Interested in financial products
CreditMantri
Processing

It is difficult to pin a number on the approximate amount a life insurance policy pays out because the payout depends on several factors like policy type, sum assured, terms and conditions, cost of premiums, etc. But what you can always find out is how the payout option works at the end of the tenure period.

Generally, there are two types of payout options available for life insurance policies in India. These payouts are offered:

  • When you die 
  • When you outlive your policy.

If the insured person dies during the term period then the death benefits will be received by the beneficiary specified in the policy. The amount payable to the beneficiary as death benefits is specified upfront initially, as they know the minimum amount they are eligible for payout during that period. On the other hand, if the policyholder outlives the tenure period the insurer pays out the maturity benefits and bonuses, as mentioned in the terms and conditions, if applicable.

Here’s an example of how life insurance payouts work. Mr. X, a 28-year-old healthy non-smoker, bought a term insurance plan with a return of premium option for a Sum Assured of Rs 1 crore at a premium of Rs 13,900 p.a. (excluding GST) payable for the policy term of 30 years. In case of his demise within 30 years of buying the policy (i.e. the policy tenure), his nominee would receive the Sum Assured of Rs 1 crore. However, if Mr. X survives the policy term of 30 years, he will receive Rs. 4,17,000 (13,900 x 30).

To know the payout your plan offers, you can always contact the customer care team of your insurance company to get the actual figures.

Apply for a credit score
×Thank you! Your comment will be reviewed and posted shortly.
Mastercard
Visa
Rupay
SafeKey
thawtr
Corporate Agent (Composite)

CreditMantri Finserv Private Limited

CIN No

U72100TN2012PTC085154

IRDAI Registration Number

CA0665

Valid Till

01-Aug-2025

ADDRESS

CreditMantri Finserve Private Limited Unit No. B2, No 769, Phase-1, Lower Ground Floor, Spencer Plaza, Anna Salai, Chennai - 600002

Copyright © 2024 CreditMantri