On policy maturity, you get a guaranteed lump sum amount along with bonuses accumulated during the policy term. This amount is exempt from income tax under section 10(10D)**. Also, you save tax under section 80C** for an investment up to ₹1.5 Lac.
Maturity Amount = Guaranteed Lump Sum + Accumulated Bonuses
Guaranteed Lump Sum: The guaranteed lump sum amount depends on the policy term chosen as shown in table below.
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Policy Term
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Guaranteed Lump sum on Maturity+
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10 Years
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130% of Sum Assured on Maturity
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12 Years
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136% of Sum Assured on Maturity
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15 Years
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145% of Sum Assured on Maturity
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+On completion of chosen policy term
Example, if your policy sum assured is ₹5,00,000 and policy term is 15 years, on maturity you are guaranteed to get ₹7,25,000 (145% of ₹5,00,000)
Accumulated Bonus: You policy is eligible to earn bonus every year subject to the performance of the fund. These bonuses are accumulated as a percentage of the sum assured on maturity. Exide Life Insurance has a demonstrated a consistent bonus track record on its existing plans.
Example: If bonus rate of 5% is announced in a policy year, then a bonus of ₹25,000 (5% of ₹5,00,000) is added into your policy in that year.
*The Maturity benefit shall not be less than 101% of the contractual base premium payable under the policy excluding service tax, rider premiums and premiums paid for extra mortality loading. **The maturity benefit is tax free when the life cover is 10 times the annual premium.