What Is a Survival Benefit in Life Insurance?

What Is a Survival Benefit in Life Insurance

In times of uncertainties and unpredictable circumstances, it is quite understood that one should have a strong financial backbone. One can only achieve it with the help of financial planning. Till we are in our 20s, we are majorly dependent upon our parents. But, as one starts earning, a shift starts taking place wherein we are solely responsible for our own finances. This is the time when we should become thoughtful about the money earned and how it can be invested to reap future benefits and guaranteed income ahead post-retirement.

Thus, a saving policy or a saving insurance plan is the right investment avenue that promises a whole life cover upto 100 years. It also gives a guaranteed income to the policyholder and secures them by creating a financial corpus which will help in dealing with expenses such as children’s higher education, marriage expenses, etc.

Those who are keen to reap the benefits in life insurance should buy an online savings plan from a renowned and reputed insurance service provider. For example, the Smart Value Income Plan or SVIP of the Tata AIA Life Insurance Policy is a good online saving plan which comes with several benefits.

What is a Survival Benefit in Life Insurance?

If the policyholder successfully survives till the policy term ends, then they are entitled to get a sum assured along with accumulated/declared bonuses upon maturity. At times, policyholders might get confused between survival benefit and maturity benefit.

Survival Benefit in a life insurance plan comes as a saviour during unforeseen and unprecedented times. Expenses such as children’s higher education, loan EMIs, etc., will require a hefty amount to be taken care of. But, with survival benefits, the policyholder will be able to deal with such expenses. The policyholder just needs to link the expense account with the policy to take care of the expenses.

What is the Difference Between Survival Benefit and Maturity Benefit?

There is a thin line of difference between survival benefit and maturity benefit. Let us understand this with the help of an example. Say, a policyholder bought a savings policy or a life insurance policy for a policy term of 30 years. The tenure for paying the premium is 20 years. So as soon as the premium payment tenure completes, i.e.,  20 years then, the policyholder will receive survival benefits. But they will receive maturity benefits once the tenure of 30 years completes.

Key Things to Know About Survival Benefits in Life Insurance:

  • The survival benefits of life insurance are basically money-back plans
  • The policyholder will receive survival benefit if and only if all the premiums have been paid
  • In case the policyholder passes away within the tenure, then the survival benefit amount won’t be applicable
  • The policy year, as well as the amount on the basis of which the payment will be made, remains fixed. It cannot be changed.

Benefits of a Savings Insurance Policy

There are differing savings plans in India that provide a plethora of benefits to the policyholder. They are as follows:

. Options in Savings plan

While buying a savings plan, the policyholder has two choices. They are receiving regular bonuses right from the first month, and the second is receiving a lump sum bonus amount in the end.

. Payment Frequency For Cash Bonus

The policyholder can receive the payout as per the frequency they wish to. So, they can get the payouts either monthly, quarterly, semi-annually or yearly.

. Whole Life Cover

The policyholder has the liberty to choose the policy term upto 100 years of their age.

. Rider Benefit

The policyholder can add riders to the policy and increase the scope of the life insurance coverage.

Apart from all these benefits, one thing which distinguishes life insurance from others is the survival benefit of life insurance. Now, what is the life insurance survival benefit?


The life insurance policy with survival benefits imparts individuals with an option to secure and safeguard their future. If the insured amount is on the higher side, then the policyholder will be able to deal with some of the essential expenses with ease. So, if you are someone who is juggling financial planning, then periodic survival benefits in a life insurance policy will definitely help you.

What Is a Survival Benefit in Life Insurance?

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