying higher premium as compared to a plain risk cover offered by the same insurer.
The annual payout of claim benefits is useful for the policyholder's nominees.