Choosing Between Term Insurance and Return of Premium Plans: What Suits You?

The article discusses the differences between term insurance and return of premium plans (ROP), highlighting their cost, benefits, flexibility, and suitability for different financial needs. Term insurance offers low premiums for high coverage but lacks a savings component, while ROP plans provide maturity benefits but at higher costs.


Devdiscourse News Desk | Mumbai | Updated: 18-12-2024 10:53 IST | Created: 18-12-2024 10:53 IST
Choosing Between Term Insurance and Return of Premium Plans: What Suits You?
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Mumbai, December 18: When planning a secure financial future for your children, insurance should be a top priority. Two popular options are term insurance and return of premium (ROP) plans, each with distinct advantages.

Term insurance is the most affordable and straightforward type of life insurance, offering high coverage for a low premium. It is suitable for young earners or those with significant financial liabilities. In contrast, ROP plans, although more expensive, return the paid premiums to policyholders who outlive the term, appealing to those seeking both protection and savings.

The choice hinges on your financial objectives, risk appetite, and budget. Carefully consider the costs, benefits, and added features before making an informed decision that secures your loved ones' future while aligning with your long-term financial goals.

(With inputs from agencies.)

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