Archive · 5 Dec 2025
Term Plans with Return of Premium Gain Popularity
Term Insurance with Return of Premium (TROP) plans are becoming popular in India.
These plans offer life coverage and refund the premiums paid if the policyholder survives the term.
They are ideal for those who want certainty over market-linked returns.
However, TROPs are more expensive, costing 1.8x to 2x more than regular term plans.
The maturity benefit is usually 105% of the total premiums paid.
Policyholders should consider factors like debt commitments, number of dependents, and long-term financial goals when determining the coverage amount.
It's important to check the insurer's claims settlement ratio and ensure the plan offers flexibility in premium payment options.
TROPs also have additional features like the waiver of premium benefit in case of disability or critical illness.
Term Insurance with Return of Premium (TROP) plans are gaining popularity for offering life coverage and refunding premiums if the policyholder survives the term.
TROPs cost 1.8x to 2x more than regular term plans due to the inclusion of a maturity benefit.
The maturity benefit in TROPs is typically 105% of the total premiums paid.
Policyholders should consider factors like debt commitments, number of dependents, and long-term financial goals when determining the coverage amount.
It's important to check the insurer's claims settlement ratio and ensure the plan offers flexibility in premium payment options.
- Who
- Individuals seeking life coverage and potential return on premiums
- What
- Term Insurance with Return of Premium (TROP) plans
- When
- Upon policy maturity or in case of death
- Where
- India
- Why
- To provide life coverage and refund premiums if the policyholder survives the term
- Plan Type
- Term Insurance with Return of Premium (TROP)
- Premium Cost
- 1.8x to 2x higher than regular term plans
- Maturity Benefit
- 105% of total premiums paid
- Coverage Amount
- 15-20 times annual income
- Claims Settlement Ratio
- Important for insurer reliability
- Premium Payment Flexibility
- Annual, half-yearly, quarterly, or monthly options
- Additional Features
- Waiver of premium benefit for disability or critical illness