Term Insurance

Top 5 Term Plans With Maturity Benefits (TROP)

Nov 30, 2021

We all know that life is all about uncertainties. Our financial situation and financial requirements are pretty much uncertain too. So, it is always wise to invest in insurance policies to ensure financial security for yourself and for all your loved ones. Term plans are by far the most popular insurance policies. These policies guarantee financial security to a policyholder’s family in case they pass away. But, term plans are purely death benefit plans. Your money will go to waste if you survive the policy tenure. If you want your money back at the end of the policy term, you must consider buying a return of premium term plan (TROP).

In the following sections, we will discuss what return of premium term plans are. We will also provide you with a list of top 5 term plans with maturity benefits.

What is the Return of Premium Term Plan (TROP)?

So, what is a Return of Premium Term Plan or TROP? Simply put, these are term insurance plans with maturity benefits. Unlike typical term insurance policies, a customer who chooses to buy a return of premium term plan will surely receive their money at the end of the policy period. So, a TROP provides dual benefits to customers:

  • They assure the financial security of your family in case something unfortunate happens to you.
  • They also ensure that your hard-earned money will be returned to you if you survive.

So, let’s take a look at the top 5 return of premium term plans that you can choose from.

Top 5 Return of Premium Term Plans

  1. Max Life Smart Term Plan: Max Life Insurance provides the return of premium option under Max Life Smart Term Plan. The features of this plan are listed below:
  • This plan provides comprehensive protection against 40 critical illnesses which include cancer, heart attack, and heart attack.
  • It offers limited premium payment options like, limited pay, regular pay and pay till 60.
  • The premium payment options are quite flexible.
  • There is an option to increase insurance coverage.
  • There are significant tax benefits under Section 80C, 80D and 10 (10D) of Income Tax Act, 1961.
  • The plan includes multiple death benefit payout options including increasing monthly income and lump-sum payouts. As many as 7 different death benefit payout options are made available.
  • It also provides additional benefits to customers in the form of riders such as an accidental cover.
  • The plan provides life cover assurance up to 85 years.

2. ICICI Pru iProtect Smart Money Back: This TROP by ICICI Life Insurance not only safeguards your family in the event of some misfortune, but also provides you with a lump sum amount in case you survive. Its features are as follows:

  • Its life cover will take care of the financial needs of your family when you won't be there anymore.
  • You will receive a maturity benefit.
  • It offers a critical illness cover which covers 34 critical illnesses and it is optional.
  • There is an accidental death benefit too, which is again optional.

3. Exide Life Term with Return of Premium Plan: The features of this plan by Exide Life Insurance are:

  • This plan provides life insurance cover for the whole tenure. One can buy this policy without any hassles.
  • At the end of the policy term, you will receive a maturity benefit equal to 100% of the total premiums you paid.
  • If you buy this plan, you can choose to pay the premium for 5 years (Limited Premium) or for the entire term (Regular Premium).
  • Women can pay premiums equivalent to the premium to be paid by a man who is 3 years younger than her.
  • The amount which you will receive at the end of the policy term is exempted from taxation under Section 10 (10D) of the Income Tax Laws. The premium amount is also exempted from taxation under Section 80C. In case of addition of health related riders, the premium is exempted under section 80D of the Income Tax Act.

4. AEGON Life POS Guaranteed Return Insurance Plan (GRIP): This TROP has the following features:

  • The returns, be it death benefit or maturity benefit are guaranteed.
  • The maturity payout may be 225% to 325% of the basic sum assured.
  • Throughout the policy term, there will be a yearly increment of 10%.
  • A Loyalty Booster equal to 25% of the sum assured will be payable at the end of the tenure.
  • You will be eligible for tax benefits under Section 80 (C) and Section 10(10D).

5. Future Generali Term with Return of Premium:  This return of premium term plan offers the following:

  • There are two payout options namely, Option A: Lump sum protection and Option B: Income Protection.
  • You are free to choose the term of the policy and also the period during which you will pay the premiums.
  • In case of the sudden demise of the policyholder, their family will receive a death benefit.
  • You can opt for the Future Generali Accidental Benefit Rider. To avail of the benefits included in this rider, you just have to pay an incremental premium.
  • If you survive the term, you will receive 100% or 115% of the premiums that you have paid depending on the option you had chosen i.e. Option A or Option B.
  • Tax benefits under section 80 C and 10 (10D) are available.
  • Premiums are low for consumers who are women.

The following table provides a bird’s eye view of what the above insurance policies can offer to the buyers:

Sl. No.

Plan 

Entry Age (years)

Policy Term (years)

Death Benefit (INR)

Maturity Benefit (INR)

1.


 

Max Life Smart Term Plan


 


 

18-60


 

10-50


 

10 lakhs


 

100% of the total premiums paid (excluding the premium paid for an additional rider)

2.

ICICI Pru iProtect Smart Money Back

20-54

5-10

25 lakhs

 

3.

Exide Life Term with Return of Premium Plan

18-50

10-30 (Limited Premium)

12-30 (Regular Premium)

10 lakhs (Limited Premium)

5 lakhs

(Regular Premium)

100% of the total premiums paid

4.

AEGON Life POS Guaranteed Return Insurance Plan (GRIP)

18-65

10-20

 

225-325% of the basic sum assured

5.

Future Generali Term with Return of Premium 

18-55

10-35

Option A: 2 lakhs

Option B: 9 lakhs

100-115% of the premiums paid

Is a TROP Plan Suitable For You?

The choice of a return of premium term plan (TROP) depends only on your own financial needs and also that of your family. These plans will return the premium amount that you paid in case you survive the tenure. Simply put, these plans come with a maturity benefit, unlike simple term plans which only provide a death benefit. TROPs offer a death benefit as well if the policyholder suddenly passes away during the term. Besides, if you fail to pay the premiums after a period of time, the policy will not be terminated. Only the benefits will be cut short. 

But TROPs do not offer any interest. The policyholder will only receive the total premium amount on maturity. Moreover, the additional premiums you paid to avail of the riders will not be compensated for. 

So, before buying a plan you should always consider your financial situation and needs. You must also consider carefully the benefits that the insurance policy offers. Besides, the premiums should be affordable and the cover should be sufficient to meet the needs of yourself and your family. You should also be mindful of the claim settlement ratio (CSR) of a particular insurance company. Therefore, it is better to plan carefully and seek the help of an expert before you set out to buy a policy.

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