What is term insurance with return of premium (ROP)? You might have heard about term insurance plans very well, but do you know that now you can get your money back for a term plan also. Yes, in this article I will share about the new types of term insurance plans in India where you will get your paid premium back.
Generally term plans are very simple in structure. Just pay the premium and get a life cover of huge sum assured value. E.g for a 1 crore life insurance you may have to pay a nominal yearly premium of Rs 10,000 – Rs 15,000 max. But the paid premium amount will not get back to your kitty in case you complete the policy term.
Best Term Insurance With Return of Premium (ROP) Plan
Generally due to this nature of term plans, people mostly don’t like to buy term insurance plans even if the premium is very low. In fact if you are looking for cheapest insurance plans then online term insurance plans are only option for you.
That’s why the concept of return of premium has come for term plans. Now people are happy that they will get back all the paid premiums they have paid through the entire policy term if they survive at the end of policy term. Although there is no extra interest on payment or return on premiums paid.
List of Term Plans With Return of Premiums 2016
These are some of the term insurance plans that offer a return of premium on maturity.
- Max Life Premium Return Protection Plan
- ICICI Prudential LifeGuard
- Tata AIA Life Insurance iRaksha Term Plan
- MetLife Suraksha Term Plan
One thing you should take care while buying such term plans that you should not compromise the sum assured value to save some money on premium. Generally the premium will be higher compared to typical term plans. That means for a sum assured value you have to pay a higher premium in case of term plans with maturity benefit.
Example of Term Life Insurance Plans with Survival Benefits
Let’s try to understand these kind of plans with a simple example.
Mr. A has bought a term insurance plan of 1 crore sum assured value. And he is paying a premium of Rs 10,000 for 20 years policy term. Now the calculation will like below.
Total Premium Paid in 20 years = 10,000 X 20 = 2,00,000 ( 2 Lakh)
That means in case of Term Life Insurance Plans with Survival Benefits, you will get the entire 2 lakh paid as premium at the end of policy term. Sounds good, but if you compare with a typical term plan for the same 1 crore insurance, you will find the the premium amount will be much lower.
So, think properly and go as per your need and understanding only. If you are looking for the best Term Life Insurance Plans with Survival Benefits, then I will say it will always the plan that you are comfortable with, understand how it works and how it will be beneficial for your case.
Do share your comments or any query related to term plans by writing a simple comment below. I would love to address them as per my best knowledge.