best term insurance plans with return of premium comparison
- Premium Rates: TROP plans typically have significantly higher premiums than regular term insurance plans because of the return of premium benefit. Compare the premiums for the same sum assured and policy term across different insurers.
- Return of Premium Amount: Most plans return 100% of the base premiums paid. Check if any offer a percentage higher than 100%.
- Policy Term: Check the range of policy terms offered by different plans. Ensure it aligns with your coverage needs.
- Entry and Maturity Age: Consider the eligible entry age and the maximum maturity age offered by the plan.
- Sum Assured Options: Ensure the plan offers a sufficient range of sum assured options to meet your financial goals.
- Riders: Most TROP plans allow you to add riders like critical illness, accidental death, and waiver of premium. Compare the availability and cost of these riders.
- Claim Settlement Ratio of the Insurer: A higher claim settlement ratio indicates a better track record of settling claims.
- Tax Benefits: Premiums paid for term insurance (including TROP) are eligible for tax deductions under Section 80C of the Income Tax Act, and the maturity benefit is usually tax-free under Section 10(10D), subject to prevailing tax laws.
- Flexibility in Premium Payment: Check the available premium payment modes (annual, semi-annual, quarterly, monthly) and any options for limited premium payment terms.
- Online Discounts: Some insurers offer discounts for purchasing TROP plans online.
Potential TROP Plans to Consider (as of May 2025):
Based on general market understanding and features, here are some insurers offering TROP plans you might want to compare:
| Insurance Company | Popular TROP Plans (Illustrative) | Key Features |
| HDFC Life Insurance | Click 2 Protect Super (ROP Option) | Offers a return of premium option along with various coverage choices and riders. May have options for increasing cover. |
| ICICI Prudential Life Insurance | iProtect Return of Premium | Offers a return of premium with potential life stage cover increases. May have online discounts and flexible premium payment methods. |
| Max Life Insurance | Smart Secure Plus (potential ROP option) | Offers different death benefit options and riders. Check if the return of premium is a standard feature or an add-on. |
| Tata AIA Life Insurance | iRaksha TROP, Sampoorna Raksha Promise (with ROP option) | May offer coverage up to 100 years with a return of premium option. Check for flexibility in premium payment and potential for increasing cover at life stages. |
| Bajaj Allianz Life Insurance | eTouch Online Term Plan (potential ROP) | Offers various payout options and may have a return of premium feature. Check for premium holiday options. |
| PNB MetLife | Mera Term Plan Plus (potential ROP) | May offer spouse cover and different plan options with a return of premium feature. |
| Canara HSBC Life Insurance | iSelect Smart360 Term Plan (potential ROP) | May include child care and life stage benefits with a return of premium option. |
| ABSLI (Aditya Birla Sun Life) | ABSLI DigiShield Plan (potential ROP) | Offers flexible premium payment terms and rider options; check if the return of premium is available. |
Comparison Considerations:
- Premium Differences: Be prepared for significantly higher premiums compared to regular term plans. Evaluate if the guaranteed return justifies the increased cost.
- Opportunity Cost: Consider whether investing the difference in premium between a regular term plan and a TROP plan elsewhere could yield higher returns over the long term.
- Long-Term Financial Goals: Align your choice with your overall financial plan. If you prioritize a guaranteed return and want your premiums back, TROP might be suitable. If maximizing coverage at a lower cost is the priority, a regular term plan might be better.
How to Choose:
- Assess Your Needs: Determine your life cover requirement and the policy term you need.
- Compare TROP Plans Online: Use online insurance comparison portals to get quotes from multiple insurers for TROP plans with similar coverage.
- Evaluate Premiums and Returns: Compare the premium amounts and the guaranteed return on maturity.
- Check Rider Options: See which riders are available and if they suit your needs.
- Consider the Insurer’s Credibility: Look at the claim settlement ratio and customer reviews.
- Read Policy Documents Carefully: Understand the terms and conditions, including exclusions and the specifics of the return of premium benefit.
- Consult a Financial Advisor: A financial advisor can help you assess your situation and recommend the most suitable plan based on your financial goals and risk appetite.
In conclusion, when comparing the best term insurance plans with a return of premium in India, focus on the premium rates, the guaranteed return, policy features, rider options, and the insurer’s reputation. Carefully weigh the benefits of getting your premiums back against the higher cost compared to a regular term plan.
