While making a decision about securing your family’s future, there's one financial tool to consider: Term Insurance. But what if you could combine this financial protection with the added benefit of getting some of your money back? That’s where Return of Premium Term Insurance (ROP) comes in. It is especially valuable for families who are looking to balance protection with peace of mind.
Life Cover Starting @ just ₹18/day*
Change Your Policy Term
As per your life stage and commitments
Hassle-Free Claim Settlement
99.38% Claim settlement ratio*
Smart Income Tax Savings
Save up to ₹54,600* on your taxes
Families & Return of Premium Term Insurance
Return of Premium (ROP) in Term Insurance is a feature where the insurance company returns all the premiums you paid if you outlive the policy period. It’s like getting your money back at the end of the policy. This means whether something unfortunate happens or not, your family is protected either way. It performs two key functions:
Let's say Priya and Rohan, both in their early 30s, have two young kids. Rohan, the breadwinner or sole earner of the family, decides to go for a ₹1 crore Return of Premium Term plan for 30 years. He pays about ₹25,000 annually. In case something happens to Rohan during this time, his wife Priya receives the full sum assured. But if Rohan lives through or survives the policy period, the family gets ₹7,50,000 back, money they can use for their kids’ higher education or to support retirement needs.
Every family has unique financial needs and responsibilities. Unlike traditional term plans that only offer essential protection, Return of Premium term insurance adds that extra layer of value by refunding your premiums if you outlive the policy.
Here are the types of families that stand to benefit most from choosing return of premium term plans based on lifestyle, income patterns, and long-term goals.
For couples who have just begun their financial journey, it provides essential life cover during key milestones like having children or buying a home, while also offering a premium refund at the end of the term. This gives them peace of mind knowing they’re protected and that their money isn’t lost if the policy goes unused.
With families that are dependent on the breadwinner’s income, the sudden loss of that person can derail everything, from their daily expenses to long-term goals. An ROP term plan ensures financial protection for loved ones, and if nothing happens, the premiums are returned.
For parents managing major goals like education, home loans, or retirement, ROP term insurance offers double value. First, it protects your family, and second, it refunds premiums if the policy is not used. This money can go towards your future needs, making it a smart, goal-aligned safety net.
Some families will avoid buying term plans that don’t offer anything back because it feels like an investment with no returns if the policy is unused. ROP plans address and ease that concern by offering full protection along with a refund of premiums, giving cautious spenders peace of mind and a sense of value.
Families often plan with dual goals in mind: protection and financial return. Traditional Term Plans offer pure protection, which is important, but some people might hesitate because they get “nothing” in return if the policyholder survives the policy period. Return of Premium plans help overcome that hesitation.
In case of your unfortunate demise, your family gets the policy benefits. And in case you outlive the policy term, you still get your premiums back. Either way, your family is protected, and your money (premiums paid) comes back to you.
The promise of getting your premiums back makes it easier to stick with long-term coverage. That’s especially important when you have kids or other dependents who’ll count on your support for years to come.
For families that struggle with disciplined savings, ROP plans can act like a long-term savings commitment with a life cover bonus.
It removes the “what if nothing happens?” doubt many families have when considering term insurance.
Premiums are eligible for deductions under Section 80C, and the maturity amount is usually tax-free under Section 10(10D) of the Income Tax Act, which is subject to certain conditions.
ROP term plans usually cost 1.5 - 3 times more than regular term insurance, which can be challenging for families on a tight budget.
Since you only get back what you paid, there is no interest or investment growth. It’s not a wealth-building tool like mutual funds or ULIPs.
If you miss any payments and your policy lapses, your family could lose both the protection and the return benefit.
The extra amount that you pay for ROP could potentially earn more if it’s invested elsewhere. For example, a family could buy a cheaper term plan and invest the difference.
Whether to purchase Return of Premium Term Insurance or not can be a complicated decision to make. Here are a few important things to consider while making that decision:
| Point to Consider | Why it Matters |
| Cost | Since ROP premiums are higher, you need to make sure they fit within your family’s budget. |
| Long-term commitment | If you miss a payment and the policy lapses, you might lose out on the return benefit. |
| No interest on returns | You don't get any interest or bonuses. You only get back what you paid as a premium. |
| Not ideal for late starters | If you're starting coverage at an older age, premiums can be disproportionately high. |
For families, insurance isn’t just about covering risks; it’s about planning smartly for their future. Return of Premium Term Insurance may cost more than regular term plans, but for many families, the comfort of getting premiums back at the end is worth it. If you’re a parent, spouse, or sole breadwinner looking for insurance that supports your family and gives you a sense of value, then Return of Premium Term Insurance is something definitely worth considering.
1.7K Linkedin Followers 
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
Products 
Company
Legal
Support
Car Insurance 
Bike Insurance
Health Insurance
Group Health Insurance
Travel Insurance
Life Insurance
