Need Guidance on TROP(Term with Return of Premium) PLAN vs iTERM PLAN

POSTED BY sonadhi ON March 25, 2013 2:14 pm COMMENTS (11)


I am willing to have a good term insurance plan of at least 75lacs.I was thinking about to get Online Agon Religare iTerm plan.What precautions should I take while declaring/filling/getting checked by their doctors team to make sure that the claim is settled/not rejected in any circumstances in future.Its sure that evrything they asked will be cleared truly in no doubt.But I want to know of there can be any loop holes for which they may reject the claim after death in case.I want to make sure that the nominee should not have an worry if in case.


11 replies on this article “Need Guidance on TROP(Term with Return of Premium) PLAN vs iTERM PLAN”

  1. Raj says:

    Now since lots of online media and blogs exposed the scandal called “Moneyback policies” every insurer is going behind Term insurance. In fact some are going bit far by introducing Moneyback policies again with the tag of Term insurance like the one example we saw in this thread.

    As a consumer only question we have to ask ourselves before committing into these policies is that “Does your car insurer give you money back when you complete 5 years with your car?”. No they don’t, in fact they reduce premiums if you have a accident free year – but your life insurance companies are not reducing premium when you have a healthy year!

    Insurance is a simple product – you pay for the coverage you need, and depending on the risk of insuring you (your car, health, house, job etc.) the premium changes. Your ultimate goal should be reducing premiums you pay for your coverage. Please don’t pay high premium for getting Moneybacks or other perks.

  2. Dear Sandip, no you are not confusing. Actually you get it 100% right. The idea is just that. Instead of opting ROP, purchase a non ROP term plan & invest the saved prem. into any investment product be it PPF, FD or MFs & at the end of the term of your insurance plan, you w’d have more money than your ROP plan.



  3. Sandip Pawar says:

    I think I made confusing comment. I know there is no return on Maturity of term plans.
    In case of plain term plan premium is lower and in case of Term plan with return of premium would have comparatively more premium. So whatever difference in premium of both cases say x amount. If we invest that x amount for same term (period/duration of term plan) in some other thing like MF then returns would be more than the premium I would get returned if I remain insured for entire duration in case of ROP term plan.. Hussh!!!! Am I again sounding confusing ? 😀

  4. Dear Sandip, I w’d still wait for your home work. 🙂



  5. What returns! Both products will give you no returns. ROP premium wil be higher and premium will be returned only if you remain insured for the entire duration. Get a simple term plan.

  6. Sandip Pawar says:

    Ok.. I havent compared yet premiums in both cases, but now I think the difference of premiums in both cases would be more/less. That difference may get good returns over the period compared to return would be getting in case of ROP plan. Am I right ?

  7. Dear Sandip, what’ll be the prem. for your age, term & sum assured in both types plans from any insurer i.e. ROP & non ROP plans?



  8. Sandip Pawar says:

    Dear Ashal,

    Could you please elaborate on why one should not opt for Term plan with return ? Even ING Term plan has policy which gives returns/bonus once term insurance completes 50% tenure of its term. Why is it not good ?


  9. Dear Sona, please do not opt Retrun of Prem. plan at any cost as it’s sheer waste of your money.



  10. Dear Sona, why 75L Rs. only & not 1Cr? Any specific reason?

    Regarding the claim settlement, please declare each & every thing from your side honestly & once the policy is running, with all the disclosures, the claim can not be declined on any flimsy ground.



    1. sonadhi says:

      Thanks Ashal for creating confidence in me!

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