Insurance companies pay out maturity benefit when the ULIP policy has completed its tenure, and the policyholder has survived the policy term. Therefore, you will receive the fund value along with loyalty additions (if any) in the form of maturity benefits, provided you have paid all premiums timely. On the other hand, the death benefit is paid out to your nominee or beneficiary, in case of your unexpected demise during the policy tenure. Therefore, the death benefit would be paid as the highest of the following values:
- Fund value under the policy
- Sum assured (after deducting Partial Withdrawals if any)
- 105% of total premiums paid till date of death