Term insurance is a perfect way to provide financial protection to your family in case of your unfortunate demise. It is a type of life insurance which offers a low-cost and affordable pure term life coverage. However, these plans do not offer any returns at maturity i.e in case the policyholder survives during the policy tenure. That being said, term plans with maturity benefits provide a workable solution for people who also want a maturity value on their policy. These plans are known as TROP (Term Plans with Return of Premium option) plans

TROP Plans - This is indeed a variation of life insurance popularly known as TROP or term insurance with return of premium. In this plan, the policyholder is paid maturity benefits of an amount equivalent to all the premiums paid till the end of the policy term. This benefit is applicable in the case when the policyholder survives till the end of the policy term. Just like a pure term plan, the policy also offers a basic sum assured in case of unfortunate death of the life assured during the policy term. This way the policyholders get an additional feature relative to a pure term plan. For offering this type of policy, the insurers generally charge a higher premium amount than a typical term plan. This policy has been popular among individuals for their life insurance needs and is offered by many insurance companies in India. The policy comes with slightly different features from different insurers and the individual can choose the policy which is suitable as per their needs & requirements.

Advantages of TROP Plans

Following are some of the advantages of term plans with return of purchase price: 

• Death Benefit: Term insurance policies offer death benefits in case of unfortunate death of the policyholder during the policy term. The death benefits are equivalent to an amount called "Basic Sum Assured" which is specified at the time of purchase of policy.
• Maturity Benefits: TROP plans unlike pure term plans offer maturity benefits to the policyholder in case he/she survives during the policy term. The maturity benefit is payable at the amount equivalent to all the premium payments made till the expiry of the policy.
• Additional Riders: Optional riders are offered to policyholders in addition to their basic plans. Along with the TROP plan, the insurers also offer a facility to add optional riders to increase the coverage of the policy. This rider is like an add-on to the basic plan and the policyholder would have to pay an additional premium along with the premium for the basic plan to activate the rider. However, the riders do not offer any maturity benefits.
• Affordable:  While the TROP policies are generally more expensive than pure term plans, still their costs are lower than other life insurance plans like whole life insurance, endowment plans, etc. So, this presents an affordable option to individuals for getting their life insurance policy.
• Flexibility: The TROP or other life insurance policies offer high flexibility to individuals for choosing their policy term i.e for 5,10,15,20 years etc. as per their requirements. Also, the sum assured coverage can be chosen as per the individual's family needs.
• Tax Benefits: Just like other life term policies, the premiums paid for TROP policies are eligible for claiming tax deductions. The deductions of up to Rs.1.5 lakhs can be claimed in a financial year under Section 80C of the Income Tax Act,1961.

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