What will I receive on maturity of my policy?

On maturity, you will receive the sum assured or the Accumulation Account whichever is higher. Lets understand how does this work….

  1. Every year you will pay premium on your policy.
  2. This premium will get credited to an Accumulation Account.
  3. The amount required towards your life cover expenses and any other expense would be deducted from this Account.
  4. The balance will be invested in sound financial securities (as per IRDA regulations) on your behalf.
  5. The bonuses declared each year by the company would be added to the Accumulation Account. Thus, every year the value in your Accumulation Account will get compounded.
  6. At the end of the policy tenure, you would receive the amount in the Accumulation Account or the sum assured, whichever is higher.