Return of premium is a term plan with death benefits, in which, if the policyholder survives the policy term, it returns the premium that’s paid. We tell you the benefits of investing in such a plan.
While there are many life insurance options available in the market, a term insurance is the purest of them all. The premiums that you pay towards an endowment plan or a ULIP are far greater, compared to the premium you pay in a term insurance plan, which also provides you an amount assured to cover your life. Aegon Life’s iTerm Plan offers you a life cover for 100 years by paying a premium of Rs 755 only (the final assured sum and premiums may differ depending on the insurer).
A term insurance plan is also a smart way to backup any of your other vested interests. The obvious question that you might ask is how? If other avenues where you have invested in, don’t turn out to be fruitful due to unstable markets (specifically in the case of ULIPs), a term insurance ensures you get your death benefits. Term insurance is also cost-effective since it gives you an option to leave behind a considerable amount of money for your family, without burning a hole in your pocket.
Return of Premium term life insurance policy is also referred to as Term Insurance Return of Premium (TROP). Having all the benefits of a simple term plan, with TROP, you can even avail of income replacement and premium refund at maturity. Basically, ROP is a term plan with death benefits, in which, if the policyholder survives the policy term, it returns the premium that’s paid. On the other hand, in a regular term insurance, insurers pay only when the insured person dies. The following case study can help you understand ROP term life insurance policy better.
Consider a policy with a yearly premium of Rs 5,000 that has Rs 50 lakhs cover for a time of 20 years. In case of the insured’s death, the family will be paid the sum assured, that is, Rs 50 lakh. However, if the insured survives the entire term, the insurer will have to return the premium or Rs 1 lakh (Rs 5,000 x 20).
Aegon Life’ iReturn is an online term insurance plan that provides death benefits along with an inbuilt terminal illness cover. Unlike a simple term plan, iReturn gives you your money back if all goes well – so you get back the amount you pay as premiums at the end of the term.
Having a term life insurance is a necessity today, as it covers your family’s finances after you. And with a return of premium term plan, you can be assured to get back your money in return. So go on, and get insured today!
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