Maturity benefit

A maturity benefit is what the policy pays for surviving. Endowment and savings plans have one; pure term plans do not, which is precisely why term cover costs less.

What is payable, and on what basis, is set out in the policy document rather than being a general property of the category.

Related terms

• Endowment policy Life cover combined with a contractual payout at maturity, whether or not a claim is made.
• Survival benefit A payment made at defined points during the term, provided the life assured is alive.
• Term insurance Pure life cover for a fixed period. Pays out if you die during the term, and pays nothing if you outlive it.

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