Term Insurance with Return of Premium (TROP) - Get Back Your Premiums at Maturity

A regular term plan gives peace of mind - but no payout if you survive the term.

If that makes you hesitant, there's a middle ground: Term Insurance with Return of Premium (TROP).

Under a TROP, if you survive the policy term, the insurer refunds all the premiums you've paid, while still offering full life cover protection during the term.

It's ideal for those who want the benefits of life insurance and the assurance that their money won't go unused.

Many policyholders now prefer TROP plans for the mix of security and savings they provide.

What Is Term Insurance With Return Of Premium (TROP)?

A TROP is a type of term insurance where the premiums you pay are refunded if you outlive the policy term.

Life cover during policy term = same as normal term plan.
If you survive = all base premiums (excluding GST/rider costs) returned.

Example:

If you pay ₹10,000/year for 30 years, total ₹3,00,000 - you get ₹3,00,000 back at maturity, plus your family remains covered for ₹1 crore during those 30 years.

How TROP Works - Simple Flow

1 You buy a TROP policy with ₹1 crore cover for 30 years.
2 You pay annual premiums regularly.
3 If death occurs within term → nominee receives ₹1 crore.
4 If you survive → insurer refunds all premiums (excluding taxes).

Key Features Of TROP

Feature	Regular Term Plan	TROP
Life Cover	Yes	Yes
Maturity Benefit	No	Yes (premium refund)
Premium Cost	Low	30-50% higher
Best For	Pure protection	Protection + refund seekers
Riders Available	Yes	Yes (same options)
Tax Benefits	80C, 10(10D)	80C, 10(10D)

Sample Premium Comparison

Age	Cover	Term	Regular Term (₹/yr)	TROP (₹/yr)	Refund At Maturity
25, Non-Smoker	₹1 Cr	35 yrs	₹8,500	₹12,000	₹4,20,000
30, Non-Smoker	₹1 Cr	30 yrs	₹9,800	₹13,900	₹4,17,000
35, Non-Smoker	₹1 Cr	25 yrs	₹12,200	₹16,800	₹4,20,000
40, Non-Smoker	₹1 Cr	20 yrs	₹15,000	₹19,500	₹3,90,000

(Indicative; varies by insurer and city.)

Benefits Of TROP

Money-back guarantee - full premium refund at maturity.
Dual advantage - life cover + guaranteed savings.
Peace of mind - no feeling of “wasted money.”
Tax benefits - premiums under 80C, benefits under 10(10D).
Riders available - Critical Illness, ADB, WOP, Income Benefit.

Limitations Of TROP

Higher premiums - typically 30-50% costlier.
Lower returns - refund doesn’t include interest or tax components.
Better alternatives for investment - invest difference in mutual funds.

Who Should Buy A TROP

Conservative investors who prefer guaranteed money-back.
First-time buyers uncomfortable with “no-return” plans.
Salaried professionals looking for savings-linked discipline.
People with low to moderate risk appetite.

Tax Benefits Under TROP

Section 80C: Premiums up to ₹1.5 lakh/year eligible for deduction.
Section 10(10D): Maturity benefit is tax-free if total premium ≤10% of sum assured.

Local Insights

Avg. refund received (₹1 Cr, 30 yrs): ₹1,25,000.
% of buyers choosing TROP: 27%.
Top TROP insurers: HDFC Life, ICICI Prudential, Max Life.
Most popular rider combo: CI + ADB + WOP.

How To Buy A TROP Online

1 Visit PolicyBachat → Term Insurance → Select “Return of Premium” option.
2 Enter your details (age, income, city).
3 Compare premiums from HDFC Life, ICICI Prudential, Max Life.
4 Add riders if needed.
5 Pay online and get digital policy instantly.

Frequently Asked Questions

What is Term Insurance with Return of Premium (TROP)?

It’s a plan that refunds all premiums you paid if you survive the policy term - while giving full life cover during the term.

Do all insurers offer TROP?

Most leading insurers do. You can compare TROP plans easily on PolicyBachat.

Is TROP better than a regular term plan?

It depends. If you prefer a safety net with refund, choose TROP. If affordability and pure protection matter more, go for regular term.

Do I get interest on refunded premiums?

No, only the total base premiums (excluding GST/rider costs) are returned.

Are TROP payouts tax-free?

Yes, under Section 10(10D), subject to conditions.

Can I add riders to a TROP?

Yes - CI, ADB, WOP, and other riders are available.

Does refund include GST?

No, GST and extra charges are excluded.

What happens if I stop paying premiums mid-term?

Policy lapses, and you lose the refund benefit. Always pay regularly or use auto-debit.

Is medical test required for TROP?

Yes, same as regular term - based on coverage and age.

Can I switch from TROP to regular term later?

No, they are separate policy types; you’d need to buy a new plan.

Can NRIs buy TROP policies?

Yes, NRIs can purchase through Indian insurers via digital KYC and INR premium payment.

Do women get discounts on TROP?

Yes, female applicants usually get 5-10% lower premiums.

Is there any surrender value before maturity?

Yes, partial surrender value may apply after 2-3 years, as per insurer terms.

Are TROP plans available for smokers?

Yes, though premiums are higher. Honest disclosure ensures valid claims.

What if I outlive the policy term?

You get a full refund of all base premiums paid - tax-free.

Customer Reviews

“Got my full premium refund after 30 years - great experience.”

Vikram Pillai, Chennai

“Perfect plan for peace of mind - money isn’t wasted.”

Rohini Deshpande, Pune

“Compared 3 insurers; PolicyBachat showed clear refund details.”

Ravi Iyer, Bengaluru

“Loved the idea of getting my money back - bought instantly.”

Anusha Sen, Delhi

“Best plan for cautious investors like me.”

Karthik Rao, Hyderabad

“Explained TROP clearly - very easy to understand.”

Shweta Joshi, Mumbai

Term Insurance With Return Of Premium (TROP) - Get Back Your Premiums At Maturity