What happens to a whole life insurance policy when it matures

Q: Do you get your money back at the end of a whole life insurance?

An insurance policy generally isnt something you can return for your money back. But theres one exception: return-of-premium life insurance. Also known as ROP life insurance, this type of coverage reimburses you for the money you paid in premiums if you dont die during the term.

Q: Should I cash out my whole life policy?

While it isnt always advisable to cash out your life insurance policy, many advisors recommend waiting at least 10 to 15 years for your cash value to grow. It may be wise to reach out to your insurance agent or a retirement specialist before cashing in a whole life insurance policy.

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Table of Contents Show

Do you get your money back at the end of a whole life insurance?
What happens when whole life insurance policy matures?
How long does it take for a whole life insurance policy to mature?
Should I cash out my whole life policy?

Trade Logo of Canara HSBC Life Insurance Company Limited (formerly known as Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd) hereinafter referred to as "Insurer" is used under license with Canara Bank and HSBC Group Management Services Limited.

1. The monthly survival benefit mentioned is an example of Life Assured opting for Sum Assured as 1Cr under Life Secure with Income plan option. Under this plan option, a Monthly Survival Income shall be payable at the beginning of each month, starting from the Policy Anniversary coinciding with or following the Life Assured attaining age 60 years (last birthday) which shall continue till the end of the Policy Term or the death of the Life Assured whichever is earlier. In case of death of the Life Assured during the Policy Term, Sum Assured on Death basis the Coverage option opted, less cumulative monthly income(s) already paid shall be payable. The Policy will terminate after payment of this benefit.

2.Conditions Apply - Payable at end of the Policy Term, Provided all premiums are paid as and when due.

3.The maturity benefit calculated for a 25 years old healthy male who has opted for Canara HSBC Life Insurance Guaranteed Savings Plan with Guaranteed Savings Option through insurer’s website, annual premium Rs. 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. The maturity benefit is Rs. 51,84,468 which includes Guaranteed Sum Assured on Maturity, accrued Guaranteed Yearly Additions and Guaranteed Loyalty Addition. T&C apply.

4.Tax benefit of Rs. 46,800/- is calculated at the highest tax slab of 31.2%(including 4% cess) for an individual assessee on life insurance premium of Rs. 1.5 lacs under Income Tax Act, 1961 and tax benefit may vary from assessee to assessee. Tax benefits/savings are subject to provisions under section 80 C, 80 CCC, 80 D, 10(10A), 10(10D) and other sections of the Income Tax Act, 1961. The provisions of Income Tax Act, 1961 are subject to amendments made by the government from time to time. Goods & Services Tax will be charged on the premium amount. Please consult your independent tax advisor for details.

5. The maturity benefit is calculated for a 25 years old healthy male life who has opted for Canara HSBC Life Insurance iSelect Guaranteed Future with iAchieve plan option, monthly premium Rs. 10,000 (excluding taxes), premium payment term 10 years and policy term 20 years through online sales channel. The maturity benefit in form of a lumpsum benefit equal to Rs. 29,85,555 is paid at the end of the 20th year. T&C apply. Maturity Benefit is paid in the form of a lumpsum benefit at the end of the policy term,provided the policy is in-force and all due premiums have been paid.

Please know the associated risks and the applicable charges, from your insurance agent or the intermediary or policy document issued by the insurance company.
The Unit linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender/withdraw the monies invested in Unit linked Insurance Products completely or partially till the end of the fifth year.
The investment risk in investment portfolio is borne by the policyholder.
Canara HSBC Life Insurance Company Limited is only the name of the insurance company and Canara HSBC Life Insurance Invest 4G is only the name of the unit linked insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
Unit linked Insurance products are different from the traditional insurance products and are subject to the risk factors.
The premium paid in Unit linked Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.
The premium shall be adjusted on the due date even if it has been received in advance.
The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these funds, their future prospects and returns.
Past performance of the investment funds do not indicate the future performance of the same. Investors in the Scheme are not being offered any guaranteed / assured returns.
The premiums & funds are subject to certain charges related to the fund or to the premium paid.
Collection of advance premium shall be allowed within the same financial year for the premium due in that financial year However, where the premium due in a financial year is being collected in previous financial year, the premium may be collected for a maximum period of three months in advance of the due date of the premium. The premium so collected in advance shall only be adjusted on the due date of the premium. Such advance premium, if any, paid by the Policyholder shall not carry any interest.

^Individual death claims settled and reported in public disclosures for FY 2021-22.

For more details on risk factors, terms and conditions please read the Sales Brochure carefully before concluding a sale.

Do you get your money back at the end of a whole life insurance?

An insurance policy generally isn't something you can return for your money back. But there's one exception: return-of-premium life insurance. Also known as ROP life insurance, this type of coverage reimburses you for the money you paid in premiums if you don't die during the term.

What happens when whole life insurance policy matures?

Yes, if a whole life policy reaches maturity, the policyholder receives the face amount of the policy or the amount of the death benefit and the policy ends. A life insurance policy may reach maturity if the person reaches a certain age, such as 100 years old.

How long does it take for a whole life insurance policy to mature?

What happens when a whole life insurance policy matures? Most whole life policies endow at age 100. When a policyholder outlives the policy, the insurance company may pay the full cash value to the policyholder (which in this case equals the coverage amount) and close the policy.

Should I cash out my whole life policy?

While it isn't always advisable to cash out your life insurance policy, many advisors recommend waiting at least 10 to 15 years for your cash value to grow. It may be wise to reach out to your insurance agent or a retirement specialist before cashing in a whole life insurance policy.