Understanding the Term Plan with Return Of Premium
You may already know about the advantages of term plans received by your family after your untimely death. But what happens to your premiums if you remain alive by the end of the term? In pure or conventional term policies, the amount collapses. However, some of the plans provide survival benefits to you. TROP is one of them. It incorporates all benefits of pure term plan, along with the return of premium survival benefit.
So, if you are found alive by the end of the term, you get your premiums back. Thus, no money of yours gets wasted. This already sounds better than the general term plans.
Benefits of Term Plan with Return Of Premium
As mentioned above, TROP covers all the features of a pure term plan. That means the death amount is assured for the beneficiary that you add to your insurance. With this coverage, it also has several benefits like:
- Survival Benefit: This is the most crucial benefit of TROP. You do not lose any money after outliving the term of the policy. Once the time has ended, you can apply for the return of the premiums paid under the plan.
- Tax Benefit: If you invest in TROP, you get the tax benefit for the premiums. The amount that is paid under premiums gets deducted from your tax liabilities. So you can save more money.
- Guaranteed Returns Benefit: Term plans usually have market risks with them. So if the market goes down, you lose your money invested in the insurance. But that is not the case with Term Plan with Return Of Premium. It provides you with guaranteed returns, irrespective of market conditions.
- Rider Benefit: The simple structure of term plans do not fit in the needs of several people. That is where riders come into the role. They are the extra benefits that can be added to the policy according to your requirements.
Now that you know the benefits of Term Plan with Return Of Premium (TROP), you can contact a reliable insurer and seek the best available option.