Term Insurance with Return of Premium - Decoded

Term insurance with return of premium (TROP) is a type of term cover. It gives the policyholder a refund of premiums if they outlive the policy period. Basic term plans don’t give any sum on survival. However, TROP adds a savings-like part to pure life coverage. This option is ideal for those seeking to financially secure their families without losing on premiums if nothing unfortunate happens.read more

Written ByAashima MongiaContent Writer (Expertise: Term Life Insurance & Investment)

Reviewed ByAtul KathuriaBusiness Head – Term & Investment | Policybazaar.ae

Last updated on 12 August 2025Editorial Standards

Term cover with return of premium is a popular option around the world. However, keep in mind that it’s not available in the UAE. Here, you’ll find only standard term life plans.

Let’s find out more about this coverage and the possible alternatives in the UAE.

Best Term Insurance Plans in UAE

Some of the best Term Insurance quotes in UAE & Dubai are:

Policy Term

Age

Cover

Payment Frequency

YearlyMonthly

98.1% Claim Settlement Ratio

Term Life Protect

Life Cover (AED)1,000,000

Policy Term (Years)10

Passive War Cover
Pre Existing Disease Coverage
Medical Checkup Not Required
Worldwide Coverage

95% Claim Settlement Ratio

Term Life

Life Cover (AED)1,000,000

Policy Term (Years)10

Worldwide Coverage
Life Cover
Entry Age

98% Claim Settlement Ratio

International Term Assurance

Life Cover (AED)1,000,000

Policy Term (Years)10

Passive War Cover
Pre Existing Disease Coverage: Subject to Approval*
Medical Checkup Not Required
Worldwide Coverage
Critical Illness Cover

98% Claim Settlement Ratio

Live Life Now

Life Cover (AED)1,000,000

Policy Term (Years)10

Worldwide Coverage

98% Claim Settlement Ratio

Critical Illness Protection

Life Cover (AED)1,000,000

Policy Term (Years)10

Worldwide Coverage
Cancer Cover

Term Insurance Plan with Return of Premium (TROP)

In case of a simple term insurance policy, a premium is paid against which the insurer offers coverage to the policyholder. The death benefit is only paid to the nominees of the policy if the death of the policyholder occurs within the term of the plan. However, if the policyholder surpasses the term of the policy, no maturity benefit is paid.

Term plans with return of premium work quite similarly. The only difference is that there is a refund on outliving the policy tenure.

To understand TROP, let’s take an example.

Suppose you bought TROP worth AED 1,000,000, for a term of 30 with a premium of AED 1,200 per year. In case the policyholder passes away within the policy period (30 years), the nominees will get the death benefit i.e. AED 1,000,000. However, if the policyholder surpasses the policy period, at the end of the policy, they will get the premium paid. This will be 30 x 1,200, which is AED 36,000.

Note: The amount paid on outliving the policy comes with certain deductions.

Click to View Term Insurance Plans

Points to Consider When Purchasing Term Insurance Plans with Return of Premium

As mentioned earlier, you won’t find any term insurance with return of premium in UAE. However, even if you find coverage around the world, there are several important points to think about.

The payable premium for term insurance with return of premium is always higher than regular term plans. Thus, at the time of purchasing TROP, one should make sure that they fit their budget or not.
Term coverage with return of premium provides the option of riders. However, the money paid for riders is not returned at the maturity of the policy.
Don’t just purchase TROP by focusing only on the benefits paid on outliving the plan. Rather, look at the premiums, coverage amount, and other features.
Ideally, term plans are cheap and inexpensive but term insurance with return of premium is not.

Alternatives to Term Insurance with Return of Premium in UAE

Term insurance with return of premium is not available in the UAE. However, you can find many smart alternatives for the same. Let’s understand them better —

Get Term Coverage + Separate Investment Plan

You can find high term life coverage at affordable rates in the UAE. This can keep your family protected in unfortunate scenarios. Once you have this cover, find an investment plans in UAE. This can be a mutual fund, if you’re looking for high returns with some risk involved. For safer options, you can consider National Bonds, fixed deposits, and more.

While this approach requires you to get two different plans, it’s still quite easy. On Policybazaar.ae, you can get the best plans for both term insurance and investment. Simply choose the relevant option from the menu above.

Choose Life Insurance with a Savings Component

On our platform, you can also find life policies that combine life coverage and investment/savings. This saves you from the hassle of juggling multiple plans. Some of the top options under this category include endowment plans, whole life insurance, ULIPs, and more.

In a Nutshell

In order to safeguard your family in case of strokes of uncertainties, it is vital to get a term or life insurance plan. Even though the TROP option is not available in the UAE, you can still find various approaches. If you’re fine with handling multiple plans, go for separate term and investment policies. Otherwise, you can consider ULIPs, endowment plans, and more.