When only one family member earns money, every rupee counts. In this case, Term Insurance with Return of Premium (TROP) is a great choice since it provides both financial protection as well as a promise to get your premium back. This provides comfort knowing that you are the only breadwinner and your loved ones will be financially secure even if something happens to you. This article explains how Single Income Household TROP Insurance works, who should consider a TROP insurance, how TROP benefits your family, and what to keep in mind before purchasing a TROP insurance.
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Term Insurance with Return of Premium for Single Earners
TROP stands for Term Insurance with Return of Premium. Like traditional term insurance, you have life cover. If something happens to you within the term, your family receives a large sum of money, also called the sum assured.
But here's the difference.
With TROP,
In a single income household, there is generally one person responsible for the family finances - paying bills, saving for the future, supporting family needs. If that one person is no longer around, the household will face significant financial instability.
Here's how TROP helps in this situation:
The main goal of any term insurance is to protect your loved ones. TROP does this by giving the sum assured if the insured person passes away during the policy period. This money can cover:
In TROP, if you survive the policy term, you don’t lose your money. You get back every premium you paid. This is helpful for single earners who are cautious about spending on things that offer no return.
Unlike market-linked investments, a TROP policy is low-risk. You know what you’re getting and when. This gives mental peace, which is very important when you're managing money for the whole family.
Let’s say Anuj, 35 years old, is the only earning member in his family. He buys a TROP plan with ₹50 lakh sum assured for a 25-year term. He pays ₹18,000 annually.
That money can be used for retirement, children’s education, or any future goal.
TROP is ideal for individuals who want life coverage with the added reassurance of getting their money back. It could be:
Before you buy a Term Insurance with Return of Premium (TROP) plan, it is important to keep certain things in mind.
Yes, TROP insurance policies are generally more expensive than standard term insurance policies. But you’re also getting your premiums back. So, if your budget permits, then these are worth exploring.
The sooner you start, the better rate you are going to get, which means the more you save in the long run. The younger you are, the cheaper the premiums are going to be. Always choose a tenure that covers you until you don't have any major financial commitments (e.g. until your child is well settled, your loan is over, etc.)
You should always verify the Claim Settlement Ratio (CSR) of the insurer. A CSR of over 95% is an indication that the insurer has a strong track record of honouring claims and can be considered reliable in times of need.
Another consideration is whether or not riders (add-ons) are available that might make your policy better. For example:
- Critical Illness Cover
- Accidental Death Benefit
- Disability Income Rider
You get a comprehensive policy by including appropriate optional riders by paying additional premiums.
Here are the key advantages that make TROP a smart choice for your needs.
| Feature | TROP for Single Earners |
| Life Cover | Yes |
| Premium Refund if You Survive | Yes (at the end of policy term) |
| Tax Benefits | Yes (Under Section 80C & 10(10D)) |
| Peace of Mind | High |
| Ideal for | Sole breadwinners and family planners |
In a single income household, one person’s income keeps everything running. A TROP insurance plan makes sure that even if life takes an unexpected turn, your family will still be financially protected, and if everything goes fine, you get your money back. It’s more than just a policy. TROP is ideal for those who carry their family’s future on their shoulders.
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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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