What Is The Return Of Premium Benefit In Term Insurance?

When it comes to insurance purchase, term insurance is the life insurance product that policy buyers wish to invest in. One of the best ways to secure the financial future and eliminate stress from the life of loved ones, term insurance comprises numerous features and benefits. One of the key aspects of term insurance is the return of premium benefit. Let us uncover more about it in detail.

What is a Term Plan with Return of Premium? 

A term plan with return of premium benefit is like a standard term plan. It provides a life cover as well as a death benefit to the policy beneficiaries. However, what makes it different is that it comes with a maturity benefit. Policyholders interested in a term plan with return of premium benefit can buy it after paying an additional premium price. It must be noted that one can choose the required sum assured and policy period and pay the insurance premium accordingly. When the time comes and the policy gets mature, the insurance provider will return the premiums paid to the policyholder. 

Who Should Buy Term Insurance with Return of Premium?

Based on your objective, you can buy term insurance with return of premium. In most cases, it is the age, income source, lifestyle habits and medical conditions based on which one takes the decision. You can also analyze your financial condition based on the same parameters and make the right choice. 

Below mentioned are the ideal buyers of term insurance with return of premium: 

• Unmarried individuals with financial responsibilities of their parents
• Married people with no children (spouse dependent on your income source)
• Married people with children who want to save for higher education, marriage and other financial needs of their kids

What Are the Benefits of Term Insurance With Return of Premium?

Some of the key benefits associated with term insurance with return of premium include:

• RoP benefit, which gives reassurance
• Death benefit, which gives financial cover to family over unpredictable circumstances
• Tax benefits under Section 80C and 10 (10D) for which the premium paid towards the term plan and the benefit amount are tax-free

What Are Some of the Prime Features of Term Insurance With Return of Premium?

The major features associated with Term Insurance With Return of Premium include:

• Affordability
• Flexible premium payment options (one-time, regular, pay till 60, limited pay)
• Surrender value (For TROP with single premium variant, the surrender value is applicable after payment of a single premium; For TROP with limited pay variant and regular pay variant, it is applicable on payment of premiums for two full years.)

Does Term Insurance with Return of Premium Come with Riders?

Yes! If interested, policyholders can strengthen the coverage offered by TROP by adding riders of their choice. Various kinds of riders can be added based on the personal requirements to get comprehensive coverage.

Also read:-

• What Does Term Insurance Mean?
• Term Insurance Plan For Elderly Parents 

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.