- Policy benefits are payable even if the insured outlives the policy period
- Exide Life Smart Term – Step Up variant returns up to 150% of the premium paid
- The premium returned is eligible for tax exemption under section 10 (10D)
Term insurance plans offer a substantial sum assured at an affordable premium. In ‘pure’ term insurance plans, the policy benefits are payable only in case of the policyholder’s demise within the policy term, but if the insured survives the policy period, no pay-out is made. While this results in the policyholder paying a lower premium, it was a barrier to adoption for some who thought that it will be a loss of money if they outlive the policy period.
To plug this gap, term plans with ‘return of premium’ feature has been introduced. Term plans with this feature are similar to traditional term plans but the contrast is evident once the policy period gets over. If the policyholder is still living, he will get back all the premiums paid during the policy term.
Exide Life Smart Term Plan is a return of premium term plan. It not only returns the premium paid, but also has a variant that returns more than the premium paid. You can choose how much you want to receive back once the policy term is over. Below are the 3 variants of Exide Life Smart Term Plan:
Classic: If the insured person outlives the policy period, all the premiums paid during policy period is refunded back. You enjoy the life cover during the term of the policy.
Step Up: It gives back more than the premium that you paid during the policy term. The amount returned would be a specified percentage more than the premium paid, depending on the policy period. Up to 150% of premiums paid is returned back.
For instance, if Mr. A has bought a term plan where he has paid a total premium of Rs.1 lakh over his policy term, he would be paid back the entire premium amount of Rs.1 lakh plus an additional amount, which will depend on the terms of his policy.
Comprehensive: It provides a higher life insurance cover and a part of the premium paid is returned back.
These variants give you the flexibility to tailor your life insurance requirement not only at a lower cost but also offer you options to adjust premium payments as per your financial circumstances. Based on your cash flow situation and return expectations, you may decide on the best variant that suits your requirement and profile.
Avail Exide Life Smart Term Plan with Return of Premium by visiting the Exide Life Insurance website today