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Protect your family against uncertainty with Tata AIA's TROP plans!...
Term insurance plans are known to be flexible, affordable, and suited for nearly everyone. But since everyone's insurance needs are different, Tata AIA brings to you term plans with a return of premium that offer maturity and death benefits. Enjoy dual benefits under a term single plan!
Table of Content
A term plan with a return of premium (TROP) is a variant of term insurance. These plans offer a maturity benefit where you will be paid back all the premiums paid (minus GST) towards the term plan upon surviving the policy term.
Premiums for these plans will be slightly higher than basic term plans. Like pure-term plans, they also offer death benefits to your family in the event of your demise. In simple terms, TROPs are term plans that offer dual benefits under a single term insurance plan.
Also Read: What is Term Insurance?
Term plans with return of premiums function similarly to pure term plans. The main distinction between a term plan and a term plan with a return of premium is the maturity benefit offered by TROPs.
Hence, term plans with a return of premiums will have:
Paid to the policyholder's family upon their death during the policy's term.
Paid to the policyholder when they survive the term plan's tenure.
Premiums for TROPs will stay the same throughout the policy's duration but will be higher than pure term plan premiums.
Let us look at an example to see how TROPs work using Tata AIA's term plan with return of premium.
If you are single or unmarried with fewer dependents or dependent parents, you can benefit from buying a term plan with return of premiums. The dual benefit ensures your loved ones are taken care of either way since the pay outs are tax-free4 under applicable tax laws.
As a couple, you will notice that your financial obligations will have begun to increase. You must now account for your spouse, dependent parents/in-laws and any future children.
With a term plan with a return of premium, the death benefit ensures that all your loved ones will be protected in the event of your demise. The maturity benefit can help further boost your financial security.
Once children come into the picture, there are always more responsibilities. Hence, investing in life solutions like term plans with a return of premium can help safeguard your spouse and children against any future financial emergencies. Moreover, the maturity benefit of survival can be used to pay for financial obligations like your child's higher education.
If you are older or planning for retirement, a term plan with a money-back feature can be beneficial. It not only protects your family but also ensures that you have access to additional financial resources during your retirement.
If you are an NRI with dependents, a term plan with a return of premium feature can help secure your loved ones back in India. As an NRI, you can also claim 5tax relief on your maturity proceeds under India's Double Taxation Avoidance Agreement (DTAA), so you are not taxed twice on the same income – in your resident country and India.
A Term plan with a Return of Premium (TROP) offers life covers and, at the maturity date, allows the refunding of premiums with guaranteed returns to the investor, making it increasingly popular for ensuring financial security through guaranteed returns as well. It is one investment that will undoubtedly be recommended; here's why:
Unlike a normal term plan, in which the premiums are non-refundable, TROP ensures that you get back all the premiums, paid if you survive the policy term.
This feature comes with financial security to your family and also acts as a risk-free savings option.
In case you die during the policy term, your nominee will receive the sum assured, thus ensuring that your family is financially stable.
The lump sum amount is utilized in paying loans, children's education, daily usage, and many other future needs.
This is one more significant benefit offered by TROP, wherein, if you live through the end of the term, all those premiums you had paid for decades are returned.
It is like a zero loss investment for one who seeks pure insurance with investment returns.
You can also claim tax deductions up to ₹1.5 lakh per annum under Section 80C of the Income Tax Act.
The maturity payout comes tax-free under Section 10(10D), subject to conditions.
You can add riders such as critical illness cover, accidental death benefit, and waiver of premium to your coverage.
These add-ons offer further security against unexpected events.
Difference Between Pure Term Insurance and Term Plans with Return of Premium
Parameters |
Pure Term Insurance Plan |
Term Plan with Return of Premium |
Definition |
The simplest form of life insurance that offers pure risk coverage. |
Variant of a term insurance that offers a return on total premiums paid on maturity. |
Benefits |
Death benefit only |
Death benefit and maturity benefit |
Premiums |
Affordable |
Higher than pure term plans |
Ideal For |
Those only looking for risk coverage and want an affordable life solution. |
Those looking for a life solution that offers maturity benefits and can afford to pay higher premiums. |
A term plan with return of premiums offers a guaranteed lump sum pay out of all premiums paid on the policy maturity when you outlive your term policy. You can be eligible for a refund that is equal to 100% of the total premiums paid at the end of the policy term.
This ensures you and your family can benefit from the term insurance plan and the premiums paid over the policy tenure are not lost. T&C apply..
Just like regular term plans, term plans with money-back features offer tax4 benefits to policyholders and their nominees.
Under Section 80C of the Income Tax Act, you can claim a deduction of up to ₹1.5 lakhs 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 TROP plan.
Many term plans with a return of premium also offer whole life covers that ensure your family will have access to a financial support system in case of any such untoward misfortune.
For example, at Tata AIA, we offer coverage for up to 100 years, along with a built-in ROP feature. This ensures your TROP policy offers sustained risk coverage if you are unsure of how long you will need term insurance coverage.
The best term insurance with return of premium often comes with several add-on riders** you can choose from. These can help enhance the base coverage of your TROP plan.
For example, 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 claim the additional rider coverage.
Our term plans with money-back features offer death and maturity benefits, ensuring both you and your family are covered under our plans. We also offer life stage benefits under our TROP plans, where you can increase your sum assured with each life stage, ensuring your loved ones are provided with enough financial assistance.
With Tata AIA's term plan with return of premium, you can get comprehensive life cover protection up to 100 years of age$. This ensures that you can claim coverage for as long as you require under our term plans while securing your family!.
With Tata AIA, you can customise how and when you want to pay your premiums! We offer flexible premium payment frequencies like monthly/quarterly/half-yearly/annual and payment terms like single/limited/regular when you buy our TROP plans.
This ensures that you can chalk out your financial plans and pay your policy premiums right on time without disrupting your other financial commitments.
Our term plans with return of premiums come with a feature where your TROP plan automatically converts into a paid-up policy. This can be beneficial in case you must default on your premium payment due to external circumstances or financial issues. Simply put, your TROP policy will turn into a paid-up policy by default to prevent it from lapsing.
We offer several optional riders** under our TROP plans. You can enhance your base term plan with return of premium to help you cover emergencies, like emergency medical expenses, without affecting your family's financial stability.
Remember that add-ons will increase your overall policy premiums. Hence, we advise you only to choose the riders** you need. To get accurate TROP policy quotes, use our term plan with return of premium calculator given below!
Before purchasing, chart out the coverage amount that will keep your family comfortable in case of your sudden and untimely demise.
Check if the premiums you will pay are well within your budget so that you do not compromise on other expenses or skip any payments.
It is crucial that the claim settlement ratio of your insurance provider is high. It shows that they can undertake successful and timely claim settlements.
The term plan you select should allow for annual, half-yearly, quarterly, or monthly payments so that you find it easier to make the premium payments on time.
If you are aware of these simple tips before purchasing a term plan with a return of premiums, you will be able to find a policy that fulfils your needs properly.
Families protected so far1
Individual Death Claim Settlement Ratio2 in FY 23 - 24
Express Claim Settlement3
Presence across major cities in India
3T&C apply
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Tata AIA Sampoorna Raksha Promise - Non-Linked, Non-Participating, pure risk, Individual Life Insurance Product (UIN:110N176V05)
&Illustrated Premium is the monthly premium excluding taxes for 20 yr. old female, Standard Life, Non-Smoker for 1 Cr. Sum Assured with Policy Term of 40 yrs. (Regular Pay) under Life Promise Plus Option. Please refer Benefit Illustration for more details. Premium is subject to applicable taxes, cesses & levies which will be entirely borne/ paid by the Policyholder, in addition to the payment of such Premium. Tata AIA Life shall have the right to claim, deduct, adjust, recover the amount of any applicable tax or imposition, levied by any statutory or administrative body, from the benefits payable under the Policy. Kindly refer the sales illustration for the exact premium.
^This includes first year digital discount of 10% for Limited Pay/Regular Pay and 5% salaried discount. For Single Pay, 1% discount will be available for online purchase and salaried discount each.
*Under Life Promise Plus Option, an amount equal to the 100% of the Total Premiums Paid (excluding loading for modal premiums) shall be payable at the end of the Policy Term, provided the life assured survives till maturity and the policy is not terminated earlier.
~Not applicable under PoS, please refer sales brochure for more information
+Tax benefits of up to ₹46,800 u/s 80C is calculated at highest tax slab rate of 31.20% (including cess excluding surcharge) on life insurance premium paid of ₹1,50,000. Tax benefits under the policy are subject to conditions laid under Section 80C, 80D,10(10D), 115BAC and other applicable provisions of the Income Tax Act,1961. Good and Service tax and Cess, if any will be charged extra as per prevailing rates. The Tax Free income is subject to conditions specified under section 10(10D) and other applicable provisions of the Income Tax Act,1961. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.
$Applicable for specific plan options. Please refer brochure for additional details.
**Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums, and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch.
CritiCare Plus (CPB), Accidental Death (AD), Accidental Total & Permanent Disability (ATPD) are benefit options available under Tata AIA Vitality Protect (A Non-linked, Non-participating, Individual Health Rider). Hospi Care (HCB) is a benefit option available under Tata AIA Vitality Health (A Non-linked, Non-participating, Individual Health Rider)
The assessment under the wellness program (Tata AIA Vitality) shall not be considered as a medical advice or a substitute to a consultation/treatment by a professional medical practitioner.
Vitality is a trademark licensed to Tata AIA Life by Amplify Health Assets PTE. Limited, a joint venture between Vitality Group International, INC. and AIA Company Limited.
177,26,727 families protected till 31st March 2023.
2Individual Death Claim Settlement Ratio is 99.13% for FY 2023 - 24 as per the latest annual audited figures.
3Applicable to only non-early claims with more than 3 years of policy duration, non-investigation cases, up to Sum Assured of Rs. 50 lakhs. Applicable for branch walk in. Time limit to submit claim to Tata AIA Life Insurance is 2 pm on working days. Subject to submission of complete documents. Not applicable for ULIP policies and open title claims.
4Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfillment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implication mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.
Insurance cover is available under the product.
The products are underwritten by Tata AIA Life Insurance Company Ltd.
The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.
For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
L&C/Advt/2025/Mar/1339
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