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Before you purchase a term insurance plan, you need to clearly understand the coverage offered and how many returns of premium you get.
A term insurance plan is said to be beneficial when the insurer gets good coverage and a return of premium. Though most insurers provide you with good returns, it is still advised that you buy insurance from reputable and trusted insurers with a good claim settlement ratio.
Similarly, before you purchase a term insurance plan, you need to clearly understand the coverage offered and how many returns of premium you get. This can help you select the apt term insurance plan that meets your financial requirement. This article is all about knowing the term plan with return of premium (TROP) insurances, its benefits, and how it works.
TROP or Term Plan with Return Of Premium is the same as that of a standard term plan, which comes with a coverage and death benefit to the policyholders. Apart from financial security, the policy beneficiary is offered an assured premium return, where the total premium paid during the policy period is paid back to the policyholder.
Term insurance with return of premium offers maturity benefit as a premium return in addition to the death benefit. Here are some of the notable benefits of buying a term plan with return of premium.
1. Death Benefit
When an individual buys a standard insurance plan, he gets life coverage with financial security for his family against any unforeseen events. The death benefit offered with the term plan with return of premium variant of the term plan helps the family get financially secured against the sudden loss of the family member.
2. Return Of Premium Benefit
Not every insurer offer TROP benefit to their policyholders. Hence many policy buyers look for buying a term plan that offers maximum coverage and benefits. That’s where Max Life insurance stands unique with their Max Life Smart Term plan where the policyholder gets return of premium, in case they survive the policy tenure.
3. Tax Benefits
Buying term insurance with a return of premium offers tax benefits to the policyholder, under Section 80C and 10 (10D). That being said, the premium paid towards the term plan and the return of the premium amount is tax-free. As per the rule, you get a tax deduction of up to Rs 1.5 lakhs on the premium paid for the term plan with return of premium.
4. Paid-Up Value
If the policyholder is unable to pay the premium, the term plan continues, with a lower cover. Certain insurers provide this benefit only after paying a premium for a minimum number of years.
5. Riders In Addition To Principal Cover
These include accident or disability rider, critical illness rider, etc.; if the insured has met with an unforeseen accident causing severe injuries, disabilities, or even death, the insured is offered a certain benefit.
For instance, Mr. Ramesh purchased a term plan with return of premium for a sum assured of Rs 1 crore. His premium was Rs. 25000 per annum for 30 years. On the sudden demise of Mr. Ramesh before 30 years, his family will receive Rs. 1 crore. But if Mr. Ramesh is alive and completes the policy tenure of 30 years, he will receive the entire premium payment back.
Note that you need to buy a term plan at an early age – your premium amount is determined based on your age. The younger the age, the better the premium amount will be. Premiums can increases between 4-8% each year after your birthday. At later ages, you are at risk of getting your policy rejected or the premium amount increasing by 50%. This can even go more if you have a lifestyle disease.
When term insurance comparison is made with term plan for return of premium, it is clearly defined that a small investment in the term plan with a return of premium, not only secures your family but also ensures that you get back the entire amount invested in the insurance if you complete the tenure.
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UP Boards Topper Prachi Nigam was trolled on social media for her facial hair; our obsession with appearance is harsh on young minds.
Prachi Nigam’s photo has been doing the rounds on social media for the right reasons. Well, scratch that- I wish the above statement were true. This 15-year-old girl should ideally be revelling in her spectacular achievement of scoring a whopping 98.05% and topping her tenth-grade boards. But oddly enough, along with her marks, it’s something else that garners more attention – her facial hair.
While the trolls are driving themselves giddy by mocking this girl who hasn’t even completed her school yet, the ones who are taking her side are going one step ahead – they are sharing her photoshopped pictures, sans the facial hair, looking nothing less than a celebrity with captions saying – “Prachi Nigam, ten years later”.
Doctors have already diagnosed her with PCOD in their comments, based on photographic evidence. While we have names for people shamed for their weight – body shaming, for their skin colour- racism, for their age- age shaming, for being a female- sexism, this category of shaming where one faces criticism for their appearance has no name. With that, it also has zero shame attached to it.
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