A term plan that refunds your money if you survive

BUT IT IS TWO TO THREE TIMES MORE EXPENSIVE THAN PURE TERM PLANS

- SAIKAT NEOGI

A term insurance plan with return of premium (TROP) is an attractive option for individuals seeking both life coverage and a potential return on their premiums. It is ideal for those who seek certainty over market-linked returns.

However, these plans come with higher premiums, around 1.8x to 2x the cost of regular term plans, due to the inclusion of a maturity benefit.

Varun Agarwal, business head, Term Insurance, Policybazaar.com, says TROPs are gaining popularity as they guarantee the refund of the total premiums paid (excluding GST and sometimes rider premiums) if the policyholder outlives the policy term. “This guarantee of not losing the premium money is making these plans popular,’ he says.

Higher pricing