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Term insurance is a form of life insurance policy that offers a pure risk cover to the policyholder’s family in the event of the policyholder’s untimely demise during the policy term. The sum assured or the death benefit of term insurance can be extensive enough to act as a strong financial support system for the bereaved family members while the premiums of term insurance policies are quite low and affordable. One can avail of a very large sum assured by paying nominal premiums unlike other life insurance policies that can account for costly premiums.
A pure or regular term life insurance policy does not have any maturity benefits, which means, if the policyholder outlives the policy term, no benefits will be offered to them or their family members. However, a term insurance with a return of premium policy can be a good way to fund any loans and debts a policyholder may owe so that the burden of any unpaid debts does not fall on the late policyholder’s family.
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A term plan with a return of premium works the same way as a term insurance plan, offering a risk cover to the policyholder and their family. However, the main distinction between a term insurance plan and a term plan with a return of premium is the maturity benefit offered by the latter.
Under a term plan with a return of premium (TROP), you will be eligible for a return of the premiums at the end of the policy term, if you survive that period. Like a pure term plan, a TROP also offers death benefits to the policyholder’s family in the event of death. Hence, a term plan with a return of premiums offers dual benefits under a single insurance plan.
While pure risk term insurance plans are meant for those seeking to protect their loved ones’ financial future, term insurance plans with return of premium also serve the same purpose but with the added benefit of receiving the sum of all the paid premiums on maturity, subject to the policyholder surviving the policy term.
However, it is important to know that the premiums you pay towards a TROP policy will be slightly higher than that of a pure term insurance plan. This is why it is advisable to choose a TROP that enables you to pay reasonably priced premiums and enjoy the policy's coverage is advisable. And like a term plan, the TROP should also offer sufficient coverage to your family so that their financial future can be well-protected.
Term insurance with return of premiums offers additional benefits over a pure risk term plan cover and the flexibility of paying the insurance premiums. Here, the policyholder can choose to pay the premiums as per a premium payment frequency of their choice. Tata AIA Sampoorna Raksha Supreme plan allows you to pay your renewal premium in Annual, Quarterly, Half-yearly, Monthly and Single payment option.
In a pure term plan, If the policyholder passes away during the policy term, the family will receive the sum assured as a death benefit.
However, if the policyholder survives the policy term, they are entitled to a refund of the premium amount paid. For the maturity benefit in the term plan with returns, the policyholder can choose to receive the return of premiums payout as a lump sum or as an income option or a combination of both payout options, as they prefer.
Basic Sum Assured
₹ 1,00,000
Choice of Plan Options
Life, Life Plus, Life
Income, Credit Protect
Life Cover up to
100 years^
Rider Options
Non-Linked Comprehensive
Protection Rider & Non-Linked
Comprehensive, Health Rider
Premium Paying Options
Single Pay, Regular Pay, Limited Pay, Anually, Half-yearly, Quarterly, Monthly.
Claim Settlement Ratio2
98.53% in FY 21-22
When you buy a term plan with a return of premium, it offers comprehensive life cover protection. With Tata AIA Sampoorna Raksha Supreme, you can enjoy a life cover of up to 100 years of age with a whole life cover as per the plan feature and ensure your family’s safety and security!
The term insurance with return of premiums can be revived before the date of maturity if the revival takes place within 5 years from the last unpaid premium. For that, the overdue premium payments need to be made along with an interest.
A term plan with returns offers death benefits as well as maturity benefits. While the former is paid out to the nominees on the policyholder’s demise, the survival benefit is the return of the premiums.
Many Insurance companies offer flexible premium payment terms when you buy our term plan with a return of premium. You can pay your premiums monthly, quarterly, half-yearly, annually, or as a single premium payment.
Insurance companies offer flexible payout options for Term Insurance plans. With Tata AIA Sampoorna Raksha Supreme, when you choose the Life Plus or Life Income option, you can choose to receive the payout in the form of a lump sum or as a monthly income of up to 60 months or a combination of both options.
With Tata AIA Sampoorna Raksha Supreme, you can receive an amount equivalent to 50% of the base sum assured once a terminal illness has been diagnosed and the claim for the payout of the amount has been accepted.
A term plan with return of premium can also be enhanced with optional riders** in the term plan that can help you cover emergency situations, especially emergency medical expenses, without affecting your family’s financial stability.
A term plan with a return of premium offers a life insurance cover for your family, helping you keep them safe from any future uncertain situations in your absence. In addition, the life cover ensures that your family will have access to a financial support system in case of any such untoward misfortune.
Compared to a pure term plan, term plans with a return of premium enable you to enjoy a maturity benefit, where you receive a refund on your premiums. The Life Plus option of Tata AIA Sampoorna Raksha Supreme offers an amount equal to 105% of the total premiums* paid towards the plan.
Being a term plan variant, a TROP also offers a death benefit to your nominees in case of your untimely demise during the policy term. Here, the nominees will be entitled to the death benefit as sum assured.
Our term insurance plans with a return of premium comes with tax benefits as per the applicable tax~ laws.
Take a look at our popular term insurance plans:
Getting a term plan with a return of premium not only helps you secure your family’s future but also ensures that you have a financial plan that will help you fulfil certain goals in the future. By comparing and buying a policy online, you can select the best term plan with a return of premium. Below are some of the reasons why having a term plan with a return of premium can be suitable:
Out of the different types of term insurance plans, in a term plan with a return of premiums, the lumpsum premium amount is returned on the maturity of the policy, if the policyholder outlives the policy term. This ensures that the premiums paid over the policy tenure are not lost. A term insurance plan return of premium can be a good money-back plan where all the premiums paid over the years are refunded after the policy matures.
With a return of premium term life insurance, the benefits are guaranteed. You can be eligible for a refund that is equal to 105% of the total premiums* paid at the end of the policy term. Since there is no savings or investment component to a term plan with a return of premiums other than a life cover and a maturity benefit, the amount returned on maturity is guaranteed.
The best term plan with return of premium allows you the flexibility to pay the premiums on a monthly, quarterly, half-yearly or annual basis. This ensures that you can chalk out your financial plans and also pay your policy premiums right on time without disrupting your other financial commitments and payment or overburdening yourself with too many payments at any given point in time.
Term plans with return of premiums come with an option wherein the plan can be converted into a paid-up policy. Hence, in case you default on the premium payments due to some reason till the end of the grace period, the policy turns into a paid-up policy by default to prevent it from lapsing.
There are certain tax benefits that come along when you buy a term insurance with a return of premium*. Under Section 80C of the Income Tax Act, you can claim a deduction of up to ₹1.5 Lakh for the premiums paid towards the policy while Section 10(10D) allows for a tax exemption on the death and maturity benefits offered by the term plan with return of premiums.
You can choose to enhance the benefits of your term plan with a return of premium with optional riders**. You can add a critical illness rider or a waiver of premium rider to your plan so that, in times of emergency, you do not have to compromise on your savings or premium payments and can easily avail of the additional rider coverage.
A Non-Linked Non-Participating Individual Life Insurance Plan (UIN:110N160V03)
TATA AIA Life Insurance
|
|
***T&C apply
If you compare and choose your term plan carefully, you will be able to get the best term plan with a return of premium. Here are some of the reasons you should choose Tata AIA Life Insurance for your insurance needs –
Families protected so far
Claim Settlement Ratio2 in FY 21 - 22
Express Claim Settlement1
Presence across major cities in India
1T&C apply.
Term insurance policies are important because they provide an assured life cover protection to your family. In the event of an unfortunate eventuality, the sum assured of the term insurance policy will offer financial support to your loved ones to secure their future.
Term insurance policies offer a pure risk cover throughout the policy term. This risk cover helps your family avail of a sum assured in the event of your (policyholder’s) demise during the policy term. However, if you survive the term, a pure term plan will not offer any survival benefits.
Between term insurance and term insurance plan with return of premium, each one will be suitable for a policy buyer as per their needs. If someone only wants a pure risk cover then they can opt for a term insurance plan. But if someone wants to get the premium amount paid back on maturity, then they should buy a term plan with return of premium.
The best term plan with return of premium would be the one that suits your insurance needs and provides adequate coverage to your family in case of unforeseen misfortune. To select the best term plan with return of premium, it is important to calculate the premiums and compare the plans before making a final choice.
A term insurance return of premiums is designed to offer the return of the total premiums paid only on maturity and not during the policy term. Moreover, if the policyholder passes on, then the bereaved family is entitled to the death benefits, which is the sum assured and not the return of the premiums. It is advisable to learn more about term insurance with return of premium plan before purchasing it.
Under a return of premium term insurance plan, the death benefit is the total sum assured of the policy that will be paid out to the nominee/nominees if the policyholder passes away during the policy term.
Tata AIA’s term plan with return of premium has a grace period of 30 days for annual, half-yearly and quarterly frequencies from the due date of the last paid premium while the grace period for monthly frequency is 15 days from the due date of the last paid premium.
Is term insurance with a return of premium worth buying?
If you need the benefit of life insurance coverage to protect your loved ones along with a maturity benefit on your survival at the end of the policy term, term insurance with a return of premium is worth purchasing. You can always compare different policies and plan options before choosing the one as per your needs.
How can I select the best term insurance with a return of premium?
To choose the best term insurance with a return of premium, first, ascertain your insurance needs. Understand how much life insurance coverage your family will need for the future in your absence. Also, consider your current income so that you are able to pay all the premiums on time to keep the policy active.
Once you know what you need, you can compare the features and benefits of two or more similar policies or options to find the term plan that suits your life insurance needs well.
Which life insurance companies offer term insurance plans with a return of premium?
Tata AIA Life Insurance offers term insurance plans with a return of premium, where you can choose the policy term, the premium paying term, the sum assured, and riders of your choice. Before you purchase your policy, you can compare different plans to find one that matches your needs.
Which is the best term plan with a return of premium?
The best term plan with a return of premium is the one that offers you adequate coverage and enables you to pay affordable premiums towards the policy. When choosing a term plan with the premium return, compare two or more plans or plan options to select your choice of sum assured, premium paying term, and policy term.
Can you get your money back from a term insurance plan on maturity?
If you buy a term insurance plan with a return of premium, you can receive a total of all the premiums paid at the end of the policy term on maturity if you survive the policy term.
The same is not possible with a pure term plan that only offers a life cover with death benefits and no maturity benefits.
Can I have riders with a term plan with a return of premium?
Yes, you can add riders** with your term plan with a return of premium, depending on the rider options available under the policy.
You can choose to have term life insurance cover for as long as you need to. While most term plans offer coverage for a limited number of years, Tata AIA Life Insurance term plans offer a whole life cover. Whole life term insurance coverage of up to 100 years of age^ ensures that your family can be protected against life’s uncertainties for the maximum number of years.
A return of premium term coverage offers a life cover and also a 105% return of the total premiums* paid towards the policy on maturity. This coverage offers the dual advantage of death and maturity benefits.
Yes, Tata AIA Life Insurance offers a term insurance plan with return of premium. You can take a look at the policy here.
Yes, there are rider** options available with term plans with a return of premium policy and you can add the ones you need to your policy for an additional premium. Tata AIA Life Insurance offers the Tata AIA Life Insurance Non-Linked Comprehensive Protection Rider and the Tata AIA Life Insurance Non-Linked Comprehensive Health Rider with its term plan with a return of premium.
Should I buy a regular term insurance plan or a term return of premium plan?
Choosing between a term plan and a term plan with a return of premium will depend on your needs. A pure term plan is for those who only want extensive life cover protection from their policy with a death benefit.
However, if you want maturity benefits from your term plan, where the premiums paid on your life insurance will be returned to you on maturity, then a term plan with the premium return is a good choice.
You can file a claim with us through any of the following channels:
Call our helpline number - 1860-266-9966 (local charges apply)
Email us at: customercare@tataaia.com
Visit us at any of our Tata AIA Life Insurance Company branch offices
Write to us at:
The Claims Department,
Tata AIA Life Insurance Company Limited
B- Wing, 9th Floor,
I-Think Techno Campus,
Behind TCS, Pokhran Road No.2,
Close to Eastern Express Highway,
Thane (West) 400 607.
IRDA Regn. No. 110
Please click here to know the list of documents needed for the claim intimation and settlement process.
You, as a nominee, can file a death claim for a term plan with return of premium if and when the policyholder passes away during the policy term. You will need to present the appropriate documents and submit them to initiate the claim process.
If the nominee wants to file a claim from outside of India, they can upload copies of their documents online or send them to us by email. For the offline procedure, the nominee will have to mail the documents to their representative in India who can then visit any of our office branches to file the claim.
Yes, you can file the claim on your term insurance with return of premium at the same branch where the policy was purchased or you can visit any of the Tata AIA Life Insurance office branches to file a claim.
What is The Eligibility Criteria for a Term Plan with Return of Premium?
The eligibility criteria for availing of a term plan with return of premium can vary according to the plan you select. However, the minimum eligible age for getting a term plan with return of premium is 18 years while the maximum age for the same can be capped at 65 years.
How Does Smoking or Drinking Alcohol Habit Affect The Term Plan With Return Of Premium?
Yes, like any other life insurance policy, your smoking habits will affect your term plan premiums, be it a pure term plan or a return on premium term insurance. This is because smokers incur a higher risk in their lives as compared to non-smokers.
Can I safely buy a term plan with a return of premium online?
Yes, it is safe to purchase a term plan with a return of premium* online. You should buy it from your insurance provider’s official website. This not only allows you to compare different policies but also safeguards your personal information. At Tata AIA Life Insurance, we ensure that your personal and financial information is never compromised.
Term insurance plans with return of premiums can provide an attractive life insurance cover at very reasonable premium amounts if chosen wisely. And apart from the life cover, these plans can be useful if you want assured returns on your policy without any additional savings or risky investment components involved. Hence, calculate your premium payments, compare plans and choose a suitable term plan with return of premium policy with us today!
Our experts are happy to help you!