Why Should You Choose MAX LIFE INSURANCE

Best Term Plan Company of the year*^*
99.22%**^ Claims Paid Ratio
IRDAI Registered Reg. No. 104

Term Plan with Return of Premium

Term insurance with ROP feature (available on payment of additional premium) also offers benefits such as waiver of premium benefit, accidental death benefit, disability benefit, and protection against critical illnesses.

Buy Max Life Term Plan With Return of Premium - Max Life Insurance
1
If you are single You have your parents who may depend on you for financial support, especially after their retirement. With a term plan with ROP benefit; therefore, you can help take care of their lifestyle expenses, while you get premium back on your term plan upon surviving the policy tenure.
2
If you are married with no kids Your spouse may have no one else to look up to for financial support, but you. Therefore, it becomes crucial that you create a financial backup plan to help secure their future in your absence. Even in case nothing happens to you, you will receive the premium back paid under the term plan with return of premium.
3
If you are married and have kids Being a parent, you have the responsibility to take care of your kids’ education and marriage expenses. You are also responsible for your spouse’s financial well-being. A term plan with return of premium optional benefit will help you support your family in maintaining their current lifestyle while offering you a maturity benefit on surviving the policy tenure.
Benefits of Return of Premium Plan - Max Life Insurance

Why Should You Choose A Term Plan With Return Of Premium Option?

All of us want to live a long and eventful life in the presence of our family and friends. To prolong our lifespan and live a healthy life, we make healthier lifestyle choices such as exercising daily and following a wholesome diet plan. We also invest in financial instruments that provide us both income security and wealth creation opportunities, so that we have enough money throughout our lifetime.

Thus, there is ample possibility that if we stay happy, positive, healthy, and away from stress, we can outlive our life insurance plan. So, term insurance with ROP optional benefit comes as an advantage, as it offers to return the premiums to you on your successful survival against the uncertainties of life.

Term insurance with ROP feature (available on payment of additional premium) also offers benefits such as waiver of premium benefit, accidental death benefit, disability benefit, and protection against critical illnesses.

At Max Life Insurance, we strongly believe in the idea that all our customers should stay happy and healthy and live longer. With our TROP variant of life insurance; therefore, we help ensure that you and your family have peace of mind and financial security in all walks of life. 

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Return of Premium Option with Limited Pay

Single Pay You pay the entire premium amount payable as a lump sum in one go
Regular Pay You pay the premium amount throughout the term plan tenure either annually, half-yearly, quarterly or monthly
Pay Till 60 You pay the premium till the age of 60 years while the plan coverage extends up to 85 years of age
Limited Pay You pay the premium for a fixed number of instalments, i.e., 5 Pay, 10 Pay, 12 Pay or 15 Pay
What is Trop - Max Life Insurance

What Is Term Plan With Return of Premium?

TROP refers to Term plan with Return of Premium option. This plan is same as any other standard term insurance plan with one difference of return of premiums option available i.e. survival benefit at the end of the policy term. The primary objective of any life insurance policy is to provide financial protection to your family in case of any unfortunate event in your life.

The primary objective of any life insurance policy is to provide financial protection to your family in case of any unfortunate event in your life. Life insurance plans usually fall into two categories:

1. First in which you can grow your money along with a life cover, and

2. Second, which is meant to provide only financial protection to your family called term insurance plans.

In the case of term insurance plans, there will not be any return on investment (ROI). However, the premiums are also nominal. Term insurance plans primarily to fulfil our life insurance needs only by providing a significant amount of money to the nominee in case of the insured’s unfortunate demise.

Most, term insurance plans do not offer any survival or maturity benefit for the policyholder. However, a term insurance plan with return of premium assures the return of the premiums paid for the life cover if you survive the policy term**.

For instance, Mr. Gupta, a 25-year-old healthy non-smoker, bought a term insurance plan with a return of premium option for a Sum Assured of Rs 1 crore at a premium of Rs 13,900 p.a. (excluding GST) payable for the policy term of 30 years. In case of his demise within 30 years of buying the policy (i.e. the policy tenure), his nominee would receive the Sum Assured of Rs 1 crore.

However, if Mr. Gupta survives the policy term of 30 years; he will receive Rs. 417,000 (13,900 x 30) {Exclusive of taxes^}

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Nowadays, most people look for insurance plans that can provide a higher life cover at the lowest possible cost of the premium. Term plans fulfil this criterion. However, given the fact that there are no maturity benefits on the policy, many are discouraged from purchasing a term insurance plan.

This made life insurance companies introduce term insurance plans with return of premium (or ROP) additional benefits in them. In other words, a ROP (term insurance with return of premium optional benefit) is a variant of term insurance plans that provides both a death benefit (in case of an eventuality) and a maturity benefit by returning the premium invested**

Term insurance plan with ROP offers tax benefits as per the prevailing tax laws. Thus, the premium paid towards the policy and the benefit amount drawn is tax-free under Section 80C and 10(10D) respectively of the Income Tax Act, 1961.

Therefore, you can avail a tax deduction up to Rs. 1.5 lakh on the premium invested in the term plan with return of premium. Overall, if you are conservative policyholder, you can use the premium paid towards the term plan to reduce your tax liability considerably.

Among all the available life insurance options, term insurance plans provide the higher life cover at the lowest possible cost of the premium. You pay a premium for an amount you choose as the Sum Assured. You can either pay the premium in one go (Single Pay), throughout the policy tenure (Regular Pay option) or for a fixed duration (Limited Pay option). The same premium payment options are available under the term plan with ROP feature as well. However, you may have to pay a slightly higher premium under term plan with ROP option than a normal term insurance plan.

For instance, a healthy, 30-year old male can purchase a term insurance plan from Max Life for a Sum Assured of Rs 1 crore and a policy term of 40 years for approximately Rs. 12,100 (excluding GST), payable annually for 30 years (Pay till 60).

On the other hand, for the same person the term plan with ROP benefit for the same sum assured, policy term and premium payment term will cost Rs. 22,300 (excluding GST).

However, unlike a normal or basic term plan, the ROP variant of term insurance provides the entire premium** paid by the policyholder at the time of maturity.  Also, the premium paid towards the plan coverage is exempt from taxation under Section 80C under Income tax act of 1961.

The ROP variant of term insurance is available under Max Life Smart Term Plan (A Non-Linked Non Participating Individual Pure Risk Premium Life Insurance Plan (UIN - 104N113V03))

How can you get a term plan with return of premium option??

Finding the right term insurance plan with ROP benefit is an easy task if you keep the following factors in mind:

1. The cover amount must be enough to help secure your family’s financial future in case something happens to yo

2. The rate of premium should be affordable

3. The insurer’s claim settlement ratio (CSR) must be high (Max Life Insurance has a claims settlement ratio of 99.22% (Source: As per Annual Audited Financials, FY’ 19-20)

4. Choose between the mode of premium payment as per your comfort (you can either go for a one-time payment or opt for annual, half-yearly, quarterly or monthly payments)

Buying term insurance with ROP benefit from Max Life insurance company is quick and hassle-free. You can opt for the term plan with ROP variant while purchasing the Smart Term Plan. Here are a few hallmarks of our life insurance plans:

1. Multiple channels for a seamless buying experience

2. No bulky paperwork while buying or paying a premium for policies

3. Dedicated claim settlement officer to make the claim process effortless

4. Multiple premium payment channels, including net banking, digital wallet, credit cards, and debit cards

According to the Section 6 of the Married Women's Property Act (or MWPA), 1874, if a married person purchases any insurance policy, on his own life and endorses it under MWPA (in favour of his spouse and children), no other person (insured’s parents, friends or relatives) will have any right to the insurance plan benefits.

The insured himself will also not have any claim to the survival benefits of the policy if he survives the plan term. Overall, if you choose to purchase a term plan with TROP benefit and endorse it under MWPA, making your wife or children the beneficiaries, you will entitle them to both the sum assured (in case of your death) and the survival benefits/refund of premiums (in case you survive the policy term).

When you purchase a term plan with return of premium option and decide to discontinue paying the premium under the plan or surrenders the policy, you will receive a Surrender Value of the policy.

The surrender value of the TROP plan is subject to the below-mentioned criteria:

a. Single Premium variant: After payment of single premium.

b. Limited Pay variant and Regular Pay variant: On payment of two full years’ premium

The surrender value is the higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV). The Special Surrender Value is equal to the Guaranteed Surrender Value under this variant.

Guaranteed Surrender Value is defined as:

GSV factor x (Total premiums paid plus underwriting extra premiums, if any, for base policy)

‘Total premiums paid plus underwriting extra premiums, if any, for base policy’ refers to the total of all annualised premium paid plus underwriting extra premium, if any, under the policy including premiums for Life Stage Add on Sum Assured (if any).

The GSV Factors are provided below:

Policy Year

% of Total Annualised Premiums plus underwriting extra premiums, if any, paid

Single Pay variant

Limited and Regular Pay variant

1

75%

NIL

2

75%

30%

3

75%

35%

4

90%

50%

5

90%

52%

6

90%

54%

7

90%

56%

8 +

90%

Graduating linearly from 56% to 90% during the last two policy years

Minimum (56% + [(34% x (N-7)) /(Policy Term - 8)], 90%)

N : Year of Surrender

Applicable for all variants

i. Surrender Benefit (or Early Exit Value) is only applicable for base death benefit cover and not on add-on options such as Accelerated Critical Illness Benefit option or Accident Cover option.

ii. Surrender Benefit (or Early Exit Value) will be payable only after the policy has acquired a Surrender Value (or Early Exit Value)

FAQs

FAQs

✅  Are the term plans with return of premium option worth it?

Compared to traditional term insurance plans, a Term with Return of Premium option (or TROP) offers to pay back the total amount of annualised premium {Exclusive of taxes^}, upon maturity of the coverage period. This is the most obvious pro of the TROP feature. The fact that you get your money back if you survive the policy tenure makes the return of premium plans is especially appealing to people who want insurance coverage but have a low-risk tolerance.

Moreover, you can also avail of a host of other policy benefits such as protection against accidental death and dismemberment, critical illnesses, and tax benefits (both deductions and exemptions). Thus, the term plans with return of premium option are definitely worth their price. 

✅  What is the return of premium in term life insurance?

Pure term insurance plans provide significant financial support to your grieving family, should anything happen to you. But these plans do not offer any maturity benefits, i.e., if you were to outlive the term insurance coverage period, you do not receive anything on policy maturity.

Term life insurance plans with Return of Premium (or TROP) pays back the total amount of annualised premium {Exclusive of taxes^} paid towards the policy as maturity benefit if you survive the policy tenure. At the same time, if anything were to happen to you, the return of premium plan provides the Sum Assured to your family. 

✅  Which companies offer a term insurance plan with return of premium option?

Generally, most of the Life insurance companies in India offers term insurance plans with return of premium benefits.

✅ Which is the best term plan with return of premium?

While you may compare online which plan suits you the best. Some of the benefits of taking Term Insurance plans from Max Life are:

1) Significant financial protection against life’s uncertainties

2) Maturity benefits upon surviving the policy tenure

3) Protection against critical illnesses, accidental death and dismemberment

4) Multiple channels for a seamless buying experience

5) No bulky paperwork while buying or paying premiums for policies online

6) Dedicated claim settlement officer to make the claim process effortless

7) Multiple premium payment channels, including net banking, digital wallet, credit cards, and debit cards

* the coverage amount that you can opt for may vary depending upon several factors such as your age, annual income, coverage tenure, and premium payment term.

✅ What Major benefits are provided by term insurance plans with Return of Premium option?

Term insurance plans with return of premium option offers benefits policy benefits if anything happens to you within the policy period as well as upon surviving the policy. The major benefits are

1. In case of your unfortunate demise, your family would receive significant financial assistance in the form of the death benefit from the Term insurance plans with return of premium option

2. Upon surviving the policy term, you would receive the total amount of premiums back that was paid towards the term insurance plans with return of premium option. It does not include the premium paid for riders during the policy tenure.

3. You can avail tax benefits for the premium paid under Section 80C of the Income Tax Act 1961

4. The death benefit paid to nominee(s) is tax free and maturity benefit received under the Term insurance plans with return of premium option is tax-exempt under Section 10(10D) of the Income Tax Act 1961

You can also enhance your financial protection by opting for Add-ons/Riders (upon payment of the additional premium) against accidental death, life-threatening ailments etc.

✅ Is there any term insurance plan offered by Max Life which provides return of premium option?

Max Life Insurance offers the below term life insurance plan with return of premium option –

Max Life Smart Term Plan (A Non-Linked Non Participating Individual Pure Risk Premium Life Insurance Plan UIN - 104N113V03)

✅ What is the catch with the Term insurance plans with return of premium option?

There is no catch as such with the Term insurance plans with return of premium option. On the contrary, the Term insurance plans with return of premium option offers financial assistance in case of your untimely demise within the policy tenure. Moreover, these plans also offer to pay back the 100% of the Total Premiums that you pay towards the plan in case you outlive the coverage term.

‘Total premiums paid plus underwriting extra premiums, if any, for base policy’ refers to the total of all annualised premium paid plus underwriting extra premium, if any, under the policy including premiums for Life Stage Add on Sum Assured (if any)

✅ Should I buy a Term insurance plans with return of premium option?

Yes, you must purchase Term insurance plans with return of premium option if you require a significant amount of financial protection for your loved ones but have a low-risk tolerance when it comes to putting your money into term insurance. Unlike pure term insurance plans, Term insurance plans with return of premium option provides both death and maturity benefits, so that you and your loved ones can benefit from the plan. 

✅ Can you get your money back from term insurance on maturity?

Yes, term insurance plans with return of premium benefit offer to pay back the total amount of annualised premiums paid {Exclusive of taxes^} once you outlive the coverage tenure. In other words, if nothing happens to you throughout the term insurance policy period, you will receive the entire amount (exclusive of taxes) that you have paid for the plan.

Illustration – Suppose you bought a term insurance plan with a return of premium option for a Sum Assured of Rs 1 crore at a premium of Rs 25,000 per annum (Exclusive of GST)* with a policy term of 30 years. In the case of your demise within 30 years of buying the policy (i.e., the policy period), your family would receive the Sum Assured of Rs 1 crore.

However, if you survive the policy term of 30 years; you will receive Rs. 750,000 (25000 x 30) {Exclusive of taxes^} as maturity benefit from the plan.

Figures mention in the above illustration are assumed. 

✅ What does return of premium mean?

Return of premium benefit offered under term insurance plans implies that the insurance company would pay back the total amount of annualised premiums {Exclusive of taxes^} once you survive the coverage tenure. In other words, if nothing happens to you throughout the policy period, you will receive the entire amount you have paid as premiums (exclusive of taxes and amount paid towards rider) in the form of maturity benefit. 

✅ What is death benefit under return of premium term insurance plan?

Suppose you purchased a term insurance plan with a return of premium option for a Sum Assured of Rs 1 crore and pay a premium of Rs 20,000 per annum (inclusive GST)* with a policy term of 30 years. In the case of your unfortunate demise within 30 years of buying the policy (i.e., the policy period), your family would receive the Sum Assured of Rs 1 crore.

This Sum Assured which is paid to the family/nominee(s) in the event of death of the life insured is the death benefit under the return of premium term plan.

Figures mention in the above illustration are assumed. 

✅ Is the Term insurance plans with return of premium option a good deal?

Purchasing a Term insurance plans with return of premium option or TROP plan is a good deal, especially when you consider the amount of coverage the plan would provide to your family, should anything happen to you.

In case of your untimely demise, the Term insurance plans with return of premium optionwill provide the financial protection to your loved ones, like any regular term plan. The insurance amount received as death benefit is tax-free.

Not only that, in case you survive the policy tenure the total amount of premiums paid {Exclusive of taxes and exclusive of amount paid towards riders} ^ would be returned to you on Policy Maturity. This maturity amount is tax-exempt under Section 10(10D) of the Income Tax Act, 1961.

Why Choose Max Life

Here are some of the numbers which speak about our accomplishments

Why Choose Max Life

Here are some of the numbers which speak about our accomplishments
Claims Paid Percentage

99.22%

99.22%

(Source : As per Annual Audited Financials, FY' 19-20)

Max Life Presence

269 Offices

269 Offices

(Source : As reported to IRDAI, FY19-20)

Sum Assured

₹9,13,660 Cr.

₹9,13,660 Cr.

In force (individual) (Source : Max Life Public disclosure, FY19-20)

Assets Under Management

₹68,471 Cr.

₹68,471 Cr.

(Source : Max Life Public disclosure, FY19-20)

More reasons why our customers choose us

ARN: TPROP5

Let’s Connect

Let’s Connect

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SMS 'LIFE' to 5616188

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nri.helpdesk@maxlifeinsurance.com