TROP stands for Term Insurance with Return of Premium. It is a type of term life insurance plan that refunds the total premiums paid to the policyholder if they survive the policy term. This article explains what influences the cost of Term Insurance with Return of Premium. It also covers how premium rates vary and how to compare affordable options to choose the best term insurance plan with return of premium.
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A term insurance with return of premium policy provides life cover and a maturity benefit. It works like a standard term plan. However, unlike regular term insurance, where no payout is made if the insured survives the term, TROP ensures that if the policyholder outlives the policy term, all premiums paid (excluding GST) are returned.
In simple terms, TROP provides financial protection to your family in case of an untimely death. But if you live through the entire duration of the policy and no death claim is made, the insurer will return all the premiums you paid.
Let’s take a look at the pricing comparison to understand the extra you pay for TROP:
A 30-year-old non-smoker can get ₹1 crore coverage for around ₹11,000 per year. Explore the ACKO Life flexi Term Plan now.
The same individual may have to pay ₹27,000 per year to get their premiums refunded after 30 years.
Return of Premium (TROP) term insurance plans are designed to refund the premiums paid at maturity. However, these plans come with higher premiums, and the refund is the amount you paid as premiums, returned without any growth or interest.
ACKO Life focuses on keeping things simple and clear. Instead of TROP, the ACKO Life Flexi Term Plan offers:
This way, you get more value for your money and the right protection for your family.
There are various cost factors that determine your term plan with return of premium, which include the following:
The younger you are, the lower the premiums you will be required to pay. Age is regarded as one of the main determinants of pricing when considering the purchase of a life insurance plan.
Having a higher coverage means you will pay higher premiums. For instance, a ₹ 1 crore sum assured plan would cost you more than a ₹ 50 lakh plan.
Term insurance premiums increase with the length of the policy term. It is simply because the insurer is taking on risk for a longer period. For example, a 30-year term will generally cost more than a 10-year term, assuming the same sum assured and age at entry
Your medical history and lifestyle choices, such as smoking or alcohol intake, will directly affect your premium
Adding riders, such as critical illness and accidental death benefits, will increase your premium. They are usually optional, but they add great value.
If you have a risky job or engage in high-risk hobbies, your premiums will be higher
While choosing the best term plan, keep in mind:
Choose insurers with a claim settlement ratio (CSR) above 95%.
Check for monthly, quarterly, and annual options for payments.
Based on your needs, choose plans with riders, such as return of premium, critical illness, waiver of premium, etc.
Choose an insurer that has a strong financial standing.
Verify that the policy has a free-look period during which you can review the terms and cancel at no extra cost. Also, check the grace period for premium payments to avoid accidental policy lapses.
Term life insurance plans cover you for a fixed sum and a fixed number of years. The ACKO Life Flexi Term Plan offers the same protection but with more flexibility. It lets you change your coverage amount and policy term as your life stage, responsibilities, and financial needs change.
You can confidently choose ACKO’s term plan as reliable financial protection for your family.
| Feature | ACKO Advantage | Traditional Plans |
| Claim Settlement Ratio | 99.38%* | Varies from 95-98% |
| Policy Adjustments | Instant changes via app | Often requires paperwork |
| Coverage Flexibility | Increase or decrease coverage anytime | Usually restricted to life events |
| Cost Efficiency | Up to 40% savings | Higher premiums |
| Premium Stability | Age-wise premiums remain fixed | May increase with inflation |
| Digital Experience | 100% online process | Often requires offline steps |
| Free Will Creation | Yes | Generally not offered |
When you buy a term insurance plan, adding riders (extra coverage options) can give more protection against unexpected life challenges. The ACKO Life Flexi Term Plan offers three important riders to strengthen your family’s financial security:
If the policyholder passes away due to an accident, this rider provides an extra payout to the family. This is in addition to the base sum assured of the term plan.
If an accident leads to a major permanent disability, this rider offers additional financial support. It helps the family manage living expenses and maintain financial stability during difficult times.
This rider provides coverage for 21 serious illnesses. If diagnosed with any of the listed illnesses, the rider benefit helps ensure financial protection is available for treatment and family support.
Here is the complete list of covered critical illnesses.
✔️ Cancer of Specified Severity
✔️ Myocardial Infarction (First Heart Attack Of Specific Severity)
✔️ Open Chest CABG
✔️ Open Heart Replacement Or Repair Of Heart Valves
✔️ Coma Of Specified Severity
✔️ Kidney Failure Requiring Regular Dialysis
✔️ Stroke Resulting In Permanent Symptoms
✔️Major Organ /Bone Marrow Transplant
✔️ Permanent Paralysis Of Limbs
✔️ Motor Neuron Disease With Permanent Symptoms
✔️ Multiple Sclerosis With Persisting Symptoms
✔️ Benign Brain Tumor
✔️ Blindness
✔️ Deafness
✔️ End Stage Lung Failure
✔️ End Stage Liver Failure
✔️ Loss Of Speech
✔️ Loss Of Limbs
✔️ Major Head Trauma
✔️ Primary (Idiopathic) Pulmonary Hypertension
✔️Third Degree Burns
A term insurance with return of premium (TROP) is more expensive than a regular term plan, but it is a suitable option for those looking for life coverage and a guaranteed return at maturity. Always consider your age, need for coverage, and pricing of various insurers before choosing your best term insurance plan.
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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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