In the current testing times, the dire need for an insurance cover is definitely being felt by one and all. To live a longer and healthier life, we all make conscious choices and decisions that can prolong our lives and allow us to enjoy them to the fullest.
Just like daily exercising and routine diet plans help keep your health in check, term insurance offers financial safety against life’s uncertainties, ensuring that you and your family members are covered even during tough times.
A Term Insurance with Return of Premium (TROP) can provide comprehensive protection against financial instabilities through various stages of life. This type of plan is essentially a long-term financial security option, as it offers protection against life-threatening ailments, accidental injuries, and various other unprecedented emergencies. Here are some of the well-known features of term life insurance that a policyholder can avail-
- Accidental death benefit
- Protection against life-threatening critical illnesses
- Waiver option of premium benefit
- Tax-saving benefits
- Survival benefit
If you run a term life insurance comparison between traditional plans and the term plan with return of premium, then the latter will probably come out a winner. It has additional benefits, coverage at an affordable price and flexibility, unlike most basic life insurance plans, which makes it a viable option.
What Are The Features Of A Term Life Insurance Policy?
These days, people are more into buying term insurance with return of premium option as the policyholder himself gets back the entire premium he has paid, which he can use for his own needs or for those of his loved ones. Here are some of the features of a term insurance with return of premium that you must keep in mind:
- Multiple Options For Premium Payment
As a policyholder, you can choose the best-suited premium payment option from different options such as one-time payment, or regular pay, limited pay or paying till 60 years, etc. You can discuss it out with your family and choose one based on their current and future financial commitments.
- Higher Premiums
This is one of the biggest benefits of term plan with ROP as, unlike other term life insurance plans, the premium paid for a TROP plan is comparatively higher, and the insured can be refunded with that very premium paid.
- Low Sum Assured
A TROP offers a lower sum assured amount than compared to other conventional insurance policies, as the premium amount is refunded back to the policyholder.
- Surrender Value
The surrender value of term insurance with return of premium option will be high for the policyholders who make single premium payments, wherein the entire premium is paid by the policyholder right at the start of their term policy.
- Limited Policy Tenure
A term insurance with return of premium plan comes with a limited policy tenure, which may be up to 70 or 75 years.
- Paid-Up Value
If the policyholder makes a premium payment default, the policy shall not terminate. Instead, the policy cover shall be reduced until the end of the policy tenure, provided the insured has paid premiums for a minimum number of given years (which is defined by the respective insurance company).
This type of term life policy is essentially a long-term financial security that offers protection against life-threatening ailments, accidental injuries, and various other unprecedented emergencies. Make sure that you do not forget to customise it for yourself and your family to suit everyone’s needs.
Why Is A Term Plan With Return Of Premium Ideal For You?
If you are looking for a term life insurance policy that offers long term financial security against life-threatening ailments, accidental injuries, and other emergencies, then Max Life’s Term Plan with Return of Premium is your ideal bet.
The term insurance with return of premium plan offers additional rider benefits to enhance the coverage of the term plan. Though these are optional riders, most of the insured customers tend to select an add-on rider that meets their requirement and covers their family too.
You can also choose to entitle your wife and children for this term plan with return of premium under the Married Women’s Property Act of 1874 because, in case of the policyholder’s untimely death, it will give insurance cover payout to both the wife and the children. Moreover, they will also get the survival benefits in the form of a refund of premiums if the policyholder has survived the policy term.
To sum it up, a term plan with return of premium offers death and survival benefits, making it one of the ideal saving plans for the future. Though the premiums are a bit high, the policyholder is guaranteed with cash returns. Try and find yourself a policy that offers all these benefits, at a premium paying rate you are comfortable with and for a policy tenure that is as long as possible.