Buy Best Term Insurance with Return of Premium in India in 2025

What if you could have a term insurance plan that not only offers financial protection for your loved ones but also refunds the premiums you’ve paid at the end of the policy term? That’s exactly what Term Insurance with Return of Premium (TROP) offers. Unlike traditional term insurance plans where the premiums are non-refundable, TROP ensures that you get both the peace of mind of life coverage and the assurance that your premiums won’t be lost. It’s an ideal choice for those who want to balance financial security with a potential return on their investment. Let's explore the best TROP options available for you.

What is a Term Insurance?

Term insurance is a pure life protection plan that provides financial security to your family in case of your unfortunate death during the policy period. It offers a high coverage amount at relatively low premiums, focusing solely on providing a death benefit (sum of money) to your nominees if you pass away within the policy-specified period (the term). It’s a cost-effective way that is designed to protect your loved ones who financially depend on you.

Top Term Insurance Plans in India in 2025 With Return of Premium 

The Indian insurance market offers several attractive term insurance policies with return of premium options. Each plan comes with unique features designed to meet different financial needs and preferences. Here are some plans that offer comprehensive coverage and financial benefits:

HDFC Life Click 2 Protect Super

It provides coverage and returns your premiums at maturity, balancing security and investment. They have different plan options, like Life, Life Plus, and Life Goal, to cover all your needs under one plan. Ideal for individuals seeking comprehensive protection with potential money-back benefits.

• Get back all premiums paid if you survive till the end of the policy term.
• Additional payout in case of accidental death during the policy term.
• Accelerated death benefit if diagnosed with a specified terminal illness (up to age 80).
• Option to increase the death benefit over time, up to 200%.
• Adjust your death benefit based on changing financial needs (Life Goal option).
• Premiums are waived in case of critical illness (WOP CI option).
• Premiums are waived in case of total and permanent disability (WOP Disability option).
• Add additional life cover for your spouse.
• Financial protection for parents or grandparents during their lifetime.

Note: WOP CI option means Waiver of Premium on Critical Illness

ICICI Pru iProtect Smart

A well-rounded plan that gives financial security to your family and gives back your money if you survive the policy term. They offer protection with life cover up to age 99 and critical illness benefits for 34 illnesses. Perfect for those wanting additional health protection alongside life insurance.

• It’s quite affordable, which makes it a great fit for those in a tight budget 
• It pays for 34 critical illnesses and no hospital bill is required 
• Covers you for 30 years without change in premium 
• Life cover on terminal illnesses (including AIDS)

Tata AIA Sampoorna Raksha Promise

It offers comprehensive coverage and the return of premium benefit, with flexibility in policy terms. This plan provides you the option to cover yourself till 85 years of age and live a worry-free life. Suitable for individuals looking for comprehensive financial planning solutions.

• Instant payment of 3 lakh on claim intimation 
• Inbuilt waiver of premium on diagnosis of terminal illness
• Option to defer premiums for up to 12 months with the Flexi Pay Benefit
• Whole life cover up to 100 years of age
• 15% lower premium for women

Axis Max Life Online Term Plan Plus

It secures your family’s future and refunds your premiums if you survive the policy term. The plan can be customized as per need with the help of riders. Designed for young professionals seeking simple yet effective insurance coverage.

• Instant payment on claim intimation (within 3 hours)
• Lumpsum payout on diagnosis of critical illness 
• Protection upto 85 years of age

SBI Life eShield Plan

It is government-backed term insurance with reliable coverage, offering flexible options like Level Cover and Increasing Cover. It is ideal for individuals seeking long-term financial protection for their families.

• You can avail Life cover upto 100 years (Whole life) or 79 years (other than Whole Life)
• The absolute sum assured on death remains the same throughout the policy term.

How to Choose the Best Term Insurance Plan?

Selecting the best term insurance plan with a premium return requires strategic thinking and careful evaluation. Here are some critical factors to make an informed decision:

• Coverage Amount: Calculate your family’s financial needs comprehensively. Consider outstanding loans, future expenses, and lifestyle maintenance. Moreover, aim for a coverage amount that provides comprehensive protection.
• Claim Settlement Ratio: Research the insurance company’s historical performance in settling claims. A higher claim settlement ratio indicates reliability and reduces potential future complications for your nominees.
• Policy Flexibility: Look for plans offering flexible terms like premium payment options, policy modifications, and conversion features. This ensures your insurance adapts to changing life circumstances.
• Compare Premium Rates: Don’t just look at the lowest premium. Compare overall value, including coverage amount, additional benefits, and claim settlement reputation. A slightly higher premium might offer significantly better protection.

Benefits of Buying Term Insurance Online from InsuranceDekho 

Online term insurance purchasing has revolutionized how individuals protect their family’s financial future. These digital platforms enable users to access multiple insurance options at their convenience, making the process simpler and more efficient. Let’s see what the key benefits of buying term insurance online are:

• Instant Comparison: Compare multiple return of premium plans instantly. You can view different policies, analyze coverage, and premiums without visiting multiple offices, helping you make an informed choice.
• Cost-Effective Options: Online platforms offer lower premiums for the best term insurance with return of premium. With reduced operational costs, insurers provide better pricing and savings through comparison tools.
• 24/7 Accessibility: Purchase term insurance anytime, anywhere without scheduling appointments. Online platforms provide round-the-clock access to information, application processes, and customer support. You can research and buy policies at your convenience, eliminating traditional time constraints.
• Paperless Documentation: Eliminate physical paperwork with digital document submissions. Upload and verify documents electronically, reducing processing time and environmental impact. Digital records are easier to track and maintain, providing a more streamlined insurance experience.
• Instant Policy Insurance: Receive policy documents immediately after approval. Online platforms typically offer instant policy generation and email delivery. You can start your coverage immediately without waiting for physical document processing.

Common Mistakes to Avoid When Buying Term Insurance Online

Online term insurance purchasing offers convenience but requires careful consideration. Below are some common mistakes to avoid when buying term insurance online:

• Insufficient Coverage: Avoid underestimating your family’s financial requirements. Many people choose lower coverage to reduce premiums. Calculate comprehensive needs considering inflation, future expenses, and long-term financial goals.
• Hiding Medical Information: Provide a complete and accurate health history during application. Hiding medical conditions can lead to claim rejection. Transparent disclosure ensures smooth claim processing and maintains policy validity.
• Ignoring Policy Details: Read the entire policy document carefully before purchasing. Grasp exclusions, terms, and conditions thoroughly. Don’t rely solely on marketing materials or agent explanations.
• Delayed Policy Renewal: Maintain continuous policy coverage by timely renewals. Set reminders for premium payments to prevent policy lapses. A discontinued policy means losing all accumulated benefits and conditions.
• Choosing Based Only on Price: Don’t select term insurance solely on the lowest premium. Consider the insurer’s reputation, claim settlement process, and comprehensive coverage. The cheapest option might not provide the best protection.

Choosing the right term insurance with return of premium ensures financial stability for your loved ones. A little extra effort now can save you and your family from future financial instability. While selecting the right coverage, check the fine print, and don’t skip medical tests. Make sure you don’t fall for common mistakes!

Buying term insurance online? Need help finding the right term insurance with premium returns? InsuranceDekho has got you covered; check it out now! We offer the best term insurance with return of premium options along with expert guidance, making your purchasing experience seamless.