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Ultimate Guide on Term Plan with Return of Premium

Term Insurance

One of the popular plans that interest people is the term plan which is of various type. In this blog, we are going to introduce one of the best term plans for you. We are talking about Term Plan with Return of Premium that offers outstanding benefits. So, we will guide you if you don’t know much about this term plan. Let’s begin.

Introduction to Term Plan with Return of Premium

A term plan with return of premium is similar to other term plans but the basic point of difference among them is the maturity benefit. This term plan offers life cover and provides death benefits. Also, you become eligible for a return of premium at maturity if you invest in this term plan.

You have the option to choose the sum assured, the policy period, and the premium amount payment schedule. The insurer will return your premium when the policy matures.

To cater to the needs of people who are looking for life protection, this plan is introduced by insurers. If the policyholder gets demised, the nominee will get the sum assured. But the policyholder will receive the premium at the time of maturity if he survives the policy term.

Features of Term Plan with Return of Premiums

Some of the features of the Term plan with Return of Premiums that will help you distinguish it from other term plans are mentioned below :

  • The policy term of this term plan ranges from 5-35 years.
  • The entry age of the policy can differ depending on the maturity age and policy term.
  • The plan provides complete protection.
  • The age of maturity can be 75 years.
  • You can pay premiums annually, quarterly, half-yearly, or monthly.
  • No limit on the sum assured.
  • Have 30 days free look period
  • Have a 30 days grace period for payment of premium.

Benefits of Term Plan with Return of Premium

Maturity Benefits

The term plan with a return of premium offers a benefit of 100% premium return at maturity.

Death benefits

The term plan offers death benefits according to which the nominee is paid a complete sum assured as death benefit after the unfortunate demise of the insured person.

Tax Benefits

Under section 80C of the Income Tax Act, the premiums that policyholders pay for such policies can be used to avail tax benefits. However, tax laws are subject to change from time to time.


Insurers may offer few riders such as accidental or critical illness riders to policyholders. However, riders are not mandatory and are available at an additional cost.

Reasons to Invest in a Term Plan with Return of Premium

You might be wondering why you should invest in this term plan with return of premium. So, here are a few reasons to convince you for this investment.

Maturity return that other term plans don’t offer

You will get a premium refund at maturity if the policyholder survives the term plan. This benefit is not offered in any other term plan; therefore, it is the best term plan for you in case you are looking for dual benefits and can pay a little high premium.

Assured returns

This term plan offers assured returns on the total premium paid. This implies that the policyholder will get the money back in any case.

Options on premium payment

Policyholders get different options for premium payment- monthly, half-yearly, quarterly, and yearly. So, the person doesn’t need to worry about the payment and can choose the best payment option accordingly.

How to decide The Best Life Insurance Plan with Return of Premium?

Let’s move ahead to know how you can choose the best term insurance plan with return of premium. Some factors to consider are :

  • Check if the cover amount is sufficient to provide financial security to your family in your absence.
  • Only go for the term plan if the premium payment is affordable.
  • Make sure that the claim settlement ratio of the insurer is good.
  • The plan should offer the facility of quarterly, yearly, and monthly premium payment choices.


Life coverage is important to ensure that your family is protected even when you are not there. But it is also important to get some return from your investment if you survive the term plan. So, the term plan with a return of premium is one of the best insurance plans you can consider. In this, you will gain in both cases. Don’t forget to invest and secure your family’s future.


*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

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