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Embedded with all the benefits of simple term plan, TROP offers income replacement and premium refund at maturity. Compare these cost effective plans at PolicyBazaar before zeroing in on one plan.
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About the Product

Compare Different Term Plans with Return of Premium at PolicyBazaar

Term plans with return of premium (TROP) are a variant of term/ pure protection plans with most of the features being common between the two plans. TROP plans come with an added advantage of income replacement along with the benefit of refund of entire premium amount at maturity if the policyholder survives the policy term. It is different to traditional term plans, where insurers pay only when the insured dies.


How Term Return of Premium Life Insurance Plans Work?

Consider a policy with Rs 20 lakh cover for 10 years for which the yearly premium is Rs 2000. If the insured dies, the family will be paid Rs 20 lakh (sum assured). However, if the insured survives the term, insurer will return the entire premium amount i.e, Rs 20,000 (Rs 2000x10).


Technically, a term plan with return of premium is a non participating term assurance plan. When compared with a term plan following features are notable:

      • Term plan offers only death benefits whereas a TROP plan has maturity benefit as well.
      • Because of this guaranteed “all premium back” feature, it is slightly higher priced than a term plan


Top Reasons to Buy TROP Plans

There is a one segment of customers who expect to get returns from an insurance policy. To cater to this section, companies have launched TROP plans. This type of term plan provides dual benefit. Firstly, they give you peace of mind by providing financial security to the family in case something unfortunate happens. Secondly, the plan offers premium return, which means total premiums paid during the tenure of the policy are paid back to the policyholder.


According to certified financial planners at PolicyBazaar, below are some top reasons to include TROP plans in your ambit.

      • Offers premium refund at maturity if a policyholder survives the tenure. So you don’t lose premium paid over the years.
      • Offer guaranteed returns on the premium paid excluding extra premiums and rider premiums, (if any).
      • Option to add riders makes it attractive as it becomes a complete protection plan which can be relied upon in case of unfortunate extremities of life.
      • TROP plans offer more premium payment options like yearly, monthly, etc.
      • Offers a ‘paid up’ option if you default on payment of premium. It means, if you stop paying premiums after three years the policy will continue but with reduced benefits.
      • Offers tax benefits as per the prevailing tax laws. Currently, the premium paid and the amount drawn are tax free under section 80 C and 10 (10D) of Income Tax Act, 1961.
      • Works on level premium concept which means premium remains constant once bought, unless lapsed i.e. contract broken. This makes it a must buy at an early age to enjoy the benefits at all life stages.


Tips to Facilitate Easy Comparison of Available TROP Plans

Our insurance experts at PolicyBazaar have come up with handy tips to smoothen your insurance buying journey.

      • Do not consider only the maturity benefit while selecting the insurer. The ones offering higher return might not be the most cost effective.
      • Selection of Higher Sum assured has discount offers and thus a better proposition.
      • Go for highest term available under these term plans on offer; the policy term is not extendable later.

We are not only an insurance portal dedicated towards offering  low cost premium quotes but we also pride ourselves on offering top notch customer services. Our knowledgeable licensed agents will be happy to supply information you need so that you choose the best term plan.

PolicyBazaar provides knowledge and information you need to make best financial decisions. Submit basic details like your name, annual income, coverage, etc, to compare and find lucrative plans and prepare for life’s unexpected twists.


It is our business to secure your future!


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Frequently Asked Questions

What is Term Return of Premium Insurance Plan?


Term Return of Premium Insurance Plan is like Term Plan but with the added advantage of Premium Refund at the end of the plan if the Risk Cover has not been paid during the tenure of the plan. Since TROP Plans have Premium Refund feature, they will have slightly higher premiums when compared to Term Plans.

Why Term Return of Premium (TROP) Insurance Plans?


Though the adequate insurance cover need varies from one person to another; as a thumb rule your TROP insurance cover should be at least 15 to 20 times of your gross annual income. Depending upon your age, the multiplier will decrease as you grow older.

How much life cover would you like?


Though the need varies from one person to other, as a rule of the thumb, your term insurance cover should have at least 20 times of your gross annual income. Depending upon your age, the multiplier will decrease as you grow older.

Documents Required (if any)

  • Age Proof
  • Identity Proof
  • Address Proof
  • Income Proof
  • Duly Filled Proposal Form
  • Some plans may require you to undergo Medical Tests


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If you’re reading this article, i presume somewhere you’re already aware of the benefits of term insurance plans and are looking for one more reason to convince yourself to buy it. having worked in a life insurance company for close to 5 years, i was always convinced of the benefits myself but never pushed my friends to purchase life insurance lest they may think that i’m hard selling my companies’ plans! but, one day, an incident occurred that changed my outlook.  there was a colleague ...
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