With a Term Life Insurance (TLI) policy, you're covered for the duration of the policy, which could be around 10 to 30 years. It gives your beneficiaries a payout if you pass away during the term of your policy. Here, premium payments are low because the coverage your policy offers is for a short time. One of the disadvantages of a term policy is that it doesn't give you your money back if you outlive your term. However, a Return of Premium (ROP) Rider is a good idea if you want your money back from the premiums paid for a Term insurance policy. In this article, we explore what a Return of Premium Rider is and how it works
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Talking about term plans, the ACKO Life Flexi Term Plan distinguishes itself through its remarkable flexibility, affordability, and simplicity. It provides comprehensive protection at reasonable rates and guarantees peace of mind for policyholders. This unique term plan facilitates effortless coverage adjustment to suit different life stages and financial situations. Some of the key benefits:
| Adaptable Policy Tenure | Cost-Effective Premiums |
| Flexibility in Sum Assured | Will Creation Services |
| Easy and Simple | Adaptable Payout Options |
| Digitally-Driven | Essential Riders |
While the Return of Premium Rider is a solo rider, these 8 popular riders can be paired with a life insurance policy.
| Accidental Death Benefit Rider | Waiver of Premium Rider |
| Accelerated Death Benefit Rider | Guaranteed Insurability Rider |
| Child Term Rider | Spouse Term Rider |
| Critical Illness Rider | Long-Term Care Rider |
This rider provides financial assistance in the event of the insured's unexpected death. The guaranteed rider amount is paid as a lump payment to the policyholder's family if the policyholder dies due to an accident or tragedy during the rider's term. The benefit handed out exceeds the sum provided by the basic plan.
In an accident resulting in permanent partial or total disability, the accidental disability rider provides a payout. This amount aids in covering treatment expenses and daily living costs. The payout is determined following the insurer's regulations concerning the severity of the injury or disability.
This critical illness rider safeguards the policyholder from financial issues by providing coverage for a predefined set of critical illnesses or conditions. This exclusive plan covers 21 critical illnesses, including life-threatening common diseases among women, such as breast cancer, cervical cancer, fallopian cancer and ovarian cancer.
Check out the list of critical Illnesses covered.
Several factors impact the Return of Premium (ROP) life insurance contracts, including premiums, terms, and benefits. These factors include:
The insured's age and health considerably influence ROP insurance rates. Younger and healthier people often pay lower rates because they offer insurers fewer mortality risks.
The level of coverage chosen for the ROP insurance influences rates. Higher coverage amounts result in higher rates because insurers assume more financial obligations.
The length of the insurance term affects premiums. Longer periods often result in higher rates since they increase the period during which the insurer is required to refund premiums.
Statistical figures illustrate that life expectancies vary by gender, resulting in different premium rates.
Certain occupations and high-risk lifestyles may result in higher premiums due to greater mortality risk.
ACKO’s term insurance calculator helps customers find suitable coverage that matches their monetary objectives. The tool provides an easy way to find and customise term insurance options, including finding the best term insurance plan for 1 crore. The calculator helps you determine the amount of coverage you need and the premium you’ll need to pay based on various factors. Some of them include age, gender, coverage amount, policy term, health status, smoking status etc. Buy life insurance policies online for a quick and hassle-free process.
Below are some of the frequently asked questions on Return of Premium (ROP) Rider
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.
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Reviewed by Vaibhav Kumar Kaushik 
Acko Technology & Services Private Limited
#36/5, Hustlehub One East, Somasandrapalya, 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102
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