Buy a term plan and secure your family
With the economic growth, the income of the people has increased but the expenses have also become double. In addition to increased liabilities, it has become quite important for people to invest. That is where the term plan comes into the picture. A term plan is the only type of insurance policy that you should opt for because it offers wider coverage at the lowest premium cost.
Return of premium is one of the popular concepts under the term insurance plan. Embedded with all the major benefits of term insurance policy, this type of insurance policy provides all the premiums to the policyholder as a maturity benefit. This product is ideal for all those people who are looking for assured cash value while purchasing an insurance policy. What’s more? You can also choose the policy tenure that suits your specific requirements.
As a policyholder or investor, you can choose the duration or term of the policy as per your need and budget. Usually, the term insurance policy is available for 10, 20, 30, and 40 years. For example, you can buy a 10 years term insurance plan. If you have a 10-year long loan to pay off but something worse happens to you within the tenure of the policy, you won’t have to worry about the loan repayment. And if case you survive the term, you will get back 100 percent of your premium that you have invested as a maturity benefit.
Traditionally, a term plan offers a death benefit and it doesn’t provide the survival or maturity benefits whereas term plan with return of premium offers the survival benefits. Due to the guaranteed premium back feature, this type of insurance policy is slightly inexpensive when compared to a term insurance plan.
For the convenience of the customers, insurance companies have introduced several premium payment plans. You can select any of the payment options that suit your financial situation the most. The standard premium payment options that are available in the UAE are quarterly, monthly, half-yearly, and, annually. In fact, some of the insurance companies offer single premium payment plans wherein you can pay the premium all in one go for the entire term.
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There are a few customers who expect to avail adequate returns from an insurance plan. Keeping this thing in mind, some of the insurance companies offer Term Insurance Plan with Return of Premium (TROP) plans. This type of term insurance policies come with dual benefits. First of all, they ensure you absolute peace of mind by offering financial stability to the loved ones if in case something happens to you. Secondly, this type of term plan offers the guaranteed premium return to the policyholder if he/she outlives the term. Meaning that, total premiums paid during the policy tenure are paid back to the insured as a survival or maturity benefit.
When compared to other life insurance plans such as endowment or ULIP plans, a term plan with a return of premium is more reliable because it comes with dual benefits. Apart from offering the death benefits to the beneficiary(s), it offers the return of premium payment at the end of the policy tenure upon the survival of the policyholder.