1. What will happen to Term Insurance with Return of Premium after maturity?

If the term insurance plan with the return of premium matures, you will receive a refund of the premium paid during the policy tenure.

2. What are the minimum eligibility criteria for a Term Plan with a Return of Premium?

The minimum eligibility criteria depend on the life insurance company and the plan that you choose to buy. Usually, term plans with a return of premium are issued to individuals aged 18 years and above.

3. Can I add riders with a Term Plan with Return of Premium?

If the term plan with return of premium offers a choice of riders, you can add suitable riders to the coverage and enhance the scope of your policy. However, each rider would come at an additional premium.

4. Is a critical illness rider available with a Term Plan with a Return of Premium?

The availability of critical illness riders depends on the plan that you choose. For instance, Bajaj Allianz Life Smart Protection Goal offers the critical illness rider with the term plan with the return of a premium option. .

5. Can you get your money back from a term insurance plan on maturity?

If you buy a pure protection term plan which has no maturity benefit, you will get nothing on maturity. However, if you choose the return of premium term plan, the premium that you had paid would be refunded on maturity.

6. What is the death benefit under the return of premium term insurance plan?

The death benefit is usually the chosen sum assured which is payable if the insured passes away during the policy tenure.

7. What is the premium payment frequency under a TROP?

The premium payment frequency depends on the plan that you choose. Usually, TROPs allow four premium payment frequency options – annual, half-yearly, quarterly and monthly.

8. Will a return of premium term insurance be more expensive?

Compared to a pure term insurance plan, a return of premium term insurance policy would be more expensive. This is because pure-term plans do not offer any maturity benefit but the return of a premium term plan refunds the premiums paid on maturity.

9. Will smoking affect the term insurance with the return of premium?

Yes, smoking affects the premium of term insurance with the return of the premium. It increases the premium paid for the policy because smoking increases your mortality risk.

10. How much is the premium for 1 crore term insurance with Return of Premium?

The premium depends on your age, lifestyle habits, medical condition, policy details selected and other risk factors. For instance, if you are a 30-year-old male who buys Bajaj Allianz Smart Protection Goal * for a term of 25 years and chooses to pay regular premiums every year, the first year premium would be ₹5,847 plus taxes assuming you don’t smoke, the sum assured is ₹50 lakhs and you have selected the return of premium option without any riders.

11. Should I buy a regular term insurance plan or a term plan with a return of premium?

The choice depends on your needs. If you want term insurance coverage with the option of a refund of premiums on maturity, you can choose the return of premium term plan. On the other hand, if you are looking for only protection at a cost-effective rate, you can buy a regular term insurance plan.

Term Plan with Return of Premium (TROP) 2025

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Under a term plan with a return of premium, you choose the following details –

The sum assured
Policy tenure
Premium payment term
Premium paying frequency
Riders (if any)
Any other optional features that are available and you want to choose

Depending on these factors, your age and other risk parameters, the premium is calculated. You pay the premium over the chosen premium payment term and in the chosen frequency. If the life insured passes away during the policy tenure, the death benefit is paid. On the other hand, if the plan matures and the insured is alive, the premiums paid are refunded.

Let’s take an example.

Ravi, aged 30 years, buys the Bajaj Allianz Life Smart Protection Goal Plan* and chooses the return of premium option. The plan details are as follows –

Term	Details
Sum assured	₹50 lakhs
Policy term	25 years
Premium payment term	25 years
Premium payment frequency	Annual
Optional riders or other benefits	Nil
1^st Year Premium payable	₹5,847 plus taxes

Instance 1 – Ravi passes away after 10 years.

Solution – His nominee receives a death benefit of ₹50 lakhs and the plan is terminated.

Instance 2 – Ravi survives the policy tenure of 25 years

Solution – The plan refunds his premium and he receives a maturity benefit of ₹1,55,151 on maturity.

The choice of coverage depends on different factors. Some of these factors are as follows⁵–

Age
When you are young, you might have limited financial responsibilities. However, the responsibilities increase as you grow older. As such, choosing a higher sum assured is better to take care of future needs.

For instance, if you are 30 years old and will retire at 65, you can work for 35 years. If your annual income is ₹10 lakhs, your family will lose ₹3.5 crore on your premature demise. Thus, you need a coverage of ₹3.5 crores. On the other hand, if you are 40 years old and have 25 more working years, the loss would reduce to ₹2.5 crore (25 years X ₹10 lakhs). Thus, at an older age, the coverage required would be ₹2.5 crore.
Number of dependents
The number of financial dependents also affects the coverage need. If you have many of dependents, you would need a higher coverage to take care of multiple responsibilities that you might have.
Basic lifestyle needs
Your coverage also depends on your lifestyle expenses also determine the coverage amount. If your lifestyle expenses are high, you need a high sum assured to meet them. The same holds true if you have limited expenses.
Inflation rate
Inflation is the rise in the price of goods and services. As inflation rises, so do your financial needs. That is why, your coverage should be optimal to take care of the expenses which might increase due to inflation.
Goals
Your financial goals would also affect your coverage requirement. The more goals that you have the higher the financial corpus that you would need and vice versa.
Existing assets and liabilities
The existing investments and debts that you have determine your coverage needs. If you have existing assets or investments, your coverage requirement would be lower. On the other hand, if you have liabilities, your coverage would be higher so that the liabilities can be met.

Term plan	Term plan with return of premium
Only death benefit is paid under term plans. If the plan matures, no benefit is paid²	If the insured passes away during the policy tenure, the death benefit is paid. On the other hand, if the insured survives the tenure, the total premiums paid are refunded as a maturity benefit².
The premium is low²	The premium might be a little higher compared to pure term plans¹
If you discontinue premium payments, the plan will not acquire any paid-up value.⁶	If you stop paying premiums, you don’t lose the plan benefits. The plan benefits are reduced if at least 2 years’ full premiums have been paid⁶. You can continue the coverage at the reduced value which is called the paid-up value⁶.
There’s no surrender value under the plan⁶	You can also exit the coverage and get a surrender value if you have paid at least 2 full years’ premium⁶

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Term Insurance with Return of Premium (TROP)

Get ₹1 Crore Term Insurance Plan at ₹15*/Day

Enjoy a 16% Discount on 1st year Premium**

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

How does a Term Plan with a Return of Premium work?

Why Choose a Term Plan with Return of Premium Option?

Life insurance coverage6

Maturity benefit6

Tax benefits

Peace of mind

Fulfilment of financial goals6

Who Can Buy Term Plan with Return of Premium (TROP)?

Term Insurance Plans by Bajaj Allianz Life

What are the features of a Term Plan with a Return of Premium?

Return of Premium Option with Limited Pay

What is the difference between Term Insurance and Term Insurance with Return of Premium?

How to choose the best Term Insurance with Return of Premium?

1. Coverage offered

2. Premium amount

3. Rider benefits

4. Available discounts

5. Claim Settlement Ratio

Proposal form

photographs

Proof of address

Proof of age

Proof of income

Medical report

Any other document

How much Term Insurance with Return of Premium cover do I need?

How to buy a Term Plan with Return of Premium online?

Why Bajaj Allianz Life Insurance ?

Claim Settlement Ratio~

Get 1 Day Claim Approval%

Stable Rating by CARE$$

Assets Under Management (AUM)***

Number of Lives Covered##

Solvency Ratio of 359%^^^

Term Insurance with Return of Premium FAQs

1. What will happen to Term Insurance with Return of Premium after maturity?

2. What are the minimum eligibility criteria for a Term Plan with a Return of Premium?

3. Can I add riders with a Term Plan with Return of Premium?

4. Is a critical illness rider available with a Term Plan with a Return of Premium?

5. Can you get your money back from a term insurance plan on maturity?

6. What is the death benefit under the return of premium term insurance plan?

7. What is the premium payment frequency under a TROP?

8. Will a return of premium term insurance be more expensive?

9. Will smoking affect the term insurance with the return of premium?

10. How much is the premium for 1 crore term insurance with Return of Premium?

11. Should I buy a regular term insurance plan or a term plan with a return of premium?

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Enjoy a 16% Discount on 1^st year Premium**

Life insurance coverage⁶

Maturity benefit⁶

Fulfilment of financial goals⁶

Claim Settlement Ratio^~

Get 1 Day Claim Approval^%

Stable Rating by CARE^$$

Assets Under Management (AUM)^***

Number of Lives Covered^##

Solvency Ratio of 359%^{^^^}