Should you buy a term plan with a return of premium?

Yes, if you aim to generate wealth and be insured under the same plan, the term plan with a return of premium is the perfect choice for you.

Is there any grace period in TROP?

Yes, the term return of premium plan offers a grace period of 30 days and it is 15 days for monthly premium payment.

What is the minimum eligibility criteria for TROP?

The minimum entry age for a TROP is 18 years.

Should I buy a pure term plan or a term insurance plan with a return of premium?

A return of premium plan comes with higher premiums compared to a normal term plan. However, it gives the facility to take back all the premiums after the completion of the policy term after exclusion of taxes.

Written by varun saxena

Published: 14 Aug 2024

Updated: 27 May 2026

6 min read

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IRDAI Licensed

Term Insurance with Return of Premiums

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

TROP plans provide dual benefits to customers, offering both death and survival benefits.

Top Term Plans with Return of Premium in 2024

Given below is a list of top Term Plans with Return of Premium (TROP) in 2024.

S.No.	Insurance Provider	TROP Plan	Claim Settlement Ratio (2021-2022)	Entry Age	Minimum Sum Assured
1.	PNB MetLife Insurance	PNB MetLife Mera Term Plan Plus	97.33%	18-50 years	Rs. 50 Lakh
2.	ICICI Prudential Life Insurance	ICICI Prudential iProtect	97.82%	18-60 years	Rs. 75 lakh
3.	SBI Life Insurance	SBI Life Smart Swadhan Plus	97.05%	18-65 years	Rs. 5 lakh
4.	Max Life Insurance	Max Life Smart Term Plan	99.34%	18-65 years	Rs. 25 lakh
5.	Aditya Birla Sun Life Insurance	Aditya Birla Sun Life DigiShield Plan	98.07%	18-65 years	Rs. 50 Lakh

Top Term Plans with Return of Premium - At a Glance

Here are some of the best TROP plans in the Indian market.

PNB MetLife Mera Term Plan Plus
A non-linked, pure-risk term insurance plan that provides life cover till the age of 99 years, even if you choose a limited premium paying term. Under this plan, customers can opt to insure their spouse within the same plan, with options for return of premium on survival to make a truly comprehensive protection solution.
ICICI Prudential iProtect Plan
ICICI Prudential iProtect term plan is one of the first term plans in the insurance industry that offers claim payment on the diagnosis of any of 34 critical illnesses. The claim for these benefits will be paid upon first diagnosis, without requiring hospital bills. Under this plan, the policyholder can also opt for a ₹1 crore accidental death benefit without any rider.
SBI Smart Swadhan Plus Term Plan
A non-linked, non-participating term insurance plan with return of premium features, which aims to provide life cover up to the whole policy term as well as return all paid premiums at maturity. Like other term insurance plans, this plan also provides a grace period of 30 days from the premium due date for yearly and half-yearly premium paying modes.
Max Life Smart Term Plan
A non-linked, non-participating term plan with a return of premium feature. Under this plan, a claim will be paid if the customer is diagnosed with any of 40 listed critical illnesses by choosing critical illness benefits. Under this plan, the customer can get all paid premiums back after the completion of the policy term, excluding taxes paid.
Aditya Birla Sun Life DigiShield Plan
Aditya Birla Sun Life DigiShield Term Plan offers the flexibility of choosing 10 different options according to your varied protection needs. With the availability of an accelerated critical illness benefit, it covers 42 specified critical illnesses on payment of an additional premium.

Benefits of Term Return of Premium (TROP) Plans

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

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

Key Considerations Before Opting for a Term Plan with Return of Premiums

Here are some key considerations for TROP plans:

TROP plans are generally more expensive than standard term plans.

For example:
Suppose a 35-year-old, non-smoker male opts for a ₹1 crore life cover with an annual premium payment mode, the approximate annual premiums would be:

Insurer	Plan Name	Pure Term Premium	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

No Interest on Premiums Paid

Unlike ULIP plans, Term Insurance with Return of Premium does not offer any interest on the premiums paid over the policy term. The premium amount is also not adjusted for inflation.
Deduction of Taxes and Charges

Upon maturity, you will receive the sum of all premiums paid over the policy term, minus any applicable taxes and charges imposed by the insurer.

Summary

Term Return of Premium (TROP) plans offer a unique solution for individuals seeking both life cover and a return of their premiums. TROP plans return all paid premiums as a survival benefit (excluding taxes) if the customer survives the entire policy term. However, TROP plans are generally more expensive than standard term plans.