Insurance plans have gained a lot of momentum in recent years. With access to the internet, people are becoming aware of the available options and are now able to make smarter choices. Based on the requirements, priorities, and budget, they can choose suitable plans as per their needs. With a variety of insurance plans available in the market, the latest one that has attracted popularity is TROP. Keep reading as we unfold about the TROP and its benefits.
What is TROP?
TROP, also known as Term plans with Return of Premium option, is the specially designed variant of the term insurance plan that caters according to the need of insurance seekers. However, like any other term insurance plan, it provides financial security to your loved ones and family in case of any eventuality.
The distinct feature of TROP lies in the policy tenure. If we talk about standard term insurance plans, the policyholder cannot access the claim the policy if he or she survives the policy tenure period. Contrary to which, TROP returns the premiums paid by the policyholder over the years if he or she outlives the policy tenure. This is one of the primary reasons for the massive popularity of this pan, as it is ideal, affordable life insurance that returns something at the time of maturity.
Benefits of Buying TROP
1. Return of premium
It is the most significant selling point of this term plan. Securing the future and finances for your family is the ultimate objective of your life as this plan is same as any other standard term insurance plan with one major difference as under TROP Plan – Survival benefits is Offered to the policy holders at the end of the policy term. It promises to return all your money you have been paying as premiums for the plan less any taxes. A feature that is not available in the standard term plans. And you make sure to buy such a plan that fulfills all the future requirements of your family.
2. Highly affordable
The biggest concern is affordability for policy seekers while looking out for suitable term plans. While TROP can cost you more as compared to the standard term plans, but they are still less expensive than the other available plans such as whole life insurance, endowment plans and Unit Linked Insurance Plans (ULIPs). This qualifies as another factor to be popular among people. The affordability makes it an ideal voice for every age group of people, even those who have just started their jobs.
3. Optional riders
Riders come with additional benefits. Ad TROP provides you with the option of extending its benefits by purchasing optional riders or add-ons. TROP assures you of returning your premiums once the policy tenure is over, in addition to this, passengers can provide you coverage for things that are not covered under TROP, making it an ultimate combination for the policyholder.
4. Tax benefit
Who doesn't want to save on taxes? Everybody! And TROP makes you eligible for tax deductions. According to Section 80C of the IT Act, if a policyholder pays premiums of up to 1.5 lakh towards a life insurance policy in a fiscal year, they become eligible for tax benefits.
5. Paid up Value
If customer default Premium payment and policy lapses without being revived, instead of ceasing the cover the insurers reduce the death benefits to suit the premium paid & continue life cover till the policy term expires.
Who can avail Term plan with Return of Premiums?
The minimum entry age offered by TROP is 21 years, and the maximum entry age is 55 years. The rate of the various premium of the policy is decided according to the age of the policy seeker. Everybody can avail term plan with Return of Premiums. A term plan with return of premiums provides a cover that lasts for a significant amount of time, varying from 10, 15, 20, 25, or 30 years. In most of the plans, the maximum maturity age is below 70 years, but some insurance providers offer cover even beyond 70 years.
Is TROP right for you?
The term plan with return of premium is an optimum choice for any individual. Everybody wants profits from investments. Paying premiums for the term insurance plans is a type of investment where you secure your loved ones' future and finances. With TROP available in the market, it provides you with a bonus of returns. All your premiums will be returned once the policy matures, which technically makes it free of cost.