Best Term Insurance Plan With Return Of Premium In India
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You need to know about the best term life insurance with a return of premium so that you can make the right decision in this case.
The phenomenon called life is becoming expensive even as we speak. At the same time, our responsibilities are also increasing. This is where we need all the help we can to manage our finances and one of the best options that we have in this regard is the return of premium term life insurance. The good thing is that these days there is no dearth of financial tools that allow us to accumulate wealth and gain a sense of security in life.
They are the most effective options that you have in this context.
As we have said already, term insurance with a return is one of the best ways that you can go about it. It also helps that these policies offer such crucial benefits as a premium waiver, disability compensation, accidental death benefit, and protection from critical illnesses, to name a few. This is why if you invest your money in such a policy you can be sure that you would have a semblance of financial security in your life.
Few Things to Know about Term Insurance Plan with Return Of Premium Plans
These plans are pretty much the same as the life insurance policies that people in India happen to be acquainted with. This is in the sense that it offers you the twin benefits that you expect from those policies. If you die within the policy coverage period your nominated beneficiaries receive the sum assured by the policy.
If you are alive at the end of the policy coverage period, the best term life insurance with a return of premium would pay you back the money that you paid as premium all these years. It is the maturity benefit available at the end of the policy that separates it from the pure term plans that offer only death benefits. However, you need to remember that in the case of the term plans with a return of premium you may have to pay an extra premium. However, you do enjoy some freedom of choice in these cases.
Top-3 Term Insurance Plans With Return Of Premium
1. Max Life Premium Return Protection Plan
The first name that needs to be taken in this case is that of the Max Life Premium Return Protection Plan. As the name of the policy would indicate it comes to you from Max Life Insurance. This happens to be a non-participating limited-pay plan. This is a single life premium return policy that offers you – the policyholder – comprehensive life insurance coverage. In this policy, you would get an accidental death benefit along with tax benefits and maturity benefits.
It is because of reasons such as these that this is known as the best term insurance with return of premium in India. There are three options for you over here as far as the term period of the policy is concerned – 20, 25, and 30 years. On the other hand, you would not have to pay the premium for over 11 years in this policy. You would be provided with text messages that would apprise you of all the latest developments in the policy. All you would have to do for that is to inform Max Life Insurance via an SMS (short message service) that you want the text message service to be activated.
2. Tata AIA Life Insurance iRaksha TROP
This is regarded by many as the best term plan with a return of premium. In this policy, you would get a return of premiums along with coverage that you normally get from such policies. Here you also have the option of paying your premium at a pace that you are comfortable with. There are three options that you can choose from in this context – regular pay, single pay, and limited pay. You can pay the premium once a year or two times in the same period with a 30-day grace period thrown in.
If you have paid the premium for a couple of years on the trot you would get surrender value on the same as well. No wonder, this is such a highly regarded term plan with a return. You can buy the policy online as well. Plus you get a free-look period of 30 days in the policy. You can utilize this time to study the plan and return it in case you are dissatisfied with its terms and conditions.
3. PNB (Punjab National Bank) MetLife Mera Jeevan Suraksha TROP
When you think of the best term plan with a return of premium this is one name that comes to mind for sure, and there are several reasons for such a statement. This is a non-linked, non-participating, and pure risk premium life insurance plan. As you would have guessed by now, the policy comes to you from PNB MetLife. It offers you a couple of options when it comes to payout – a lump sum payment or continued income. You can be sure that both would be equally beneficial when it comes to protecting your family financially in case you die prematurely.
So many people consider this policy to be the best term life insurance with a return of premium. If you live following the conclusion of the policy you can also opt to get back the money that you have paid the company as a premium. If you are a female policyholder you would get special rates in the policy.
Term Insurance Plan With Return Of Premium
A term insurance plan with a return of premium (TROP) is a type of life insurance policy that provides life coverage for a specified term and returns the premiums paid if the policyholder survives the term.
When a policyholder purchases a TROP policy, they pay premiums for a specified term, usually 10, 15, 20, or 30 years. If the policyholder dies during the term, the policy pays out the death benefit to the designated beneficiaries. If the policyholder survives the term, they receive the premiums paid as a lump sum tax-free payout.
Yes, TROP policies are generally more expensive than regular term insurance policies because they provide a return of premium feature. The policyholder pays a premium for life coverage and an additional premium for the return of premium feature.
No, premiums paid under a TROP policy are not tax-deductible. However, the lump sum payout of premiums received at the end of the term is tax-free.
A TROP policy is not a good investment option because the premiums paid are generally higher than those of a regular term insurance policy, and the return of premium feature is not guaranteed. If the policyholder dies during the term, their beneficiaries receive the death benefit, but if the policyholder survives the term, they only receive the premiums paid. It is best to consider TROP policies as a way to provide life coverage and a return of premiums at the end of the term, rather than an investment option.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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