While we can’t predict what’s coming, we can prepare for it. And when it comes to protecting your loved ones and your savings, choosing the right term plan insurance is key. But what if your insurance plan could offer not only protection but also give you back the money you invested?
That’s where term insurance with return of premium (TROP) steps in, offering the perfect balance of security and savings. This plan helps ensure your family is financially protected, while also refunding your premiums if you outlive the policy. A win-win? Absolutely.
Let’s explore how this smart insurance product works and why it could be one of the most future-proof financial decisions you ever make.
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What is Term Insurance with Return of Premium?
Term insurance with return of premium is a unique kind of life insurance plan. Just like regular term plan insurance, it offers a death benefit to your family if something happens to you during the policy term. But here’s the twist: if you survive the policy period, the insurer returns the entire premium amount you paid, excluding taxes and add-on costs.
This means you’re not only covered in case of emergencies but also rewarded for completing the journey safely. You protect your family and secure your money, too.
Why TROP Is a Game-Changer
Let’s break down the key advantages of choosing a term insurance with return of premium policy:
Dual Benefit: Protection + Savings
You don’t just get life coverage—you also receive all your premiums back at the end of the term, which you can reinvest for future goals or use for retirement.
Flexible Premium Payment Options
You can pay monthly, quarterly, half-yearly, or annually—whatever suits your financial planning style best.
Paid-Up Option
If you lose a stable income stream, the policy offers a paid-up option so you don’t lose your insurance entirely. It’s a flexible solution during tough times.
Tax Advantages
Enjoy tax savings on premiums paid under Section 80C, and receive maturity benefits tax-free under Section 10(10D) of the Income Tax Act.
Let’s consider the case of Rajesh, a 35-year-old IT professional.
Rajesh chooses a 25-year term insurance with return of premium plan and pays Rs. 15,000 annually. Over 25 years, he ends up paying Rs. 3,75,000 in premiums. Thankfully, he lives a long and healthy life and doesn’t need to make a death claim.
Since he opted for TROP, Rajesh gets all his Rs. 3,75,000 back at maturity.
Now, let’s add a tax angle. Suppose Rajesh falls in the 30% tax bracket. By investing Rs. 15,000 per year, he saves Rs. 4,500 in taxes annually under Section 80C. Over 25 years, that’s a total tax saving of Rs. 1,12,500.
Without the plan, Rajesh would have not only lost this tax benefit, but also the opportunity to recover his investment.
This makes his total benefit Rs. 3,75,000 (refund) + Rs. 1,12,500 (tax saved) = Rs. 4,87,500—without counting potential reinvestment returns.
Affordable Premium Rates
While the premiums are slightly higher than regular term plan insurance, the return of premium feature makes it a value-packed deal.
TROP vs. Regular Term Plan Insurance: A Quick Comparison
| Feature | Term Plan Insurance | Term Insurance with Return of Premium |
| Death Benefit | Yes | Yes |
| Maturity Benefit | No | Yes (Refund of Premium) |
| Premium Cost | Lower | Slightly Higher |
| Tax Benefits | Yes | Yes |
| Ideal For | Pure risk coverage seekers | Those seeking coverage + savings |
Who Should Consider a TROP?
A term insurance with return of premium is ideal for:
- People who want to secure their family’s future, but also want their investment back
- First-time policyholders looking for peace of mind and value
- Professionals with long-term financial goals (retirement, child education, home buying)
- Those in higher tax brackets seeking to maximise deductions under Section 80C
Conclusion: Invest in Protection with a Bonus
In today’s unpredictable world, financial protection is non-negotiable. But wouldn’t it be better if your insurance also helped you build wealth?
That’s exactly what a term insurance with return of premium plan offers—protection for your family and a money-back guarantee for your peace of mind. With options like Aviva Protection Plus, you not only protect your future but also ensure that your investment pays off.
