Life insurances are the best way to get your life assured for a good sum and endow it to the nominee of your choice for their betterment after your period. Term Plan with Return of Premium (TROP) is a sophisticated policy designed with utmost care to benefit the insured better than any policy could.
In almost all of the life insurance policies, the premium is the irretrievable token paid in exchange for the cash benefits. If the insured is past the coverage period and is healthy as a horse, the premium paid is lost forever.
However, in TROP, the premium paid will be remitted back to the policy holder if he survives the policy period.
Think about it; you invest in a policy covering one crore with a yearly premium of 10000 for 20 years; the total you paid is completely lost if you survive past the policy term. With TROP, you can claim the premium money back and use it for yourself and your loved ones.
Premium Payment Types of TROPYou can plan your budget accordingly as Term Plan with Return of Premium can be bought with different payment options. You can choose to buy the policy with a single upfront payment, or you can pay yearly. TROP Surrender Benefits
The company doesn’t force you to keep up with the TROP payments if you want to terminate the policy midway. The amount you paid will be remitted back to you without any charges.
You also have the choice to continue with the policy even without paying at the year-end every year. However, the percentage you are short of the complete premium will be held back if you claim the amount. The percentage might differ with different policies, so you are advised to understand how it works before signing up.
Term Plan with Return of Premium sounds too good to be true, right? Well, here is a catch; going with TROP, you will have to spend at least twice or thrice the standard term plans. They are costly, but you are going to have your amount back in your hand after the term ends. Worth the investment, don’t you think?
Learn more about different Online Term Insurance Plans here.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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