Learn Everything About Term Insurance Policy That Refunds You Premium

touhidakhatun78

Among the several types of life insurance products available in the Indian financial landscape, a term insurance policy is the simplest and most self-intuitive option available. It's essentially a pure life cover that solely focuses on sustaining your family's finances in the event of your demise. In comparison to traditional whole life policies, term plans offer higher coverage at very nominal premium rates and offer several exclusive advantages. Yet, people often hesitate to invest in these plans just because there's no maturity benefit involved in it. A term plan that refund you premium A term plan that refund you premium You may think that your entire capital will go in vain just in case you survive past the policy tenure, which is a viable excuse to not invest in a term plan - but not anymore.

There's something that can help you get past this fear for real. Introducing term plans with return of premium - a standard term insurance policy, but with a twist. Apart from the death benefit, these term plan variants return all your premiums paid Italy Phone Numbers List in case you survive throughout the policy tenure. This article aims to inform you about this unique variant and share instances when it can be extremely beneficial to you. Therefore, if you are looking to get a life cover, make sure you keep reading to make your decision more informed. What Term Plan with Return of Premium Exactly Is? Similar to a regular term plan, a TROP also covers you against the risk of death and provides a financial corpus to your family in the event of your unfortunate demise. In addition to this, if you survive throughout the policy tenure, it also provides you with a maturity benefit.



Here are some interesting things you should know about these plans: The maturity benefit offered in these plans is the sum of the premiums you've paid throughout the policy tenure There are no capital gains over the accumulated sum of money as no investment aspect is involved In case you opted for a rider with your policy, the additional amount you've paid for it won't be included in the maturity proceed Now when you know about the fundamentals of term insurance policies with the return of premium option, you should consider understanding how these plans work to gain a more transparent vision for your financial plans. How Does a Term Plan with Return of Premium Works? Let's understand the working principle of TROP with an example - assume that you're purchasing a policy worth Rs. 40 Lakhs for a term of 10 years with an annual premium of Rs. 4000. In the event of your death, your family will get Rs. 40,00,000 as the assured sum.