Term Insurance Return of Premium

Term Insurance plans are now the choice of majority, as the online term plans come with lower premiums for the benefit of the policy holders and are easy to purchase with just a few clicks. These plans do not give return on your premium amount, but give an excellent coverage for a small premium. Though the terms of the term insurance plan are excellent that has made many people go for it, some still felt it undesirable due to the non return of premium amount against this policy. Since this hitch was lingering the minds of the investors, certain insurance companies have come up with a new policy that could gratify the requirements of all in a term plan. It is the Term Insurance Return of Premium (TROP) policy, a low cost protection plan that stands unique in features from the regular term insurance products.

Read our article “Are You Choosing the Right Term Insurance Plan for understanding more about term insurance.

Key Features of TROP

Return on Premium ascertained – Of course, this is why the TROP was introduced, and now everybody looking to purchase term plans can have the guaranty that there will be a return benefit in your premium amount.

Premium period vs. Coverage period  – In this TROP plan, you can avail the benefit of paying premium for a limited period and availing coverage benefit for an extended tenure. For example, the coverage tenure can be anywhere from 20 to 50 years, but the premium tenure will be just around 11 years.

Accidental Death Benefit – The base of a term is the death benefit of the policy holder, and 50% of the base sum amount for accidental death benefit.

Tax Benefits – Policy holders can claim tax benefits under section 80 C and 10 (10D) of Income Tax Act, 1961.


Minimum Eligibility – 21 years

Maximum Eligibility – 55 years (however, the maximum age differs on the different term plans and term plan tenures you choose)

Policy Maturity Age – 75 years

Term Insurance with a guaranteed return of premium is a good choice for all those who are looking for a life protection with a return benefit from the investment made on the life protection life.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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