Buy a term plan and secure your family
Well, the main reason for which people used to opt for traditional life insurance policies is that they get some returns either periodically or at maturity based on the type of the policy they have opted for. But now, many insurance companies offer term plan with return of premium. This type of insurance policy offer a return of the premiums paid at the end of the term. Well, this benefit of term plan with return of premium may attract many people to turn to such type of life insurance policy because term plans are cheaper when compared to other type of life insurance policies. Plus, you will be getting maturity benefits. So, would it a great decision to buy such type of policy? Let’s check it out in this article.
Term plan with return of premium (TROP) is basically another form of a term plan that is mainly designed to meet the insurance requirement of policy seekers. Just like traditional term plan, TROP also offers financial protection to the beneficiaries of the insured in an unforeseen event of his/her demise.
However, there is one distinctive feature of TROP that makes it different from the ordinary term insurance plan. And it is that term plan with return of premium provides the benefit of the return of premium as the survival benefit to the policyholder if in case he/she outlives the tenure of the insurance policy.
As a policy seeker, you can decide the duration or term according to your financial stability. Usually, TROP is available for 20, 25, 30, and 40 years. Let’s just say, you decided to opt for a 25 year term insurance plan if you have a 25 years loan to repay and god forbid if something happens to you during the tenure of the term insurance policy, you would not have to worry about the repayment of the loan. And if you outlive the tenure of the policy, you will certainly get back 100 percent of the premium invested as a maturity or survival benefits.
For the customer’s convenience, majority of the leading life insurance companies have now introduced several premium payment plans which offer amazing flexibility of paying premium for the insurance policy. You can select a suitable option for making payment as per your financial stability.
The usual premium options for making payment are monthly, quarterly, half-yearly, and annually. In fact, few insurance companies provide the option of a single option for making premium payment where insured is required to pay for the entire term insurance plan in just one go.
Term insurance plan with return of premium has a plenty of benefits and some of them are given below:
Every one of us wants to lead a happy and healthy lifestyle in the presence of our near and dear ones. In order to prolong our life span, we make healthy lifestyle choices and follow an apt diet plan. In addition to this, we invest in different financial instruments that do not only give us financial protection but also wealth creation opportunities so that we have not go through financial stress.
Therefore, there are chances that if we follow healthy life style and stay happy, we can outlive the life insurance policy. So, TROP (term insurance plan with return of premium) comes with an additional benefit since it offers the return of premiums to the policyholder if he/she outlives the tenure of the policy.
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Now, let’s have a look at the key reasons why should you opt for TROP:
On the basis of aforementioned information, we can say that term insurance plan with return of premium is worth buying. Since it offers the insurance coverage as a death benefit along with the advantage of the return of premium as maturity benefit if in case the policyholder outlives the entire policy tenure. Also, it is cheaper than other life insurance policies so everyone can afford it easily.