- High coverage at a low premium
- Financial protection for your family’s future
- Tax benefits up to Rs. 46,000`` under Section 80C and 10(10D)
- Dedicated claim assistance
- Customisable plans to suit your needs
-
People’s trust in Bajaj
-
10 million+
Customers
-
3
Insurance partners
In summary
Key highlights:
- Provides financial protection for your family during the policy term.
- Returns premiums paid if you survive the policy term.
- Offers both death cover and survival benefits.
- May be enhanced with riders such as critical illness or accidental cover.
- Premiums are generally higher than a regular term insurance plan because of the premium return feature.
- Can offer tax benefits under applicable tax laws.
Understanding how returns of premium plans work can help you decide whether they align with your protection and financial goals. Compare available options to assess coverage, benefits, and premium requirements.
What is a term insurance plan with return of premium (TROP) plan?
Importance of term insurance
A Term Insurance Plan with Return of Premium (TROP) gives you the dual benefit of life cover and premium payback. It protects your family financially during the policy term, and if you outlive the policy, the premiums you've paid are returned to you (as per the policy terms).
On the other hand, a regular term insurance plan is designed purely for financial protection. If the insured person passes away during the policy term, the nominee receives the sum assured. However, if the policyholder survives the term, the policy ends and no amount is paid.
Key benefits of term insurance with returns of premium
Get your premiums back
One of the biggest advantages of TROP is that if you survive the policy term, you receive the premiums paid back (as per policy terms). This can be appealing if you'd like some value returned at the end of your policy.
Financial protection for your family
Like a regular term plan, TROP provides life cover during the policy term. If something happens to you while the policy is active, your nominee receives the sum assured, helping your loved ones manage their financial needs and financial goals.
Long-term value
While TROP plans generally cost more than regular term insurance, they combine life cover with a premium return feature. This makes them a suitable option for individuals who want financial protection along with a payout if they outlive the policy term.
Offers rides to enhance your coverage
Many insurers allow you to strengthen your coverage with optional riders, such as:
- Critical illness cover
- Accidental death benefit
- Permanent disability cover
These add-ons can provide additional financial support during unexpected situations.
Tax benefits:
TROP plans may offer tax benefits on the premiums paid and the policy benefits received, subject to the prevailing tax laws and eligibility conditions.
Looking for protection with a premium return feature? Compare TROP plans, explore rider options, and choose a policy that aligns with your financial goals and your family's future needs. Compare plans and get quote now!
Key features of term insurance plan with return on premium options
| Feature | Description |
| Dual benefit | Provides life cover and premium return feature |
| Maturity benefit | Returns premiums paid on policy survival, subject to policy terms |
| Death cover | Sum assured paid to nominee on the insured's death during the policy term |
| Savings element | Offers premium return at maturity |
| Flexible premium options | May offer regular, limited, or single premium payment modes |
| Rider availability | Additional protection through optional riders |
| Tax benefits | Eligible under applicable tax provisions |
How does a term insurance with return of premium work?
Suppose you purchase a return of premium term insurance plan with:
| Policy details | Value |
| Sum assured | Rs. 30 lakh |
| Policy term | 10 years |
| Annual premium | Rs. 3,000 |
Scenario 1: Death during policy term
If the insured passes away during the 10-year policy term, the nominee receives the death cover of Rs. 30 lakh, subject to policy terms and conditions.
Scenario 2: Survival till policy ends
If the insured survives the entire policy term, the premiums paid over the 10 years are returned as per the policy terms and conditions.
This structure provides both financial protection during the policy term and a pays back your money if the policyholder survives.
Term Insurance—big coverage, affordable premiums! Secure your family’s future with affordable protection. to get insured!
Who should consider TROP?
- Anyone who wants guaranteed returns along with life cover protection.
- People who prefer not to lose the premiums they pay if they survive the term.
- Those looking for both insurance protection and a savings component.
- First-time insurance buyers who want security and maturity benefits.
- Individuals seeking tax benefits while protecting their loved ones.
- Those who value peace of mind knowing their investment will return to them if they outlive the policy.
Who can buy a Term Plan with Return of Premium (TROP)?
Following are the common eligibility criteria for getting a term plan with return of premium:
- Individuals aged 18 to 65 are generally eligible for a term insurance with return of premium.
- The applicant must meet the insurer’s health and income criteria.
- Non-smokers and those with a healthy lifestyle may receive better premium rates.
- Policyholders can choose a coverage period, typically ranging from 10 to 30 years.
How can you choose the right return for a premium term insurance plan?
Consider these factors before choosing:
- Assess your family's financial protection requirements.
- Compare premium costs across insurers.
- Review the claim settlement performance of the insurer.
- Check available rider options and their relevance.
- Understand policy exclusions and conditions.
- Compare maturity benefits and premium return provisions.
- Select a policy term that aligns with your financial responsibilities.
A careful comparison can help you identify a plan that balances affordability, protection, and maturity benefits.
Get term insurance for all-round protection—financial security, tax benefits, and peace of mind. Compare and get quote!
Why is the term plan with return of premium right for you?
A return of premium plan can appeal to individuals who want life cover without feeling that their premiums are entirely spent if they survive the policy term.
It provides financial protection for your loved ones during the policy term while offering a maturity payout if no claim occurs.
For some policyholders, this combination of protection and premium return creates greater confidence in long-term financial planning.
How to buy term insurance with return of premium plan?
Step 1: Compare available plans
Review policy features, premium costs, coverage amounts, and rider options.
Step 2: Estimate your coverage requirement
Determine the sum assured based on your family's financial obligations and future goals.
Step 3: Complete the application
Fill in personal, financial, and health-related details accurately.
Step 4: Submit required documents
Provide identity, address, income, and other supporting documents as required.
Step 5: Complete medical assessment
Some insurers may require medical examinations depending on age, coverage amount, or health profile.
Step 6: Pay the premium
After approval, pay the premium and activate your policy coverage.
What are the riders available for term plan with return of premium?
| Rider | Description |
| Accidental death | Extra payout in case of accidental death, ensuring additional financial security for your family. |
| Critical illness | Lump sum payout upon diagnosis of specified critical illnesses, helping cover treatment costs. |
| Waiver of premium | Future premiums waived if you face disability or critical illness, keeping your policy active. |
| Income benefit | Provides regular monthly income to your nominee along with sum assured payout, offering continued support. |
Always review rider terms, exclusions, and costs before adding them to your policy.
Difference between term insurance and term insurance with return of premium
| Feature | Term Insurance | Term Insurance with Return of Premium |
| Maturity Benefit | No payout on survival; policy ends if you survive the term. | Premiums returned at maturity, ensuring you get back what you paid. |
| Premiums | Lower because there's no maturity payout. | Slightly higher due to guaranteed return of premiums. |
| Savings Component | None; pure protection only. | Yes; combines protection with a savings element. |
| Death Benefit | Pays sum assured to nominee on death. | Pays sum assured on death as well. |
| Suitable For | Those wanting affordable pure protection. | Those wanting protection plus guaranteed return of premiums paid. |
Conclusion
A term insurance with return of premium plan offers a combination of life cover and premium return benefits. It helps protect your family's financial future through a death cover while also providing a maturity payout if you survive the policy term, subject to policy conditions.
While premiums are generally higher than a regular term insurance plan, many individuals value the reassurance of receiving their premiums back at maturity. Before making a decision, compare policy features, premium costs, rider options, and eligibility conditions to determine whether a return of premium plan aligns with your financial goals and protection needs.
| Related articles | ||
| Life insurance newborn | Life insurance definition | IRDAI full form |
Explore more and stay informed
Frequently asked questions
Term insurance with return of premium
What does term insurance with a return of premium mean?
Term insurance with return of premium is a policy that provides life cover during the policy term and returns the premiums paid if you survive the policy term, subject to policy terms and conditions. If the insured passes away during the policy term, the nominee receives the death cover.
What kind of term coverage do return of premium plans offer?
Return of premium plans offer standard term insurance coverage, providing a death cover to beneficiaries during the policy term, with the added feature of returning all premiums paid if the policyholder outlives the term.
What are return of premium charges?
Return of premium charges refer to the additional cost built into the premium that helps fund the maturity benefit. Since the insurer returns premiums paid at maturity, these plans generally have higher premiums than regular term insurance plans.
Is buying a term plan with a return of premium a good decision?
Opting for a term plan with a return of premium is suitable if you seek both life coverage and guaranteed payback. It ensures financial protection while also refunding your investment.
How does term insurance differ from term insurance with a return of premium?
Standard term insurance offers only a death cover, whereas a term plan with a return of premium refunds the total premium paid if the policyholder outlives the policy term.
What payout options are available under term insurance with a return of premium?
Payout options vary by insurer and policy. Depending on the plan, the death cover may be paid as a lump sum, periodic income, or a combination of both, subject to the terms and conditions of the policy.
How is the premium calculated in return of premium term plans?
The premium is calculated based on factors like your age, health, policy term, sum assured, and additional riders. It is generally higher than pure term plans because of the maturity benefit component.
Can riders be added to term insurance with return of premium?
Yes, most insurers allow you to add riders such as accidental death, critical illness, waiver of premium, and income benefit riders to enhance your policy coverage.
What is the ideal policy term for a return of premium plan?
The ideal policy term depends on your financial responsibilities, future goals, and protection needs. Many individuals choose policy terms that align with major milestones such as children's education, loan repayment periods, or retirement planning objectives.
