Term Plan with Return of Premium (TROP)

Key Benefits of Term Insurance with Return of Premium:

A Return of Premium (TROP) Term Plan blends life insurance protection with a guaranteed return of premiums, offering a compelling value proposition for those who want both security and savings. Here's why you need a TROP.

1. 100% Premium Refund on Survival:

If you survive the entire policy term, the insurer will refund all base premiums paid (excluding applicable taxes, rider premiums, or extra charges). This feature transforms the plan from a “pure expense” into a risk-free savings tool, ensuring you get your money back if no claim is made.

2. Full Life Cover During the Policy Term:

Just like a regular term plan, a TROP plan offers comprehensive life coverage throughout the term. In the unfortunate event of your death during the policy term, your nominee receives the full sum assured, providing financial security to your loved ones.

3. Risk-Free Savings with Guaranteed Returns:

Unlike investment-linked plans that are subject to market risks, the TROP plan offers guaranteed, tax-free returns of premiums. It’s ideal for those seeking stable and predictable outcomes without exposure to market volatility.

4. Peace of Mind: No Wasted Premiums:

Many people hesitate to buy term insurance because they feel they’re paying for something they may never use. The TROP plan eliminates that concern. You either leave behind a financial safety net for your family or receive your premiums back, ensuring your money never goes to waste.

5. Encourages Financial Discipline:

The plan requires regular premium payments (monthly, quarterly, or annually), which help inculcate structured savings habits. It ensures you consistently contribute toward long-term financial protection without skipping.

6. Tax Benefits Under Indian Tax Laws:

As per section 80C of the Income Tax Act, premiums paid are eligible for tax deductions up to ₹1.5 lakh per annum. Additionally, as per section 10(10D), the death benefit and the maturity amount (premium refund) are exempt from tax, subject to prevailing terms and conditions.

To purchase a Return of Premium (TROP) Term Insurance Plan, insurance companies require specific documents to verify your identity, assess your financial background, and complete the underwriting process. Here's a detailed list of what you’ll typically need:

A Return of Premium Term Plan (TROP) is designed to provide financial protection to your family while also ensuring that you don’t lose your money if you outlive the policy term. It combines the core purpose of term insurance, life coverage, with a guaranteed maturity benefit.

Here's how it works in both scenarios, whether the policyholder survives the term or not.

Example:

Mr. A, a 30-year-old professional, purchases a Return of Premium Term Plan with the following details:

• Sum Assured: ₹25 lakh
• Policy Term: 30 years
• Annual Premium: ₹15,000
• Total Premiums Paid Over 30 Years: ₹4.5 lakh

In Summary:

Choosing the right return of premium term insurance plan involves more than just comparing premiums. Since you're investing for both protection and returns, it’s important to evaluate the plan from every angle. Here’s how you can make a well-informed decision:

1. Compare Plans from Trusted Insurers: Start by researching and comparing plans offered by reputed life insurance companies. Look for insurers with:
   • Strong brand credibility
   • Transparent policy terms
   • Easy claim process
   • Digital support and policy servicing
     
     Use comparison tools or aggregator websites to shortlist a few top-rated plans before deciding.
      
2. Evaluate Riders and Add-On Benefits: Most TROP plans allow you to enhance your coverage with optional riders such as:
   • Critical illness cover
   • Accidental death benefit
   • Waiver of premium on disability or critical illness
     
     These riders offer additional protection for a small increase in premium. Choose riders based on your lifestyle, profession, and health risks.
      
3. Choose a Policy Term That Matches Your Life Goals: Select a policy term that aligns with your long-term financial goals. For example:
   • If you're planning until your children complete their education, opt for a term of 20–25 years.
   • If you're securing income replacement until retirement, go for a longer policy duration (up to age 65–70).
     
     Remember, longer terms provide longer coverage but may also increase the premium amount slightly.
4. Check the Claim Settlement Ratio: The claim settlement ratio (CSR) is a key indicator of the insurer’s reliability. A high CSR (typically above 95%) means that the insurer honors most of the claims it receives. This gives your family better assurance that the sum assured will be paid promptly in case of your absence.
   
   
5. Understand What’s Included in the Refund: While a TROP plan refunds the premiums paid, it’s crucial to understand what is excluded from this refund:
   • GST and taxes paid on premiums
   • Charges for additional riders
   • Policy servicing or administrative fees
     
     Read the policy brochure or fine print to avoid surprises at maturity.

Bonus Tip: Use a Return of Premium Calculator

To make the best decision, try an online TROP calculator to estimate:

• Premium outgo
• Expected maturity benefit
• Coverage required based on income and liabilities

This will help you align the policy to your financial goals and affordability.

At Canara HSBC Life Insurance, we understand that when you invest in a term plan, you’re not just seeking protection but also looking for value, flexibility, and trust. Our Return of Premium Term Plan is designed to offer you the best of both worlds: life cover for your loved ones and a guaranteed return of all base premiums if you outlive the policy term. Here's why our plan stands out:

1. A Brand You Can Trust:

Backed by the strong legacy of Canara Bank, HSBC, and Punjab National Bank, we are proud to be one of India’s most trusted life insurance providers. Our high claim settlement ratio reflects our commitment to delivering on our promises when it matters most, ensuring your family gets the financial support they deserve without unnecessary delays.

2. Flexible, Customisable Coverage:

We offer customisable term plans that adapt to your life stage and financial goals.

With our Return of Premium Term Plan, you can choose:

• The policy term and premium payment method that suits you best

• A sum assured that aligns with your future needs

• Valuable add-on riders like critical illness or accidental death to boost your protection

You have complete control to build a plan that works for you and your family.

3. Tax Benefits with Guaranteed Return of Premiums:

We know the importance of balancing protection with returns. That’s why our TROP plan ensures that if you outlive your policy term, you get all your base premiums back, so your money never feels wasted.

• Enjoy tax savings under Section 80C on premiums paid

• Get tax-free maturity benefits under Section 10(10D)

• Receive a guaranteed lump sum refund of all base premiums (excluding taxes and rider charges)

It’s insurance that protects and pays back. At Canara HSBC Life Insurance, we are committed to helping you build a financially secure and rewarding future.