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Simplifying Life Insurance in India
What are the Differences Between Survival Benefit and Maturity Benefit?
What Is the Maturity Benefit?
What Is Survival Benefit?
Survival benefit is a percentage of the sum assured amount that the insurer will give the policyholder after specific years as decided while purchasing the life insurance plan. This type of life insurance policy is known as a ‘money-back’ plan.
Nevertheless, since this survival benefit is a part of your sum assured amount, your nominee will get less as a death benefit. Let's assume that your policy has a sum assured of ₹1 Crore. However, you collected 15% of your sum assured, in total after the 10th and 15th year of the policy term as a survival benefit. Then, your present sum assured will be (100-15) % of ₹1 Crore = ₹85 Lakh.
Difference between Survival Benefit and Maturity Benefit
| Feature | Maturity Benefit | Survival Benefit |
| Payout Time | You get the maturity amount only after the maturity period. | You can get this survival benefit in the middle of the policy period. |
| Availability | This benefit is available in all life insurance plans except for the pure term plans. | It is available only on some selected plans like the money back plans. |
| Payout Mode | You can select either the lump-sum or periodic pay-out option. In the lump sum option, you will get the entire amount at once. In the latter option, your insurance company will pay you the maturity benefit periodically in small break-ups. |
You will get survival benefits only after the pre-specified policy term. With these smaller pay-outs, you can fulfil your financial goals if planned properly. |
Now that you know the underlying differences between survival benefits and maturity benefits, you can properly distinguish these two. You can also decide whether you would like to get the survival benefit or keep your sum assured intact.
Frequently Asked Questions
Can I Get the Survival and Maturity Benefits at the Same Time?
What are the Essential Advantages of Survival Benefits?
When Can You Claim Maturity Benefits?
Important Guides Related to Life Insurance
Disclaimer
- This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
- All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
- Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.
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