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Differences Between TROP and Money-Back

Published On Jul 28, 2021

TROP is the acronym for a term plan with return of premium. It has been carefully constructed to meet the requirements of the buyers. It also provides the benefit of return premium as a survival benefit to the insured if they survive the policy term.

A money-back policy is a life insurance policy where the life assured receives a proportion of the amount of the sum assured at regular intervals. It also provides benefits like survival, death, and maturity benefits. The terms of this plan are 20 and 25 years.

Advantages of TROP

  • One of the biggest advantages of investing in a term plan with return of premium is if you survive the whole policy term, you receive the entire premium payments you have made in a term plan with a money-back plan.
  • This plan is highly affordable. Despite being a little more expensive than standard term plans, when compared to other life insurance plans, Trop is highly affordable. This gains a considerable amount of points while a customer compares to buy an insurance plan.
  • If you want to extend the coverage of this plan, you can buy some optional riders and add-ons. Add-ons help you to cover the aspects that are not generally covered in TROP plans. When you buy add-ons, the additional premium that you pay is not returned on maturity to the life assured.
  • TROP is also eligible for tax deductions as it is also a type of life insurance plan. Under the Income Tax Act, 1961, section 80C, you are eligible for a tax deduction if up to Rs 1.5 lakh is paid towards a life insurance policy in a financial year.

Advantages of Money-Back

  • The life assured gets a part of the sum assured at regular intervals after a few years of starting the plan until maturity under survival benefits.
  • When the policy matures, the life assured receives a maturity benefit which includes bonuses.
  • In case of the sudden death of the life assured, the nominee will receive a death benefit which includes sum assured and bonus accumulated on the policy. It does not include survival benefits as the life assured did not survive the term of the plan.

Differences Between Money-Back and TROP





Money-Back provides benefits like survival benefit, death benefit, tax benefit, and maturity benefit. 

Term Plan with return premium offers tax benefit, maturity benefit, and death benefit. The advantages of TROP are optional riders, return of premium, and affordability.


The money-back policy offers plans for 20 to 25 years. 

Term Plan with Return Premium offers plans that range from 5 to 35 years.

Aspects to consider

Calculation of term insurance coverage, tenure of the plan, claim settlement ratio, add-ons, future of the insurance policy, financial stability.

Policy structure, online platform, customer service, the scope of the network.

Who can buy

People with short-term goals, people who invest regularly in stocks.

People who are Married, married with no children, married with children can buy term plans to secure their future.


A term plan with return of premium is a life insurance plan where the premiums paid in the term are repaid to the life assured. The main aspect that highlights it is the return of premium with the maturity benefit. By paying an additional premium for add-ons, they can cover the aspects that aren’t covered in the term plan alone. The money-Back plan offers benefits like survival, death, maturity, and tax benefits. 

Also read 

Why is Money-Back Considered a Superior Investment Option?

What Type of Riders Are Suitable for Money Back Plans?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.         

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