Term Insurance 281 views December 27, 2019

Best Term Insurance Plan With Money Back

Ravi was a 39-year-old successful businessman He had always been wise with his money and looked to get solid returns from all his investments. He looked at all spends as investments and this is why he refrained from spending money on a term insurance plan. Term insurance does not offer a return component when the policyholder outlives the policy period. Because of this, Ravi was never interested in getting term insurance. But as he grew older, he realised his family needed the backing of a term insurance plan. At the same point in time, he heard about the term insurance plans with a maturity benefit. Ecstatic, Ravi promptly bought the best term insurance plan with money back option. He was pleased and his family was protected.

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What is a term insurance plan with money back?

Term insurance is available in many varieties. The simple and most common type of term insurance is the level term plans where the sum assured remains constant throughout the policy period. There are also available the increasing term insurance plans where the sum assured increases as the policy progresses. The decreasing term insurance plans have a decreasing sum assured as the policy progresses. All these plans promise to pay the death benefit when the policyholder dies but do not have a return component if he outlives the policy period.

A term insurance plan with return of premium, or a TROP as it is popularly known, is a type of term insurance that offers a maturity benefit. The policyholder gets the money he invested back if a claim is not made in the tenure of the plan. The best term insurance plan with money back works on this principle and helps people like Ravi who want returns from their investments.

Benefits of buying the best term insurance plan with money back

Here are some benefits you get when you buy a TROP:

  1. Life cover – You get an excellent life cover when you buy term insurance in any form. Life insurance is a crucial requirement these days. Life has become unpredictable and health has become fragile. This is why every person needs to have a life cover. If anything happens to the breadwinner of the family, his loved ones will face a huge financial setback. To avoid this, the person should buy a term life cover to ensure even after his demise, his family members won’t suffer too much financially. The TROP plans help out in this respect.
  2. Economical purchase – Term insurance is a cheap form of life insurance. A term plan is much lower-priced than an endowment plan or a ULIP. This is mainly because the term plans offer just a pure life cover. The best term insurance plans with money back, even when offering a maturity benefit, are more reasonably priced than any other life insurance policy. Such a plan is thus a great option for those who want an inexpensive life cover and also want the invested money back at the end of the policy tenure.
  3. Tax benefits – All forms of life insurance offer tax benefits. You get a tax benefit of up to Rs 1.5 lacs if you buy a term insurance plan with a maturity benefit. The premium you pay will be deducted from your taxable income. This facility is available under Section 80 C.
  4. Maturity benefit – The biggest and most distinguishing benefit of buying a TROP is the maturity benefit you get. As mentioned above, the usual term insurance plans do not offer a maturity benefit. But the case is very different for a TROP. here, when you outlive the policy period, you get the premium you paid over the years, back. Many participating plans also add the accumulated dividends to this amount, making it a profitable return for you.

Keeping these benefits in mind, you can understand just how handy and useful the best term insurance plan with money back is. Look for your ideal cover and stay secured.

The best term insurance plan with money back

Here is a list of the best term insurance plans with money back in India:

  1. Tata AIA Life Insurance i-Raksha TROP
  2. Max Life Premium Return Protection Plan
  3. MetLife Suraksha TROP
  4. Aviva iShield Plan

All these plans are good options for those who are looking for the best term insurance plan with money back. Go over the features, match them with your requirements and get the plan that you feel would suit you well.

The final word

Look for the best term insurance plan with money back and get the cover without any further adieu. Just remember that a TROP may have a higher premium than a regular term insurance policy as the maturity benefit is an added feature. Compare the various plans and see which is the most suitable option for you. Buy the plan and stay protected in a wholesome manner.

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