Difference Between Sum Assured and Maturity Amount

Generally, insurance companies send a policy discharge form to their customers one month prior to the date of maturity. It contains everything that they need to follow to claim the maturity benefit. You need to submit it on due time after completing some formalities.

The policy discharge form requires your signature as well as that of two witnesses during submission. Along with this, you need to attach several documents like copies of identity proof documents, address proof documents, bank details, etc. After you send all these papers, your insurance company will carefully examine them for verification. They will send your maturity benefit to your account upon completing the process.

Nominees need to inform the concerned insurance company about the insured individual’s untimely demise. Then, they will have to either apply online, or collect an offline application form for death benefit from any branch of that insurance company if online facility is unavailable.

Nominees will have to provide all the necessary documents, including their address and photo ID proof, the insured individual’s death certificate, etc., along with the duly filled-in application form. After this, the insurer will go through all records and disburse the sum assured amount upon verification.

After knowing the difference between sum assured and maturity amount, you can now clearly understand the unique importance of these two types of policy benefits. You can see maturity benefits as an alternative to your savings. On the other hand, sum assured can help your family to sail through their lives in case of your unfortunate demise.