When it comes to securing your family’s future, term insurance is one of the most essential tools. But many people hesitate to buy pure term plans because they offer no maturity benefits. This is where the Term Plan with Return of Premium (TROP) comes in—a plan that gives you life cover and also returns your premiums if you survive the policy term.
In this article, we’ll explore what a TROP is, its key features, benefits, and how it compares with regular term insurance plans.
What is a Term Plan with Return of Premium?
A Term Plan with Return of Premium (TROP) is a type of term insurance policy that provides a death benefit to your nominee in case of your unfortunate demise during the policy term. However, if you survive till the end of the term, the insurer returns all the premiums (excluding taxes and rider charges) that you have paid over the years.
This combination of protection and savings makes it an appealing choice for those who want to receive something in return if they outlive the policy.
Key Features of TROP
✅ Life Cover
Just like a regular term plan, TROP provides high life coverage at affordable premiums. Your family will receive the sum assured in case of your death during the policy period.
✅ Premium Refund
If you survive the policy term, all the premiums paid are returned. This amount is tax-free under Section 10(10D) of the Income Tax Act.
✅ Fixed Policy Term
TROP plans come with a fixed policy tenure—ranging from 10 to 40 years, depending on your age and insurer’s policy.
✅ Riders for Enhanced Protection
You can opt for add-on riders like critical illness cover, accidental death benefit, waiver of premium, etc., for broader protection.
Benefits of Term Plan with Return of Premium
1. Maturity Benefit
Unlike traditional term insurance, TROP returns your total premiums, acting as a savings-cum-insurance plan. This is ideal for people who don’t like the idea of “losing” money if they outlive the policy.
2. Tax Benefits
You can claim tax deductions under Section 80C for premiums paid and enjoy tax-free maturity/death benefits under Section 10(10D).
3. Financial Security
In case of untimely death, your family gets the lump sum amount to take care of financial needs such as education, loans, or daily expenses.
4. Peace of Mind
TROP gives emotional and financial reassurance—you either protect your family or get your money back.
Who Should Buy TROP?
- People looking for low-risk insurance options with some return
- Individuals who want a disciplined saving habit
- First-time insurance buyers who want benefits at maturity
- Those with dependents and moderate income who seek long-term protection plus a return
TROP vs Regular Term Plan
| Feature | TROP | Regular Term Plan |
|---|---|---|
| Death Benefit | Yes | Yes |
| Maturity Benefit | Yes (Return of Premium) | No |
| Premium Cost | Higher | Lower |
| Suitable For | Conservative investors | Pure risk coverage seekers |
Best Term Plans with Return of Premium in India (2025)
- LIC Jeevan Kiran
- HDFC Life Click 2 Protect Return of Premium
- Max Life Smart Secure Plus
- Bajaj Allianz Life Smart Protect Goal
- ICICI Pru iProtect Return of Premium
Always compare plans based on coverage, premium, benefits, and claim settlement ratio before choosing.
Final Thoughts
A Term Plan with Return of Premium offers the dual benefit of life protection and premium refund, making it a smart choice for those who want security plus value. While it’s slightly more expensive than regular term insurance, the peace of mind and maturity benefit it offers is worth considering.
