We are all conscious about our lives and try to make healthier choices and to live a better and longer life. However, unfortunate circumstances do not always come because of something we do or do not do. The coronavirus pandemic has made it abundantly clear that no matter how cautious we are with our eating, sleeping, and exercising, there is still the fear of creating provision for medical emergencies or for untimely circumstances that lead to your family losing the earning member.
We all want to do right by our family and support them emotionally as well as financially. So why not create a financial portfolio that is diversified to suit the different needs of everyone in your family and help you at every stage of life?
You can earn substantial capital appreciation by investing in mutual funds and ULIPs but if you are looking to cover your life while you are at it, then you are going to need term insurance with return of premium benefit. Start investing in your future while making provisions for your family’s future and financial freedom as well.
Why Should You Opt For A Term Plan With Return Of Premium?
Besides offering a return of annualised premiums as a survival benefit, term plans with ROP provide policyholders and their beneficiaries with many other benefits as well. From accidental death benefit to a waiver of premium and from disability benefit to protection against critical illnesses, term insurance with ROP benefit is the go-to plan for every individual who wants to protect various aspects of their life.
Take a quick look at various term insurance benefits you can avail if you opt for a term plan with return of premium i.e., TROP plan:
1. Refund Of Premium Upon Survival
The TROP plan is different from the regular term plans as this plan will provide an amount of annualized premium throughout the term of your policy. In case of your untimely demise, even during the policy tenure, your beneficiaries receive the full sum assured under this insurance plan.
Alternatively, if you live out the insurance period, you will still be receiving the amount of premium* you had paid under the plan. Basically, you can avail both the policy itself and its survival benefits.
2. Critical Illness Cover
The term insurance plan with ROP also offers cover against life-threatening illnesses, making it an ideal insurance plan to cover various aspects of your life. One such plan that offers coverage against as many as 40 different health conditions is the Max Life Smart Term Plan, which offers immediate lump sum pay-outs from your policy coverage and helps you get the best possible treatment and care.
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3. Flexibility To Increase CoverageEvery individual needs a life insurance plan that can evolve with their evolving needs as a newly married individual would have different needs as compared to a father of two or someone who has just retired from his job.
Term insurance with return of premium makes place for your needs and aspirations that continue to grow and change all your life. The plan gives you the option to increase your life cover as and when important events occur in life, which can include marriage, childbirth etc.
4. Benefit From The Married Women’s Property Act
According to the MWPA, section 6 says that if a married woman purchases this TROP insurance for themselves and nominates her spouse and/or children, then no other individual, including her parents, relatives, friends etc, will have any rights to all the benefits listed under the term plan with return of premium.
Also, the insured individual will not have any rights to the benefits under this policy if they survive the term either.
You can choose to entitle your wife and children for the term insurance with return of premium under the Married Women’s Property Act of 1874, giving them both access to insurance cover payouts in case of your untimely death. Moreover, they will also get the survival benefits in the form of a refund of premiums in case you have survived the policy term.
The Bottom-Line: Benefit From Term Plan With Return Of Premium Benefit
Often when we begin investing or even buy insurance for that matter, we tend to look for those options that can deliver better returns on investments compared to other instruments. And rightly so since it is important to try and maximize our savings and create wealth from it.
However, we must all try to opt for plans and instrument tools that not only help maximize our savings but also offer security and protection to multiple aspects of one’s life. A term plan with return of premium benefit (ROP) will not only help in securing your loved ones in your absence but also provide them with the financial support they need.
Source:
https://legislative.gov.in/sites/default/files/A1874-3.pdf
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