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Is There Any Good Term Life Insurance With Return Of Premium?

Published On Oct 08, 2021 12:00 PM By InsuranceDekho

Term insurance is the most basic of all the life insurance products available in the market. It is a pure life insurance policy that focuses on providing the sum assured to your dependents in the face of your death. All you have to do is make certain that the premium is paid on time. Furthermore, as compared to regular insurance, term plans offer more coverage for a lower rate. Even still, when the time comes to make the ultimate decision, we usually hesitate to purchase it. This is due to the fact that it has no maturation benefits. The concept that runs through our heads is that if I survive the policy tenure, the full sum of money would be wasted.

This is where a term plan with returns of premiums comes. TROP, or term insurance with a return of premium paid, is a common term insurance option. It functions similarly to a term insurance policy, but with the added benefit of a maturity benefit at the conclusion of the policy term. We'll go through several solid term plans with premium returns in this article.

Are There Any Good Term Life Insurance Plans With Return Of Premium?

Here are some of the good term life insurance plans with return of premium option.

1. ABSLI Premium Back Term Plan

The Birla Sun Life Premium Back Term Plan is a type of term plan in which the nominee receives the sum assured along with the premiums paid to date upon the death of the life insured, and the policyholder receives the entire premium paid upon maturity, depending on the option selected. For added protection, there are three riders available. On death or maturity, a maturity bonus of 100 per cent or 125 per cent of premiums paid would be refunded. Surrender alternatives are available under this plan, however they vary depending on the policy term and the year it was surrendered.

Must Read: Term Insurance Plan Calculator: Calculate Returns Online Before Investing

2. Kotak Premium Return Term Plan

Under Kotak Premium Return Term Plan, the Death Benefit is paid to the nominee if the life insured dies during the policy term, and the premiums are returned to him at maturity if he lives to the end of the term. If the policyholder fails to pay the premium, the policy will lapse, and all benefits will end when the grace period expires. However, it can be reactivated within two years of the first unpaid premium. If all three years' premiums are paid on time, the policy gains a Paid Up value, and the death and maturity benefits are still available, although at a lower amount.

3. ICICI Prudential Life Guard Term Plan

ICICI Prudential's Lifeguard Level Term Plan with Return of Premium Plan is a term plan variation. This is a term plan with a twist: if the life insured dies during the policy term, the nominee will get the Sum Assured, but if he does not, the premiums will be returned to him at maturity. Once the first three years of premiums have been paid, a guaranteed surrender value is available.


A term plan is a pure life insurance policy that every earning member of a family should obtain. When deciding between a conventional term plan and a TROP, the psychological comfort factor is more important than the advantages. Only get a TROP if you are afraid to buy a conventional term plan and you believe that if you survive the policy term, all of your money would be wasted.

Also Read: Which Cheap Term Life Insurance Gives Best Returns?

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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