In the event of the unfortunate death of the life assured during the term of the policy, a 2 crore term insurance plan will pay out the death benefit of Rs.2 Crores to the nominees/beneficiaries listed under the plan, subject to the fulfilment of the policy terms and conditions.
At the time of buying the policy, you have to select the following:
- The sum assured in the policy which will be ₹ 2 crores
- The term of the policy
- Premium payment frequency which can be monthly, quarterly, half-yearly, or yearly
- Premium payment terms
- Optional riders, as per your insurance needs and availability.
The premium of the policy would be determined based on the details you choose, your age, lifestyle habits, and other factors. You will have to pay the calculated premiums for the chosen premium payment term at the chosen premium payment frequency.
The policyholder pays premiums to the insurer, and if the insured passes away during the policy's term, the death benefit is paid. Under basic term plans, no maturity benefit is payable on survival until maturity. However, if you have opted for the return of the premium term plan, the premiums paid will be refunded.
For instance, say a 23-year-old non-smoking male opts for the Bajaj Allianz Life e-touch II- A Non-Linked, Non-Participating, Individual Life Insurance Term Plan. He chooses a sum assured of ₹2 crore, a coverage tenure of 30 years, and regular annual premiums. He pays a premium of Rs.7,159/year for the 1st year and from 2nd year onwards he will pay Rs.7,760 /year every year. The plan will pay a death benefit of ₹2 crore if he passes away during the policy tenure. However, if the life assured survives the policy tenure, he will receive Rs. 2,32,199 as maturity benefit%.
