Top 5 Term Plans with Return of Premium in India 2025

Discover the top 5 term plans with return of premium in India for 2025. Get life coverage with 100% premium refund and secure your financial future.

8 min read

March 22, 2025

OneAssure Team

At a Glance

  1. What is a Term Plan with Return of Premium?
  2. Benefits of Choosing a Term Plan with Return of Premium
  3. 5 Best Plans in India for Term Assurance with Return of Premiums for 2025
  4. Choosing the Right Term Plan with Return of Premium 
  5. What's causing the Return of Premium Term Plan's rising admiration?
  6. Conclusion

What is a Term Plan with Return of Premium?

A Term plan with a return of premium is a unique type of life insurance that combines the advantages of a pure life insurance term with an added maturity benefit, the policy term typically ranging from 10 to 30 years. Like all traditional term life insurance plans, TROP ensures that at the death of the insured during the term of the policy, a financial benefit, termed death benefit, is paid to the nominee named by the policyholder. 

However, their differentiator from most other term plans is that upon the survival of the insured at the end of the policy term, the policyholder is entitled to a refund of all premiums paid by him/her under the policy, excluding taxes and other premium charges. This has answered one of the biggest criticisms generally put against term insurance, that premiums paid are wasted if no claim is made.

TROP is especially attractive for those who want life cover but do not want to look at plans without benefits upon maturity. This brings to the table the elements of protection along with savings, which is why it is preferred by a very large percentage of conservative investors looking for financial security along with the assurance of getting their money back. Although TROP will cost comparatively higher premiums than regular term plans, the level of these end-of-term guaranteed premium refunds boosts financial comfort, providing high attractiveness toward TROP for many.

Benefits of Choosing a Term Plan with Return of Premium

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Assured Return of Premium: A Term Plan with Return of Premium or TROP is a plan that is packed with a lot of benefits, making it an attractive choice for such individuals who are looking for both financial cover and a guaranteed return. One such benefit is the Assured Return of Premium in which all the premiums will be refunded if the policyholder survives the term. As human beings, we feel the premiums paid are never wasted over the years, and it is a similar complaint with normal term insurance plans.

Comprehensive Life Coverage: Comprehensive Life Coverage constitutes one more essential advantage. In case the policyholder dies prematurely during the policy term, a large sum is paid to the nominee as a benefit on death and the dependents are put at ease in continuing with the lifestyle.

Tax Benefits: TROP offers tax benefits of up to 1.5 Lakhs under Section 80C of the Income Tax Act wherein policyholders can themselves give deductions for all the premiums paid. Maturity benefit which is simply termed as refunded premiums is also tax-free under Section 10(10D) (Digit Life Insurance)

Flexibility in Payout Options: Flexibility in Payout Options is another area where it offers a bit of an advantage over some other similar plans; some insurers allow either a lump sum payment or staggered payouts to suit the financial needs of the family. 

Affordable Premiums: This sweetens the whole deal, especially since TROP is pro-premium return, yet also affordable, especially if one buys it as early as possible; thus, available for quite a large number of people seeking to save and insure at the same time.

Also Read: Term vs Whole Life Insurance: A Comprehensive Guide

5 Best Plans in India for Term Plan with Return of Premiums for 2025

LIC Jeevan Amar with Return of Premium Option

Key Features

  • An extremely flexible plan with multiple choices of premium payment which includes a single payment or a limited payment term. 
  • Age at entry permitted up to 80 years. 
  • LIC offers a high claim settlement ratio. 

Why Choose This Plan?
For us, good name means good value. The return of premium is a benefit for future assurance, where if a policyholder survives his term, he will receive back all premiums paid toward the policy. 

Eligibility

  • Age at Entry: 18-65 years
  • Policy Terms: 10-40 years
  • Min. Sum Assured: ₹25 lakh.

Claims Refund
In the event of survival of the life insured, refund of premiums paid under the base plan.

HDFC Life Click 2 Protect Return of Premium Plan

Key Features

  • Apart from the Return of Premium feature, multiple coverage options are available.
  • Riders for critical illness and accidental death benefits are offered.
  • Special premium rates are applicable for non-smokers and for women.

Why Choose This Plan?
In terms of flexibility and all-round coverage, this plan comes under one of the best term insurances with return of premiums in the year 2025 at HDFC life.

Eligibility

  • Entry age=18/65 years.
  • Policy term: 10-40 years.
  • Minimum Sum Assured: Rs. 50 lakh.

Claims Refund
100% of the premiums will be refunded on the survival of life up to maturity.

SBI Life Smart Shield with Return of Premium Option

Key Features

  • Either Level Cover or Increasing Cover can be chosen.
  • Rider of the premium return will refund the full premium amount.
  • Add-on riders for accidental death and critical illness.

Why Choose This Plan?
SBI term insurance with return of premium is a high-in-demand product due to the credibility and extensive service network of the brand.

Eligibility

  • Entry Age: 18 to 60 years
  • Policy Term: 5 to 30 years
  • Minimum Sum Assured: Rs 25 lakh

Claims Refund
In case the insured survives until the end of the term, the premium (excluding taxes and rider charges) is refunded.

Max Life Smart Secure Plus Plan with Return of Premium

Key Features

  • Up to 85 years of coverage.
  • Death benefits with terminal illness coverage.
  • Various riders for critical illness and accidents are available

Why Choose This Plan?
Max Life offers one of the great term insurance with return on premium policies, characterized by its flexibility, additional rider benefits, and premium refunds.

Eligibility

  • Entry Age: 18 to 60 years
  • Policy Term: 10 to 50 years
  • Minimum Sum Assured: INR 5 million

Claims Refund
All the premiums paid will be refunded if the life assured survives the term.

Complete Protection Publicity by Tata AIA Life Insurance 

Key Features

  • Life assurance for a denominated value up to age 100.
  • Flexibility to choose the premium return option.
  • Enhanced coverage for lady insureds.

Why Choose This Plan?
With a customer-oriented approach and an innovative lifestyle change, Tata AIA offers a dependable term plan with a return of premium catering to all diverse life stages and needs.

Eligibility

  • Entry Age: 18 years to 65 years
  • Policy Term: Between 10 years and 40 years
  • Minimum Sum Assured: ₹50 lakh

Claims Refund
100% Base Premiums are refunded at maturity.

Also Read these: Public vs. Private Health Insurance: Pros and Cons

Choosing the Right Term Plan with Return of Premium 

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Opting for a Term Plan with Return of Premium (TROP) will necessitate weighing up several factors. These have to be evaluated in order to ensure the policy is in line with your financial targets while providing a sufficient safety-net. You can compare the policies on OneAssure.com, keeping the following pointers in mind:

  • Premium Affordability:

Compare premiums between various insurance providers for the same coverage amount and policy term. Although TROP premiums may be higher than traditional term policies owing to their return of premium benefit, they ought to fit in with your budget comfortably. The earlier you purchase a policy, the lower the premiums are assumed to be.

  • Claim Settlement Ratio (CSR): 

The percentage of claims settled by an insurer indicates the Claim Settlement Ratio. Always choose insurers with a consistently high score because it helps in determining their reliability in claim processing and timely payments to beneficiaries.

  • Coverage Amount: 

The coverage amount should accordingly consider outstanding loans for your family, expenses waiting in the future (education, weddings, etc.), and lifestyle expenses. Adequate coverage makes certain that your family’s financial needs are met in your absence.

  • Policy Term:

The term for your insurance policies should be pegged precisely against the major financial obligations you have to meet, such as home loan clearing or children education. It should also be in harmony with your retirement plans.

  • Rider Options:

The policies apart from critical illness cover, accidental death benefit, waiver of premium, etc., shall be a part of the policy for overall protection against risk.

  • Terms of Premium Refund:

After that, look clearly into terms and conditions regarding premium refund in the policy. Pay extra attention to exclusions, deductions (like taxes or rider premiums), or guarantee in all situations about the refund amount.

With these factors in mind, you can go ahead and choose the best TROP towards providing maximum coverage within your budget with an element of security and savings, thus giving you peace of mind with and for your family.

What's causing the Return of Premium Term Plan's rising popularity?

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Term Plans with Return of Premium (TROP), which have become immensely popular among people seeking financial protection, plus the added benefit of a tangible return, are steadily gaining appeal. There are several reasons that are increasing this popularity:

  • High Coverage, Low Premium:

Standard term plans for life insurance give death benefits, but if the life insured survives, the premiums payable would all go to waste. Thus, many considered it just a financial burden without any financial returns. This concern is supported by TROP, as it allows you the full refund of the premium for making TROP an interesting proposition for buyers wanting some returns on their investments.

  • Hybrid Nature- Merging Assurance and Savings:

TROP embodies both life cover and savings. With TROP, the assured enjoys extensive life cover for his dependents as well as a premium refund guarantee if he survives the complete policy term. This is an interesting mix of features for saving and risk-averse people.

  • Financial Discipline:

The feature on premium refunds after the completion of an entire policy term heightens the financial discipline that TROP inspires, making him a long-term bene-mer approach and has kept policyholders under coverage for a longer time.

  • Simplicity and Transparency: 

The TROP plans are in terms of what is relatively easy to understand as simple benefits - either a death benefit or a refund of premiums - thereby providing clear and legible peace for policyholders. Such transparency appeals to those looking for uncomplicated financial products.

Thus, TROP bridges the divide between pure risk cover and savings, thus being an attractive solution to conservative investors looking to add value and protection to a single plan. However, for those interested in more traditional insurance options, India’s best policies are available on OneAssure.com.

Conclusion

The term plans that take care of premium return are ideal for those who need life insurance protection, in which case, the policyholder does not feel that he/she is losing the premium. It provides the benefits of full financial security and, at the same time, has a saving element in that the full financial commitment will be returned in case the policyholder survives the term. 

Among the best term insurance with return of premium options 2025, LIC, HDFC Life, and SBI Term Insurance with Return of Premium stand out on account of their credibility, flexibility, and customer-friendly features. 

Match your financial objectives and your requirement for coverage in selecting the right TROP policy that meets you best. Get more information and advice from experts on OneAssure.

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