With the introduction of term insurance policies, the premiums on these policies have reduced considerably. However, people in India still want more from their term insurance policy. As a result, the insurance providers have launched term insurance policies with a return of premium option. In this post, we will have a look at what a term insurance policy with the return of premium is and some of the best picks in this category.
What is a Term Insurance with Return of Premium?
Popularly known as ROP, the Return of Premium plans come with death benefits of standard term insurance policies along with an additional benefit of receiving the premiums paid for the policy back if the policyholder survives the tenure of the policy.
For instance, if you select a policy with a cover of Rs. 1 crore for 20 years whose annual premium is Rs. 10,000. The beneficiary of the policy will receive Rs. 1 crore if you die within the tenure of the policy. However, if you survive the policy tenure, you will receive the premiums you have paid for the policy i.e. Rs. 2 lakhs (Annual premium of Rs. 10,000 for 20 years).
Top 10 Best Term Plan With Return of Premium in India 2018
Now that you have understood what a ROP term insurance is, let us have a look at some of the best options.
10. HDFC Premium Guarantee Plan
The Premium Guarantee Plan from HDFC pays the assured sum if the policyholder dies within the policy tenure or returns the premiums at maturity of the policyholder survives.
9. Bajaj Allianz Term Care Plan
This plan also returns the premium on maturity if the policyholder survives the tenure or else the assured sum is paid to the beneficiary. Bajaj Allianz also offers many different plans under this scheme, namely Economy, Basic, Health, and Total with different benefits.
8. ICICI Prudential LifeGuard Plan- Return of Premium
With this policy too you can get your premiums back if you survive the policy tenure. Other benefits include additional rider benefits and you can also extend the policy for up to 5 years after the tenure without paying any additional premium.
7. Max Life Premium Return Protection Plan
Along with the death benefits paid when the policyholder dies within the policy tenure, this policy from Max Life also returns 105% of the total premiums paid if the policyholder survives. The assured sum will be increased to 150% of the actual assured sum in case of accidental death.
6. TATA AIA Life Insurance iRaksha TROP
With iRaksha TROP, you get 100% of the premiums back when you survive the policy tenure. The policy also offers a number of additional benefits like lower rates for female customers and discounted rates for non-smokers.
5. PNB Metlife Suraksha TROP
With PNB Metlife Suraksha TROP, you can get 110% of the total premiums you have paid for the policy if you survive the tenure of the policy. The additional 10% of the premium will include the policy fee but not the extra riders or additional premiums if any.
4. LIC New Jeevan Mangal Plan
With LIC’s NEW Jeevan Mangal Plan, you can get the premiums back if you survive the policy tenure. The policy can be purchased for a minimum of 1 year and a maximum of 15 years and the premiums can be as low as Rs. 60 per month.
3. Aegon iReturn Insurance Plan
The iReturn Plan from Aegon also returns the premiums paid when the policyholder survives the policy tenure. Moreover, the company also offers many different riders, like terminal illness benefit, critical illness benefit, accidental death benefit, etc.
2. Aviva LifeShield Advantage
With the LifeShield Advantage Policy, the policyholder can receive all the premium paid for the policy if the survive the policy tenure if all the premiums were paid on time. Moreover, you can also opt for the return of premiums for permanent total disability.
1. Aviva i-Shield
With the i-Shield policy from Aviva, you can receive 110% of the premium if the policyholder survives the policy tenure. Moreover, the policy also offers an additional benefit on the sum assured. If the policyholder dies between 11-20 years or between 21-30 years since the inception of the policy, the nominee will receive 110% or 120% of the assured sum respectively.
You can purchase these policies online to eliminate the tedious paperwork and pay lower premiums. But ensure that you carefully go through the terms and conditions of the policy before buying. Do you think these are the best term insurance plans in India with the return of premiums? Write a comment below and share your thoughts if any.