8+ years of experience in Life Insurance with expertise in Developing Life and Health Products, Digital Sales, Conducting effective training, and Key Account Management.
For most of us, ideal life is where we get to live out our days in the presence of our family and friends, doing things which we like. We make healthier lifestyle choices to prolong our lifespan and make sure that we are there to watch our loved ones live out their dreams and accomplish their goals in life.
Moreover, we take every possible step to support our family, emotionally and financially. We invest in financial instruments that provide us both wealth creation opportunities and income security so that our loved ones do not have to depend on anyone else for support.
While mutual funds and ULIPs provide substantial capital appreciation, there are other options such as term insurance plan with TROP (Term plan with Return of Premium) benefit (available on payment of additional premium) that enable us to secure the dreams of our loved ones financially, in case of an eventuality.
Term plans with ROP benefit, while offering a return of annualized premiums* as survival benefit, also provide additional benefit on payment of additional premium such as waiver of premium benefit, disability benefit, accidental death benefit, and protection against critical illnesses. Let take a closer look at the various aspects of term plans with return of premium that make them worth buying.
1. Offers Refund of Premium* Upon Surviving the Policy term
As the name suggests, the term plan with return of premium is different from traditional term plans, as it provides to the amount of annualized premium paid throughout the policy term. Thus, in case of your untimely demise within the policy tenure, your family will receive the full sum assured under the insurance plan.
However, if nothing happens to you, and you are able to outlive the term insurance period, you will receive the amount of premium* paid you had paid under the plan as premium. In other words, you can avail both policy and survival benefits under the Plan.
2. Coverage Against Life-Threatening Illnesses
The Max Life Smart Term Plan (UIN: 104N113V03; Non Linked Non Participating Individual Pure Risk Premium Life Insurance Plan) from Max Life Insurance offers an Accelerated Critical Illness (ACI) benefit, which provides financial assistance for you, in case you are diagnosed with a life-threatening condition such as cancer or kidney failure. The ACI offers immediate lump sum payouts (from your policy coverage) to help you secure the best possible treatment available, against as many as 40 health conditions.
Also, you can increase your critical illness coverage, during the policy tenure so that your cover stays relevant to your age and market inflation.
3. Option to Increase Coverage According to Life Stage
Your needs and aspirations continue to grow throughout your life. Therefore, you need a life insurance plan that evolves with you and your needs. This is where a term insurance plan with ROP(return of premium ) benefit available on payment of additional premium come into the picture. The plan gives you the option to increase your life cover in the future, as and when important events such as marriage, or the birth of your child, occur in your life (on payment of additional premium). At the time of policy purchase, you can choose whether you wish to opt for an increase of cover later in life. Thus, you can be sure that your term insurance cover remains comprehensive enough to support your family during crucial moments of their lives
4. Benefits Under MWPA
As per Section 6 of the Married Women's Property Act (or MWPA), 1874, if a married individual purchases the TROP insurance plan, for himself and endorses it under MWPA (nominating his spouse and children as beneficiary), no other person (such as parents, friends or relatives of the insured person) will have any right to the term insurance plan benefits.
Moreover, the insured person himself, will also not have any claim to the benefits of the term policy upon surviving the plan term. Instead, by endorsing your term insurance plan under MWPA, you can entitle your wife and children to both the insurance cover payout (in case of your untimely death) and the survival benefits (as a refund of premiums, in case you survive the policy term.)
Make the Most of Life with a term plan with ROP benefit
At the time of making investments, most of us look for options that can deliver a substantial return on investment (ROI). There is nothing wrong in doing so since we want to maximize our savings while using them to create wealth.
As investors; however, we must understand that the factor of investment returns should not be the only criteria to opt for a particular investment tool. Instead, you must look for plans that provide wholesome benefits, protecting and securing multiple aspects of your life. Take term insurance plans with ROP benefit (available on payment of additional premium), for example.
These term insurance plans not only secure your loved ones financially against an eventuality but also offer to provide financial assistance to your family in your absence.