Term insurance policies are protection-oriented plans that offer a risk cover against death to the life assured. This ensures that the life assured’s family is financially protected against untimely eventualities.
While most term insurance policies only offer a payout to the nominee if the policyholder succumbs to an untimely death during the policy tenure, certain term life plans called TROP (Term Return of Premium) plans come with a ‘return of premium’ feature, wherein all the premiums paid during the policy tenure will be returned to the policyholder at maturity of the policy.
Thus, these policies provide returns as well as a comprehensive coverage. Purchasing a TROP plan is ideal for those individuals looking for a savings-cum-protection instrument since this lump sum amount can help one meet key financial goals in one’s life. However, in order to avail the maturity benefit, the policyholder will need to keep the policy active by paying all due premiums as per the premium payment schedule.
Listed below are certain term life insurance plans with return of premium benefits that are offered in India.
*Note: This is not an exhaustive list.
1. Max Life Premium Return Protection Plan: The Premium Return Protection Plan from Max Life is a term insurance policy that offers comprehensive coverage to the policyholder and also provides returns at maturity of the policy. The features of this policy are listed below:
2. Aegon Life iReturn Insurance Plan: The iReturn Insurance Plan from Aegon Life is an online term insurance policy that offers a life cover and comes with an inbuilt terminal illness cover. Further, this policy also returns all premium paid during the policy tenure to the policyholder at the end of the tenure. The key features of this plan are:
3. SBI Life – Saral Swadhan+ Plan: The Saral Swadhan+ Plan from SBI Life Insurance is a non-participating, non-linked, individual term insurance policy. The key benefit of this policy is that at maturity of the policy, you will receive a guaranteed benefit amounting to 100% or 115% of the overall premiums paid during the policy tenure based on whether you opted for a 10-year policy tenure or a 15-year policy tenure. The key features of this policy are listed below:
4. Tata AIA Life Insurance iRaksha TROP: The iRaksha TROP from Tata AIA Life Insurance is an online term insurance policy that provides financial security to the policyholder’s dependents by way of the life cover and also returns all premiums paid at the completion of the policy term. The key features of this plan are:
5. Aviva i-Shield Plan: The i-Shield Plan from Aviva Life Insurance is term insurance policy with a ‘return of premium’ option that is offered at a nominal premium rate. Policy buyers will need to be between 18 years and 55 years of age to purchase this plan and can choose a sum assured between Rs.15 lakh and Rs.5 crore. A few other features of this policy are listed below:
In conclusion, a term insurance policy that provides a maturity benefit is a smart choice if you are looking for a basic life insurance product that also offers returns. However, before you select a particular policy, make sure to compare various policies, check the premium rates, and read through the policy terms and conditions in order to ensure that you are able to make an informed decision.
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