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Term Insurance Return Of Premium

Enhance your rider benefits or get a premium
refund once your policy matures.

Like any other term insurance policy, Term Insurance Return of Premium also covers the family of the insured in case something unfortunate happens to the policyholder. But, the specialty of this policy lies in the ‘Return of Premium’ feature.

What is Term Plan with Return of Premium or
TROP?

Term plan with return of premium is a two-fold policy that explains that the insurer will pay the sum insured as a death benefit to the nominees in case the policyholder dies during the term and the premium will be returned as a survival benefit in case he/she outlives the tenure.

To start with this plan, you need to choose the required sum assured and policy period and then pay the premiums accordingly. When the policy matures, the insurance company will return the premiums to you per their terms and conditions.

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How does it work?

For your better understanding of the ‘Return of Premium’ policy, let’s consider a term insurance policy of ₹ 40 lakh cover for 20 years. The annual premium payable for this plan is ₹ 8000 till the maturity of the policy.

According to the Term Insurance Return of Premium policy, if the policyholder dies during the tenure, ₹ 40 lakhs will be paid to his/her nominees. But if they survive the term, the insurer will be returned the entire premium amount of ₹. 1,60,000 (8000 x 20).

Features and Benefits of Term Plan with Return of Premium

Investing in a term plan with return of premium benefits in several ways.

Surrender Value is provided if the insured surrenders the plan or discontinues premium payments. The surrender value is calculated depending on the premium payment option. Generally, surrender value is higher in the single premium plan.
Survival or maturity benefit is the main attraction of this plan as, unlike any other traditional term plans, this policy refunds the entire premium on the survival of the policy tenure.
Like the traditional term insurance plan it offers life cover in the form of a death benefit to the beneficiaries of the insured.
Premium payment option at regular intervals is available on an annual, half-yearly, quarterly, or monthly basis.
Some insurance companies provide certain additional benefits such as critical illness, personal accident, disability, etc.
It makes the insured eligible for availing tax benefits under sections 80C and 10 (10D) of the Income Tax Act.

Who Can Avail Term Plan With Return of Premium?

To be eligible for insuring yourself with the Term Return of Premium plan, the minimum age should be 21 years and the maximum age should be 55 years. The premium rate of the term insurance plan with return of premium is defined based on the insurance buyer’s age. You can register yourself and enjoy the benefits of this policy –
If you are Single
If you are married with no children
If you are married and have children
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