Term Insurance Return
of Premium
  • Term plan with Survival Benefits
  • Tax exemption up to 1.5 Lacs/annum
  • Guaranteed death benefits
term insurance return of premium
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Term Insurance Return of Premium

Indeed, there is a conscious awareness of the significance of the term insurance in the market. The breadwinners of the family are aggressively seeking knowledge and carefully buying term insurance plans that promise to pay the insured's family post his/her unfortunate demise to cater to their financial needs.

However, when it is said that life is uncertain and no one knows about the future, some aspiring policyholders meanwhile raise a question that what will happen to their term insurance if they complete the policy tenure. What will they get if they outlive their policy duration or etc.? No one wants to see their money going into vain just because they have survived their term insurance policy tenure. Here, Term Insurance Return of Premium comes into play as an answer to these queries.

Term insurance Return of Premium (TROP) is a nature of term insurance that works on similar lines but with an additional benefit i.e. survival or maturity benefit, whatever you may call it. As per the TROP, the policyholder is entitled to get the entire premium paid during the policy tenure return. This means that the Term Insurance Return of Premium offers dual benefits to the insured i.e. protection for family members as well as the return of premium that can be utilized by the insured. Hence, this becomes an ideal term insurance variant for people who are looking for some kind of return on their insurance plan.

Talking about some basics of Term Life Insurance with Return of Premium, there are some differentiating factors. Since the TROP comes with an additional benefit, the premium charged for this plan is comparatively higher than the regular term insurance policy as the policyholder is guaranteed to get the entire premium amount return.

Next is the tenure of this life insurance with premium return benefit as these plans come with a fixed duration such as 10, 15, 20, 25, and 30 years. Moreover, many such plans have maximum maturity age below 70 years, unlike traditional term life insurance policies.

Know More About: Term Life vs. Traditional Life Insurance- Which Is Better?

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Let's Simplify TROP with Example

Mr. Bhatia, a 30-year-old man living a healthy life with good habits, buys a Term insurance Return of Premium for INR 50 Lakhs. His payable premium comes at INR 12,718 annually for 40 years of duration i.e. the maturity of the policy.

Now, there will be situations here. The first situation is that if Mr. Bhatia passes away within the policy duration, then his family or the nominee mentioned in the plan will be given INR 50 Lakhs i.e. sum assured committed in the plan.

The second situation is that Mr. Bhatia outlives the policy tenure then he will be eligible for a survival benefit and receive INR 5,08,720 i.e. 12718 x 40 as per the Term Insurance Return of Premium plan.

Best Term Insurance with Return of Premium Plans 2023

The plan offers coverage for 64 critical illnesses, 360-degree protection, and enhanced safeguarding against accidental death.

Unique Features

  • 4 plan options
  • Live-stage coverage
  • Enhanced protection with riders

iProtect Return of Premium (Pros)

  • Income Benefit Post 60 Years
  • ROP with Life-stage cover
  • Survival Benefits

iProtect Return of Premium (Cons)

  • Income Benefits for a non-smoker
  • No Critical Illness Cover With LP
  • Critical Illness Caused by Sterility and Infertility

iProtect Return of Premium (Other Benefits)

  • Loyalty Discount of 5% & 2%
  • Critical Illness (CI) Benefit
  • Accidental Death Benefit Cover up to 2 Cr

iProtect Return of Premium (Eligibility Criteria)

  • Entry Age -18 Years
  • Max Entry Age- 65 Years
  • Minimum Sum Assured - NA
  • Maximum Maturity Age - 85 Years
  • Premium Payment Term - 5 To 40 Years

Offers financial security and a support system to the policyholder in an emergency. Provides a 5% (up to 200% of the base SA) increment in sum assured after every anniversary of the policy.

Unique Features

  • Terminal Illness cover
  • Premium Payment Choice
  • Joint Life Benefit

The plan provides pure term and health coverage, providing whole life cover and accidental total permanent disability.

Unique Features

  • Waiver of Premium(WOP)
  • Accelerated Critical Illness(ACI)
  • 4 variants

eTouch Online Term (Pros)

  • Shield
  • Shied Plus
  • Shield Supreme

eTouch Online Term (Cons)

  • No Loans Allowed
  • No Surrender Benefit
  • No Maturity Benefit

eTouch Online Term (Other Benefits)

  • Max Sum Assured 2 Cr
  • Sheild Super
  • High Sum Assured Rebate (HSAR)

eTouch Online Term (Eligibility Criteria)

  • Entry Age -18 Years
  • Max Entry Age- 65 Years
  • Minimum Sum Assured - 50 L
  • Maximum Maturity Age - 75 Yrs
  • Premium Payment Term - 10 to 40 Yrs

Offers financial protection to your loved ones and gives the flexibility to customize the plan according to your needs.

Unique Features

  • Tax Benefits
  • Joint Life Cover
  • Critical illness benefit

Mera Term Plan Plus (Pros)

  • Terminal Illness
  • Waiver Of Premium on (ATPD)
  • Accelerated Critical Illness Benefit

Mera Term Plan Plus (Cons)

  • No Policy Discount
  • No Policy Loan Allowed
  • No Maturity Benefit Without ROP Option

Mera Term Plan Plus (Other Benefits)

  • 4 Rider Option
  • 10% Step-up Benefit
  • Rebate on High Sum Assured

Mera Term Plan Plus (Eligibility Criteria)

  • Entry Age -18 Years
  • Max Entry Age- 65 Years
  • Min Sum Assured - 25L
  • Premium Payment Term - SP/RP/LP
  • Maturity Age - 99 years (Whole Life)

Exide Life Smart Term Edge

Smart Term Edge offers significant cover and helps the policyholders to create a strong financial base for their families in case of any eventuality resulting in the death of the policyholder.

Unique Features

  • 3 plan options to choose from
  • Up to 150% return of premiums on maturity
  • Flexible premium paying modes

Canara HSBC iSelect Smart360 Term Plan

A Non-Linked, Non-Participating, Individual, Pure Risk plan that offers 3 plan options with steady income benefits.

Unique Features

  • Life cover till 99 years
  • Child Care Benefit option
  • Income Benefit after 60 years

iSelect Smart360 Term Plan (Pros)

  • 3 Plan Options & Spouse Cover
  • Accidental Death Benefit
  • Accidental Total & Permanent Disability

iSelect Smart360 Term Plan (Cons)

  • No Policy Loan Allowed
  • No Maturity Benefit
  • No Benefit On Revival

iSelect Smart360 Term Plan (Other Benefits)

  • Critical & Terminal Illness
  • Option To Block Your Premium
  • 5% Loyalty Discount

iSelect Smart360 Term Plan (Eligibility Criteria)

  • Entry Age -18 Years
  • Max Entry Age- 65 Years
  • Minimum Sum Assured - 25 L
  • Maximum Maturity Age - 81 Yrs
  • Premium Payment Term - RP/SP/LP(5&25 Years)

Aditya Birla Life DigiShield plan is an easy-term insurance solution that allows you to protect your family’s future after your demise with 10 coverage options.

Unique Features

  • Accelerated Critical Illness Benefit
  • Coverage till 100 years of age
  • Enhanced protection with riders

Term Insurance Companies

Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.

Who Should Buy Term Plans with Return Of Premium?

We understand that making a selection for any plan or its benefits is always crucial to leverage the maximum profit of the plan. Likewise, it is also important to understand that who should take the Term Insurance Return of Premium plan.

  • Unmarried If a person is single with no dependents or responsibilities such as wife or kids then Term Insurance with Return of Premium can be beneficial for him/her as it will work like an investment that the person can get during the late years of life.
  • No long-term responsibilities: If a person knows that he/she will have no responsibilities during old age such as a loan or burden of kids' education or wedding as they are settled in their lives and are independent. Then a person can go for the Return of Premium Term Insurance plan wherein he/she can take the benefit of the premium paid during the policy tenure.
  • Married with kids: Also Term Insurance Return of Premium can be useful for those who have a huge set of responsibilities and are aware that they might need money after 40-50 years of duration. Then this premium received back in the form of maturity benefit can help them in surviving that crucial time.

Benefits of Term Insurance Return of Premium

As insurance plans are specifically chosen on the basis of their benefits, then Term Insurance Return of Premium also offers a set of advantages to the insured, such as:

Death Benefit

Like a standard term insurance plan, Term Insurance Return of Premium offers a death benefit where the sum assured amount is given to the nominee assigned by the policyholder.

Survival Benefit/Maturity Benefit

This plan stands unique with this differentiating factor. Term Insurance Return of Premium allows the survival benefit or popularly known as maturity benefit where the policy is returned the entire premium amount during the policy.

Tax Benefit

Investing in Term Insurance with Return offers a proposition to save tax under 80C of the Income Tax Act, 1961 where the premiums paid for the policy are eligible for tax deductions of up to Rs. 1.5 lakhs per annum. Additionally, the sum assured payout to the beneficiary is exempted from income tax under Section 10 (10D) of the tax laws

Surrender Value

Term Life Insurance with Return of Premium gives freedom to surrender the insurance plan to the policyholder if he/she plans to discontinue the plan. In that scenario, the surrender value is given to the policyholder depending upon the payment done by him/her.

Here is the comparison between Standard Term Insurance & Term Insurance Return of Premium

Standard Term Insurance Term Insurance Return of Premium
Being a complete protection plan, it only offers the death benefit Being an advanced variant, it offers death + survival benefit
The premium rate is pretty affordable The premium rate is comparatively higher
Sum assured offered to the insured is 10 times of annual premium Sum assured offered to the insured is comparatively lower

Final thoughts

Term Insurance with Return of Premium is a great option for the people who are looking for protection for their families as well as an investment plans for themselves. Thus this plan gives a complete win-win situation to the policyholder by giving one or another benefit.

Term Insurance Articles

Term Insurance Return of Premium: FAQs

1. What are the reasons for the return of premium in insurance?

A term plan with a return of premium provides for a refund of the premiums paid on a term life insurance policy if the policyholder doesn't die during the policy tenure.

2. What is the disadvantage of the return of premium in term insurance?

Although the return of premium life insurance refunds your money, but it's a lot costlier than a traditional term life insurance policy.

3. Does the return of premium in term insurance have tax benefits?

Yes, the return of premium in term insurance has tax benefits under Section 80C and 10(10D) respectively of the Income Tax Act, 1961.

4. How do you calculate the return of the premium?

To calculate the return of premium in term insurance you have to subtract the sum of all premiums from the maturity benefit amount, you will get your net returns.

5. Which type of insurance would be used for a return of premium rider in term insurance?

Term insurance has a return of premium rider which is generally offered as a separate endorsement but few insurance companies have specific policies that already include the built-in benefit of a return of premium rider.

What Our Customers Have to Say

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May 1, 2023

I seek help from PolicyX when it comes to purchasing any kind of insurance because they provide me with the best quotes and options for insurance

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Priya Sharma


December 14, 2022

PolicyX has a smooth service from booking policy to verification. Employees are very patient and have good knowledge and help you throughout the process. Had great experience dealing with them

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December 9, 2022

I had many confusions regarding the term policies . But Policyx has handled it well, m happy that they are my wayfarer in this journey.

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Prerna Kumari


July 11, 2022

Good company. Presents nice term insurance plans and flexible plans also. My husband has brought one for the family.

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Priya Sangwan


July 11, 2022

IndiaFirst Term Insurance company ensures that your family s needs are looked after. One of the best companies offers a term plan per your needs.

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Priyanshi Deewan


July 6, 2022

I recently received the claim amount of the policy that my husband had brought for us. I am glad that the company understands the needs of its customers and their families. Well done Canara HSB...

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Rishabh Kumar


July 6, 2022

I bought a term plan with Canara HSBC for the protection of my family and have been satisfied with the benefits received. It is simple and easy to buy their plans.

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Samarth Gaur


July 6, 2022

I am very happy with the term plans offered by the Canara HSBC Life Insurance company. The plans offer comprehensive coverage and I am sure will support my family after my demise.

Naval Goel

Reviewed By: Naval Goel

Naval Goel is the CEO & founder of PolicyX.com. Naval has an expertise in the insurance sector and has professional experience of more than a decade in the Industry and has worked in companies like AIG, New York doing valuation of insurance subsidiaries. He is also an Associate Member of the Indian Institute of Insurance, Pune. He has been authorized by IRDAI to act as a Principal Officer of PolicyX.com Insurance Web Aggregator.