Term Insurance plans are now the choice of the majority, as the people are becoming aware of the importance of the financial security of their family. When it comes to buying term plans, people tend to prefer online term insurance plans as it offers cover at lower premiums and it’s easy to buy as well.
Typically, a term plan offers only the life cover and it does not pay the premiums back but gives the extensive coverage at a small premium. However, with the changing needs, people are also looking for plans that offer life cover along with the return of premium option. Here, comes the role of Term Insurance Return of Premium (TROP) policy that offers the win-win aspect for the policyholder that means it will offer the life cover (at term during the policy term) and returns the premiums paid (at maturity), whichever occurs earlier.
TROP plans is best for buyers who want some benefit at the maturity plus death cover. This policy pays the death cover amount to the nominee in case of death of the insured during the policy term.
Read our blog “Are You Choosing the Right Term Insurance Plan” for a better understanding of the term insurance.
Why You Should Buy a TROP Policy?
People nowadays want to live a long & healthy life with family and friends. In order to prolong our life, we need to opt for a healthier lifestyle. Moreover, we invest in income security opportunities that will ensure financial security for your family & loved ones.
If we live life happily and in a positive way, there is a possibility that we live till the end of the term policy. In this scenario, you should go with a Term Insurance Return of Premium (TROP) policy that returns the premiums on your survival at maturity of the term policy.
Term insurance with return of premium benefit comes with an additional cover like the waiver of premium, disability cover, accidental death benefit, critical illness cover, and many others.
By choosing a TROP policy, you will ensure financial security and complete peace of mind for you & your family.
Key Features of Term Insurance Return of Premium Policy
Return of Premium Guaranteed
Nowadays, people are seeking to buy term plans that come with the option of premium return benefit. With a TROP policy, you will get an option to get the premium back in the event of your survival at the maturity of the term policy.
Flexible Premium Paying Term
In a TROP policy, you will have the option to pay the premium for a limited period and avail coverage for the long term. For instance, the premium paying term is 11 years but the coverage you can opt for 20 years.
Under a TROP policy, you can attach several riders to accidental death, disability benefit, premium waiver, and critical illness cover to enhance the coverage for your life.
You can take advantage of tax benefits under the Income Tax Act, 1961. Under section 80C for the premiums paid and 10(10D) for receiving the maturity benefit.
Term Insurance Return of Premium is a great choice, as it offers a life cover and return of premium benefit. So, you can avail of all-round protection for your family. You are required to assess your family’s financial needs and then choose a TROP policy to get a comprehensive life cover that will offer the premium return option if you survive through the policy term.