Term Insurance Return of Premium (TROP)


Associated with all the advantages of the simple futures plan, TROP offers a return on income replacement and a premium refund at maturity. Technically, a term repayment plan is a non-participant term insurance. Compared to a long-term plan, the following features are included:

Term Insurance Return of Premium (TROP)

  • The term plan offers only death benefits, while a TROP plan also has maturity advantages.
  • Because of this guaranteed “premium return” function, it is a slightly higher price than a long-term plan.Term Insurance Return of Premium (TROP)

How Does The Return To Premium Life Insurance Work?

Consider a policy with Rs 20 lakh to cover 10 years for which the annual premium is Rs 2000. If the insured dies, the family will get Rs 20 lakh. However, if the insured survives the term, the insurer shall reimburse the aggregate amount of the premium, i.e. Rs 20,000 (Rs 2000×10).

Top Reasons to Buy TROP Plans

There is a segment of customers who expect to use an insurance policy. To address this section, companies have launched TROP plans. This type of futures plan offers the double advantage.

  1. It gives you peace of mind and provides financial security to the family in the event of something miserable happening.
  2. The plan provides a secure premium yield, which means that the total premiums paid during the insurance period are returned to the policyholder.

Listed below are some of the main reasons to include TROP plans in your area.

Provides a Premium Refund at Maturity

It provides a premium refund at maturity if the insured survives the plan, so you do not lose the premium over the years. This makes the plan ideal for investors looking for term insurance coverage, but is not very enthusiastic about the idea of ​​getting any money. As such, the payment plans are designed to get the best of both worlds, coverage of term plans and the savings of traditional plans such as personnel plans.

Provides a Secure Return of the Premiums Paid

It provides a secure return of the premiums paid, which excludes additional premiums to improve coverage with the trader (if applicable). Fixed-term guarantees that the insured person will refund their money. Insured persons should not worry about their return. On the other hand, the assumption of additional riders, which help to accumulate savings, means that the insured can actually return more than he has invested in the repayment of the repayment of the insurance plan.

Optional Rider

The optional rider which can be added in a personalized way for better protection so that the plan can provide complete protection for the family in case of the death of the insured. Most insurance companies offer a number of optional riders that the insured can take in addition to the policy of returning the term insurance policy. These can be taken at the time of signing the policy or added later. It is best to take riders like personal accidents, physical disadvantages, etc. at the time of taking the policy because they provide a full-time coverage right to enroll in the policy of reimbursement of the duration of payment insurance, and this also at a very low additional cost.

Offer More Premium Payment Options

TROP plans offer more premium payment options as per year, monthly, etc. Term insurance Payment plans provides an individual the option of selecting the payment option that best suits them. For example, if the insured begins career or has other considerations to consider, the individual payment options are best because they are smaller and have a smaller impact on outflows than the amounts that needs to be paid quarterly, semi-annual or annually. On the other hand, if the insured can make the payment, the choice for the annual payment option is the best since the total overflow is lower than other alternatives in the term insurance plan.

Characteristics of Term Insurance

Long-term insurance repayment policies, also referred to as TROP plans, differ from term plans because they provide maturity or survivor benefits in addition to death benefits. Let us examine these features a little more in detail so that you can make a good decision when you are looking for insurance coverage for you.

Insurance Amount

The insurance amount in the TROP plans refers to the life insurance cover that the insured receives in the enrollment plan. The insurance amount insured under these plans is usually higher than the amount available for the same amount of the premium under the traditional personnel policies. This is because personnel policy has superior returns over time schedules and can also make a payment over a significantly longer period of time. The TROP policy, on the other hand, simply refers to the premium that the insured paid in the plan.

Survival Advantages or Validity Requirements

The benefits of survival or maturity for a TROP plan are what distinguish it from a traditional conceptual policy. In the case of a term plan, the insured person does not receive survival or exit advantages. However, under a simple TROP plan, the insured returns all the money that he has invested as a premium for the plan minus all taxes. In addition, the insurance company may in some cases pay more than the premium paid when certain conditions are met. For example, the Aviva Life Insurance Company offers a 110% or 10% return on the premiums paid on your Aviva i-Shield TROP plan.

Death Benefits

The duration of the insurance policy provides candidates the sum insured when the uncertainty happens and the policyholder does not survive the mandate of the policy. Many insurance companies also offer a higher amount, which can be calculated as a higher amount of the insured sum, the due date premium or a certain percentage of the previously paid premium. Companies can offer more benefits depending on the plan or method of paying the premium or the type of coverage operated. For example, policies with regular premium payment options may also receive a death benefit which is sometimes the annualized premium. On the other hand, policies with optional rider may have some additional benefits.

Payment Options

Insurance companies have established several long-term rental insurance plans, which offer flexible payment options. In most cases, the insured can choose the payment option that best suits them. Standard terms of payment are monthly, quarterly (i.e. every 3 months or 4 quarters per year), semi-annually and annually. Some insurers also offer a one-time premium payment and allow the insured person to pay only a few years (e.g. 10 years) and receive cover for a larger number of years (e.g. 30 years). Each payment option has its own advantages. For example, the monthly payments are small, while the annual payments are obviously higher.


This article provides the knowledge and information you need to make the best financial decisions. Send basic details like your name, annual income, coverage, etc. to the company for more details and to compare lucrative plans to find as well as prepare for the unexpected fallout of life.

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