Freepressjournal : Latest Indian news,Live updates
  • Home
  • Opinion
  • India
    • Lok Sabha Elections 2019
    • Lok Sabha Elections 2019
    • Elections 2018
  • Cities
    • Mumbai
    • Pune
    • Delhi
    • Indore
    • Bhopal
    • Ujjain
  • World
  • Business
    • Budget 2019
    • Sponsored Content
    • Events Corner
  • Entertainment
    • Hollywood
    • Bollywood
    • Television
    • Regional Film News
    • Movie Reviews
    • Movie Trailers
  • Sports
    • Cricket
    • Football
  • Features
    • Infographics
    • Interviews
    • Personal Finance
    • Education
    • Lifestyle
    • Book Reviews
    • Peace of Mind
    • Weekend
    • Whats’s Up
    • Sex and Relationships
    • Food
    • Travel
  • FPJ Initiatives
    • FPJ Roundtable
    • India’s Coastline-Engine and Wheel of Economic Growth
    • IAA-The Gutenberg Galaxy Book Launch
    • Madhya Pradesh Glorious Agri-Revolution
    • India and its neighbours
    • India and the World
    • FPJ FORUM
    • Public Notice
    • The FPJ Management Scholarship
      • FPJ Management Scholarship Awards
  • Epaper

Freepressjournal : Latest Indian news,Live updates

  • Home
  • Opinion
  • India
    • Lok Sabha Elections 2019
    • Lok Sabha Elections 2019
    • Elections 2018
  • Cities
    • Mumbai
    • Pune
    • Delhi
    • Indore
    • Bhopal
    • Ujjain
  • World
  • Business
    • Budget 2019
    • Sponsored Content
    • Events Corner
  • Entertainment
    • Hollywood
    • Bollywood
    • Television
    • Regional Film News
    • Movie Reviews
    • Movie Trailers
  • Sports
    • Cricket
    • Football
  • Features
    • Infographics
    • Interviews
    • Personal Finance
    • Education
    • Lifestyle
    • Book Reviews
    • Peace of Mind
    • Weekend
    • Whats’s Up
    • Sex and Relationships
    • Food
    • Travel
  • FPJ Initiatives
    • FPJ Roundtable
    • India’s Coastline-Engine and Wheel of Economic Growth
    • IAA-The Gutenberg Galaxy Book Launch
    • Madhya Pradesh Glorious Agri-Revolution
    • India and its neighbours
    • India and the World
    • FPJ FORUM
    • Public Notice
    • The FPJ Management Scholarship
      • FPJ Management Scholarship Awards
  • Epaper

Your A-Z Guide to Term Plan with Return of Premium

by Brijesh Desai January 3, 2019 12:47 pm
written by Brijesh Desai January 3, 2019 12:47 pm
Your A-Z Guide to Term Plan with Return of Premium
(Image Source -Shutterstock)

The popularity of term plans has increased over the years. One of the primary reasons for this is the introduction of new policies with better benefits. Be it selling policies online or providing 30-40 percent lower premiums, insurance companies have been trying really hard to live up to the expectations of the customers. However, consumers still wanted an insurance plan that offered them return of premiums. To cater this segment of customers, insurers launched a term plan with return of premium benefit.

What is Term Plan with Return of Premium (TROP) Plan?

TROP is a modified version of the regular term plans. It was launched for consumers to avail survival benefits upon the maturity of the policy tenure. TROPs cover all the protection benefits provided in the regular term plans. But the thing that makes these plans more attractive are the add-ons such as – conditional payouts in case of grave illness or accidental death.

How does TROP work?

The working of TROP is slightly different than that of regular term plans. For instance, consider you bought a policy of Rs 20 Lakh cover for 10 years that has a yearly premium of 2000. In case of your sudden demise, your nominee will be paid Rs. 20 Lakh. However, if you survive the term, the insurer will return the entire premium that you paid back, i.e. Rs 20,000 (2000*10).

Technically speaking, a TROP is a non-participating term insurance plan. When compared to regular term plans following features are notable:

  • A term plan only offers death benefits, while the term plan with return of premium provides maturity benefits as well
  • Due to the guaranteed return of premium benefit, the TROPs are slightly expensive

Why You Must Purchase TROP?

There are always customers who expect to get returns from their insurance policy. For them, TROP plan should be the choice. It provides dual benefits – Security of a term plan and assured premium returns. Some other reasons include:

  • TROP plans offer a premium refund at maturity. This benefit makes the plan ideal for investors who are looking for life cover but also want their money back in case of maturity of the policy. One can say that TROP has a large cover of term plans and the savings aspect of traditional plans like the endowment plan.
  • Optional riders that are added for enhancing the protection are also available at very low additional costs in the TROP plans. You can choose a range of optional riders at the time of signing up for the policy or add them later in your policy. It is advisable to go for riders such as – physical disability, personal accident, critical illness and others.
  • The TROP plans offer premium payment options like monthly, quarterly and yearly. For instance, if the policyholder is beginning his career or has responsibilities to take care of, then the single payment option is the best. In this option, the insured has to pay small amounts. On the other hand, if the policyholder can pay higher rates choosing half-yearly or yearly payment is best as the overall outgo is lesser than its other alternatives.
  • TROP plan offers tax benefits under the Section(s) 80C and 10(10D) of the Income Tax Act, 1961. Under Section 80C, a policyholder can claim tax deductions up to Rs. 1.5 Lakh for the amount paid as premiums. Moreover, the maturity benefits available in TROP plan are also subject to tax deductions under Section 10(10D).
  • The plan offers a ‘paid up’ option to the policyholders in case they default on the payments of the premiums. This feature makes TROP ideal for people who do not have a regular source of income but still need a policy.

Tips to Choose the Correct TROP Plan

While purchasing a TROP plan can be a brilliant investment, you must remember these things before buying one;

  • Don’t look only for maturity benefits while selecting a policy. The ones offering best maturity value might not prove out to be cost-effective in the longer run.
  • Always go for higher sum assured, as chances of getting discounts are more. Thus, a better proposition
  • Go for the highest term available, as under these plans the policy term is not extendable later.

Is Term Plan with Return of Premium for You?

Term plan with return of premium is an insurance policy that comes out as a blessing in disguise for people looking for returns on their life insurance policy. When a plan provides you everything that was missing from the traditional term plans, then why wait to purchase it?

Hurry up and buy term plan with return of premium from leading financial institutes like Future Generali, to reap the best benefits this plan can provide.

Disclaimer: This article has been written by Anisha Arora and do not necessarily reflect the views of the Free Press Journal.

return of premiumreturn on investmentTerm Plan
previous post
Arbaaz Khan finally reveals why Salman doesn’t kiss on screen
next post
42nd Jamnalal Bajaj National & International Awards – 2019 for Gandhian ‘Warriors’

You may also like

Markets Update: February 15, 2019 – Today’s action...

February 15, 2019 4:00 pm

Markets Update: February 14, 2019 – Today’s action...

February 14, 2019 4:00 pm

Markets Update: February 13, 2019 – Today’s action...

February 13, 2019 4:00 pm

Markets Update: February 12, 2019 – Today’s action...

February 12, 2019 4:00 pm

Don’t fall in the “Discount” trap! When buying...

February 12, 2019 11:38 am

Markets Update: February 11, 2019 – Today’s action...

February 11, 2019 4:00 pm

Markets Update: February 8, 2019 – Today’s action...

February 8, 2019 4:00 pm

Markets Update: February 7, 2019 – Today’s action...

February 7, 2019 4:00 pm

Markets Update: February 6, 2019 – Today’s action...

February 6, 2019 4:00 pm

Markets Update: February 05, 2019 – Today’s action...

February 5, 2019 4:00 pm

Opinions

  • Cry, my beloved country

    February 16, 2019 9:08 am
  • The grim case against hydropower on the Ganga

    February 16, 2019 9:03 am
  • It is a strange way of treating divine cow

    February 16, 2019 9:02 am




Web Special

  • Valentine’s Day 2019: 10 honest love cards that are perfect for real relationships!

    February 14, 2019 1:07 am
  • Valentine’s Day Horror: Pillow, video game- 8 people who fell in love, got married to the weirdest things

    February 14, 2019 12:41 am
  • Valentine’s Day 2019: 5 offbeat Valentine’s Day date ideas on a budget in Mumbai

    February 13, 2019 2:43 pm
  • Dear ladies, today is ‘Galentine’s Day’

    February 13, 2019 10:51 am

Trending

  • Valentine’s Day 2019: These hilarious memes are a must-watch for everyone who is single

    February 14, 2019 11:45 am
  • Ooi Maa! Zomato Agent takes mother promise to gain costumer’s trust

    February 13, 2019 5:12 pm
  • Uber India celebrates Valentine’s Day with ‘pride’, inclusive heart that celebrates many shades of love

    February 13, 2019 3:36 pm
  • Appalling! Video of Indonesian police using snakes to interrogate suspect goes viral

    February 12, 2019 3:28 pm

Horoscope

  • Today’s Horoscope — Daily Horoscope for Saturday, February 16, 2019

    February 16, 2019 7:50 am




Agony Aunt

  • Agony Aunt: My parents are looking at prospective grooms but are not willing to try matrimonial websites

    February 10, 2019 6:56 am

Sex & Relationship

  • Sex and the city: My wife has been having an affair for 10 years, and had two abortions with ‘him’

    February 10, 2019 6:50 am

What is

  • Gujjar quota stir: All you need to know about the reservation protests in Rajasthan

    February 12, 2019 2:37 pm
  • Mamata Banerjee vs CBI: All you need to know about high political drama in Kolkata

    February 4, 2019 10:05 am
  • New DTH tariff regime: Check full list of channels, package rates

    January 30, 2019 9:45 am

Viral

  • Black Panther caught on camera, and it’s unlike the one seen in Marvel films

    February 14, 2019 4:21 pm
  • Wah Ji! PUBG turns into game of love as two die-hard fans gets engaged

    February 13, 2019 4:19 pm
  • Fox News host says he hasn’t washed hands in 10 years; Netizens can’t stop trolling him

    February 12, 2019 6:28 pm

About Free Press Journal

The Free Press Journal is one of the oldest English Daily newspapers from Mumbai with a heritage of more than 88 years. And yet, The Free Press Journal is a contemporary paper and rooted in current urban realities.

Facebook Twitter Linkedin Youtube Email RSS

Movie Reviews

  • Hum Chaar movie: Review, cast, director

    February 15, 2019 7:23 pm
  • Facebook Wala Pyar movie: Review, cast, director

    February 15, 2019 7:20 pm
  • Anandi Gopal movie: Review, cast, director

    February 15, 2019 7:18 pm

Interviews

  • Godrej Memorial Hospital CEO Pravin Swamy: Prevention is key to curb healthcare cost

    February 14, 2019 9:26 am
  • Sancheti Hospital CEO Dr Parag Sancheti: We have created a niche, extended holistic treatment experience

    February 13, 2019 9:33 am
  • Edward I Altman’s Z-score gets rejuvenated for new businesses, even for India

    February 11, 2019 8:11 am
  • Home
  • About Us
  • Authors
  • Careers
  • Disclaimer
  • Privacy Policy
  • Contact Us
  • Advertise with us
  • Archive
  • RSS

@2019 - www.freepressjournal.in. All Right Reserved.