How is guaranteed maturity benefit calculated?

Guaranteed Maturity Benefit is the guaranteed lump sum amount that is payable at the end of the policy term. Your guaranteed maturity benefit will be set at the commencement of the policy and will depend on age, premium, policy term, premium payment term and gender. The guaranteed maturity benefit may be lower than than the sum assured on death.

If the policyholder survives till the end of the policy term and all premiums have been paid as scheduled, then the decided maturity benefit shall be paid to the policyholder.

Formula for Calculating Maturity Benefit

Maturity benefit is calculated as the [Sum Assured + Bonus Amounts] which have been accumulated throughout the policy term + any [Final Addition Bonus] if declared. However if the policy holder does not survive the policy tenure, the nominee will additionally get the Sum Assured amount as the Death Benefit.

Maturity Benefit = On maturity the Basic Sum Assured + accrued bonuses + any Final Bonus is paid to the policyholder.

Guaranteed maturity benefits are paid out on maturity. The set amount is informed to the policy holder before the plan is purchased. So, there is no denial regarding “Past performance.”