Term Insurance with Return of Premiums

Term Insurance with Return of Premium (TROP) is a type of term insurance plan in which all the premiums paid towards your term plan will be paid back to you in case you survive the complete policy term.

Term Insurance with Return of Premium (TROP) provides dual benefits to its customers. Under this Plan, the customer gets death benefits and survival benefits as well.

Best Term Plans with Return of Premium in 2024

Given below is the list of best-term returns of premium plans as of 2024.

Top Term Plans with Return of Premium- At a Glance

Here we have listed some of the best TROP plans in the Indian market.

What are the Benefits of Term Return of Premium (TROP) Plans?

Like a standard term plan, TROP plans also provide a lump sum payout to the dependents in case of the policyholder's demise.

However, the option of taking back all the paid premiums after surviving the whole policy term makes TROP plans different from regular term plans. These are suitable for customers who aim to receive their premiums paid for the term insurance back.

Conditions You Should Know Before Opting For a Term Plan With Return of Premiums

Following are some conditions that come attached with TROP plans. Have a look at them.

1. Generally, term Return of Premium (TROP) plans are more expensive than standard term plans.

   Let us understand by an example:
   Suppose a 35-year-old, non-smoker male opts for a 1 crore life cover with an annual mode of premiums, the approximate premiums that he will have to pay will be:

   Insurer	Plan Name	Premium for Pure Term	Premium for TROP
   ICICI Pru	iProtect smart	17,647	40,455
   HDFC Life	Click to Protect Super	18,934	47,712
   Max life	Smart Secure plus	16,513	30,734
   Bajaj	Bajaj Allianz Life e-touch	14,628	25,888
   Canara HSBC	Young Term Plan-Life Secure	14,003	25,005

2. No interest on the premiums you have paid

   Unlike the ULIP Plans, term insurance with a return of premium does not give any interest on the premiums you paid over the policy term. Even the premium amount is not adjusted for inflation.

3. Deduction of taxes

   When it comes to the maturity of the plan, you will be only paid the sum of all premium amounts you paid over the policy term minus the taxes and charges imposed by the insurer.

Conclusion

Term Return of Premium Plans (TROP) is the perfect solution for those who aim to create wealth along with life cover under the same plan. Trop Plans return all the paid Premium as a survival benefit, excluding paid taxes if the customer survives the whole policy term. The premiums of TROP Plans are more costlier than standard term Plans.