Prices Increasing soon Prices Increasing Soon

Payout Insurance Options by Different Insurers

A life insurance payout will give much-required financial security if you lose a partner or spouse.If you are a beneficiary, you could use the amount to pay for funeral costs, to pay bills, for covering the child care cost, or for their higher education. The choice is yours. So, to fulfill your life goals, you receive the life insurance payout. There are several options available when it comes to life insurance payouts. It is very important to understand these options so that you can select the right one as per your requirements. 

Read more
Gets ₹1 Cr. Life Cover at just
COVID-19 Covered
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 10% discount for buying online
Only certified experts will call you on 100% recorded lines
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Life is Unpredictable! Protect your family’s future
Get ₹1 Crore Life cover starting from ₹384/month+
+91
Secure
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.

What is a Life Insurance Payout?

A Payout is a death benefit provided to beneficiaries or dependents of a term plan when the policyholder dies. At the time of signing up for the policy, the policyholder has to decide how the death benefits will be paid out. The decision of selecting a payout option should be based on financial understanding, financial liabilities of your family, and any other objectives, 

Types of Payout Options 

Typically, the life insurance plans offer two types of payout options to the life assured or the nominee/beneficiary. If the policyholder passes away before the completion of the policy tenure, the insurer pays the death benefit equivalent to the sum assured to the nominee. If in case the life assured has outlived the policy term, the insurance companies pay the maturity benefit along with the bonus. 

The payout received by the nominee in the form of a death benefit is generally pre-determined. The amount received by the policyholder varies based on the policy type you avail, its T&Cs, and its returns in case of maturity benefit. 

  1. Lump-sum Payout 

    This option is the most popular one as it involves receiving the death benefits on a go. In case the life assured dies in an unfortunate event, the insurance company pays a lump sum amount equivalent to the sum assured to the beneficiary/nominee of the policyholder. 

    In this, the sum assured amount as maturity or death benefits are paid out to the life assured or their nominee/beneficiary in a form of a single payment. This lump sum payout might also include bonuses and loyalty additions. Single payments make sure that the policyholder or his/her nominee receives a substantial amount of money in one transaction so that they can select to invest in other instruments or use it for fulfilling some sizable expenses such as repayment of debts, college fees, housing loans or down payments. 

  2. Periodic Payouts 

    In periodic life insurance payouts, one part of the benefits is payable as a lump sum amount, while the remaining benefits might be converted to installments or annuities. These are paid by the insurance company over the term of a pre-determined period. In this manner, the policyholder enjoys a steady flow of income that can help meet the periodic payouts (regular) expenses such as utility bills, rent, or EMI payments included in the repayment of a loan. 

Steps to Receive the Payout 

The main step in receiving a life insurance payout is to file a request for a claim with the insurer. This can be done in 3 ways: 

  • a claim online on the company’s website or using a mobile application 

  • Contact the insurance company over the cell phone and file your claim 

  • Visit the companies nearest branch office and then submit a written application along with the claim form. 

     
Best term Insurance Plans in India Best term Insurance Plans in India

Payout Options Given by Different Insurers

Different insurers offer different options of payout. Choose wisely as per your required. Let’s discuss three insurers: ICICI Payout Term insurance, PNB Payout term insurance, and Max Life for your smooth understanding of payout options. 

Insurance Companies Payout Options
ICICI Life Insurance
  • Lump-sum Payout
  • Income: A fixed percentage of the benefit amount will be payable for a certain number of years in equivalent installments every month. 
  • Lumpsum and income 
  • Increasing income 
Max Life Insurance
  • One-time lump sum payout 
  • One-time lump sum + Fixed Monthly Payouts 
  • One time Lump sum + Increasing Monthly Payouts
PNB Life Insurance
  • Full lump sum payout
  • Lump sum+ Regular Monthly Income Plan 
  • Lump-sum + Increasing Monthly Income 
  • Lump-Sum + Regular Monthly income (till your child turns to be 21 years) 
Bharti AXA 
  • Lump-sum Payout
  • Monthly Income 
  • Lump-sum Plus Monthly Income 
Kotak Mahindra
  • Immediate Payout
  • Increasing Recurring Payout
  • Level Recurring Payout
Bajaj Allianz 
  • One-time lump sum payout 
  • One-time lump sum payment in addition to fixed monthly payouts 
  • One-time lump sum payment in addition to increasing monthly payouts 
Edelweiss Tokio 
  • Regular Income 
  • Regular Income plus Lumpsum 
  • Increasing Monthly Income
Future Generalli 
  • Lump-sum Protection
  • Income Protection: The death benefit shall be payable as payouts made every month (monthly income) to your beneficiary/nominee during the payout time as selected by you at the commencement of the policy. 
Exide Life 
  • Lump-sum Payout
  • Family Income Payout – Provides fixed percent of the death benefit to the assured’s nominee over certain months from the death date of the policyholder. 
  • Lump-sum with family income payout option 
IndiaFirst Life Insurance 
  • Lumpsum Benefit
  • Income Benefit
Star Union Daichi 
  • Lump-sum payout 
  • Monthly Income 
  • Lumpsum + monthly income 
LIC of India 
  • Level SA: Absolute assured amount to be payable on death, which shall remain constant throughout the policy tenure. 
  • Increasing SA: Absolute assured amount to be payable on death, till the completion of 5th year of the policy. 
Aditya Birla 
  • Lump-Sum Payment: Death benefit is paid as a one-time payment. 
  • Lump-sum payment with increasing annual income: at 5% pa 
Aegon Life  Lump-sum death benefit 
Sahara Life Insurance  Lump-Sum death benefit 
Canara HSBC OBC Life Insurance
Aviva Life Insurance 
  • Lump-sum payout
  • Income Benefit 
  • Lump-sum plus income benefit  
Shriram Life Insurance 
  • Assured Income Payouts 
  • Lump-sum Payout 

50 percent of the death benefit as lump sum and rest 50 percent as regular payouts 

SBI Life Insurance 
  • Lump-sum payouts 
  • Regular annual payout
Tata AIA Life Insurance 
  • Lump-sum payout
  • Income Benefit 
  • Lump-sum plus income benefit  
HDFC Life Insurance 
  • Life Protect Option: This option provides a lump sum payment in case of the policyholder’s death during the policy term. 
  • Income Plus Option: The policyholder is covered for the full policy tenure and also gets a lump sum amount along with regular income from 60 years of age. 
IDBI Federal Life Insurance  N/A

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

“Tax benefit is subject to changes in tax laws. Standard T&C apply.”

Wrapping It Up!

Term insurance investment provides you and your family with a financial security net which is much-needed during critical times. Term insurance policies could provide financial protection in case of an unfortunate event. Term insurance premium calculator is available online and is free of cost, using which one can calculate the estimated premium required to pay based on the desired sum assured. Above, we have discussed the payout insurance by different insurers such as ICICI Payout Term insurance, PNB Payout term insurance, Max Life, and others. 

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

Different types of Plans


Premium By Age

Term insurance articles

  • Recent Article
  • Popular Articles
15 Feb 2024

ICICI 75 Lakh Term Insurance

Ensuring the financial well-being of your family requires

Read more
15 Feb 2024

ICICI 70 Lakh Term Insurance

Securing your family's financial future demands thoughtful

Read more
15 Feb 2024

Kotak 70 Lakh Term Insurance

Ensuring the financial well-being of your family requires

Read more
15 Feb 2024

Kotak 1 Crore Term Insurance

In the realm of financial planning, ensuring the well-being of

Read more
14 Feb 2024

HDFC 75 Lakh Term Insurance

Taking care of your family's financial future means planning

Read more
07 Mar 2014

1 Crore Term Insurance - Buy ₹1 Cr Term Insurance Plan...

Term insurance is a type of insurance plan that offers financial security to your loved ones in the event of your

Read more
12 Jun 2018

Claim Settlement Ratio of Term Insurance Plan Providers

Claim Settlement Ratio (CSR) is an important parameter in the selection of an insurance policy. If you are going

Read more
27 Jun 2018

What Is Difference Between Term Insurance And Life Insurance

Life insurance plans help you create wealth, protect your family for the entire policy term, and save on your

Read more
24 Mar 2020

LIC Term Insurance 1 Crore

LIC of India offers various plans to help you secure the financial future of your loved ones. To ensure your

Read more
20 Aug 2014

Term Insurance for Women in India

Term insurance for women is a type of life insurance specifically designed for fulfilling women’s needs and

Read more
top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL