When it comes to securing your family’s financial future, term insurance is one of the most affordable and effective tools available. But what if you could combine the protection of term insurance with the assurance of getting your money back if you outlive the policy? That’s where term insurance plans with guaranteed returns come into play. In India, these plans—often known as Term Insurance with Return of Premium (TROP)—are gaining popularity for offering both peace of mind and a savings element.
What Is Term Insurance and Why Does It Matter?
Term insurance is a straightforward life insurance product that provides coverage for a specific period—say, 10, 20, or 30 years. If the policyholder passes away during this term, the insurance company pays a death benefit to the nominee. It’s pure protection, designed to ensure your loved ones aren’t left in a financial lurch if the unexpected happens.
But here’s the catch: traditional term insurance doesn’t offer any payout if you survive the policy term. That’s where plans with guaranteed returns change the game. These plans refund all the premiums you’ve paid if you outlive the policy, blending the security of life cover with a savings component.
Why does this matter? For many Indians, the idea of paying premiums for years only to receive nothing at the end feels like a loss. TROP plans address this concern, making them a compelling choice for those who want both protection and a financial return.
What Are Guaranteed Returns in Term Insurance?
In the context of term insurance, “guaranteed returns” typically refer to the return of premiums paid over the policy term. Unlike endowment plans or ULIPs, which promise investment growth, TROP plans focus on refunding your premiums without additional interest or bonuses. For example, if you pay ₹10,000 annually for 20 years (a total of ₹2 lakh), a TROP plan guarantees you’ll get that ₹2 lakh back if you survive the term.
This feature makes TROP plans slightly more expensive than pure term insurance, but for many, the trade-off is worth it. It’s like a safety net with a bonus—you’re covered if something happens, and you’re rewarded if it doesn’t.
“Term insurance with return of premium is a win-win. You protect your family, and if all goes well, you don’t lose your investment.” – Financial Advisor, Priya Sharma
Why Choose a Term Insurance Plan with Guaranteed Returns?
- Financial Security: Your family gets a payout if you’re not around.
- Money Back: You recover your premiums if you survive the term.
- Peace of Mind: No regrets about “wasted” premiums.
- Tax Benefits: Premiums qualify for deductions under Section 80C, and the maturity amount may be tax-free under Section 10(10D), subject to conditions.
With so many options in the Indian market, how do you pick the best one? Let’s explore the top term insurance plans in India with guaranteed returns.
Top Term Insurance Plans in India with Guaranteed Returns
Here’s a detailed look at some of the best TROP plans available in India in 2025, based on their features, flexibility, and customer satisfaction.
1. ICICI Pru iProtect Smart
ICICI Prudential’s iProtect Smart is a versatile term plan that offers a return of premium option. Known for its comprehensive coverage, it’s a favorite among policyholders who want flexibility and value.
Key Features:
- Return of Premiums: Get 100% of your premiums back on survival.
- Coverage: Up to age 99, with sum assured options reaching ₹2 crore.
- Payout Flexibility: Choose lump sum, monthly income, or a mix of both.
- Life Stage Boost: Increase coverage at milestones like marriage or parenthood.
- Special Rates: Lower premiums for non-smokers and healthy individuals.
Why It Stands Out:
ICICI Pru iProtect Smart isn’t just about returns—it also covers terminal illness and disability, making it a holistic choice. A recent X post from ICICI Pru Life emphasized, “With iProtect Return of Premium, enjoy guaranteed returns as a lump sum or monthly income—your choice!”
Premium Example:
For a 30-year-old non-smoker, a ₹1 crore cover with a 30-year term might cost around ₹12,000 annually (indicative).
2. HDFC Life Click 2 Protect Super
HDFC Life’s Click 2 Protect Super is a customizable term plan that includes a return of premium feature. It’s designed for those who want tailored coverage with added benefits.
Key Features:
- Return of Premiums: Full refund on maturity.
- Coverage: Up to ₹1 crore, with terms extending to age 85.
- Riders: Accidental death benefit, critical illness cover, and waiver of premium.
- Flexibility: Increase coverage without medicals at key life stages.
Why It Stands Out:
The waiver of premium on critical illness is a game-changer, ensuring your policy stays active even if you can’t pay. It’s ideal for those seeking robust protection with a savings kicker.
Premium Example:
A 35-year-old might pay ₹15,000 annually for a ₹1 crore cover over 25 years (indicative).
3. Tata AIA Sampoorna Raksha Promise
Tata AIA’s Sampoorna Raksha Promise offers whole-life coverage with a return of premium option, appealing to those who want long-term security.
Key Features:
- Return of Premiums: Get your money back if you survive the term.
- Coverage: Up to age 100, with sum assured up to ₹1.5 crore.
- Income Option: Receive payouts as income for 10 years post-maturity.
- Accidental Death Benefit: Extra sum assured if death occurs due to an accident.
Why It Stands Out:
The whole-life coverage and income option make it unique, offering both longevity and flexibility in how you receive your returns.
Premium Example:
For a 30-year-old, a ₹1 crore cover for 30 years might cost ₹14,000 annually (indicative).
4. Max Life Smart Secure Plus
Max Life’s Smart Secure Plus combines TROP benefits with inflation-adjusted coverage, ensuring your policy keeps pace with rising costs.
Key Features:
- Return of Premiums: Full refund on survival.
- Coverage: Up to ₹1 crore, with terms up to age 85.
- Inflation Protection: Option to increase sum assured over time.
- Riders: Critical illness and accidental death benefits.
Why It Stands Out:
The inflation-linked coverage is a forward-thinking feature, making it ideal for younger buyers planning for the long haul.
Premium Example:
A 25-year-old might pay ₹11,000 annually for a ₹1 crore cover over 30 years (indicative).
5. SBI Life eShield Next
SBI Life’s eShield Next is a cost-effective TROP plan with extensive coverage options, backed by the trust of a public-sector insurer.
Key Features:
- Return of Premiums: 100% refund on maturity.
- Coverage: Up to age 100, with sum assured up to ₹1 crore.
- Affordable Premiums: Competitive rates for budget-conscious buyers.
- Riders: Add-ons like accidental death and critical illness cover.
Why It Stands Out:
Its affordability and long-term coverage make it a solid pick for first-time buyers or those with limited budgets.
Premium Example:
A 30-year-old might pay ₹10,000 annually for a ₹1 crore cover over 25 years (indicative).
6. PNB MetLife Mera Term Plan Plus
PNB MetLife’s Mera Term Plan Plus rounds out our list with its blend of TROP benefits and critical illness coverage.
Key Features:
- Return of Premiums: Full refund on survival.
- Coverage: Up to ₹1 crore, with terms up to age 85.
- Critical Illness Benefit: Lump sum payout on diagnosis of covered illnesses.
- Flexible Terms: Customize your policy duration and payout options.
Why It Stands Out:
The critical illness benefit adds an extra layer of protection, making it a well-rounded option.
Premium Example:
A 35-year-old might pay ₹13,000 annually for a ₹1 crore cover over 20 years (indicative).
Comparison of Top Term Insurance Plans
To make your decision easier, here’s a side-by-side comparison of these plans:
| Plan Name | Sum Assured | Premium (Annual) | Policy Term | Return of Premiums | Unique Features |
|---|---|---|---|---|---|
| ICICI Pru iProtect Smart | Up to ₹2 crore | ₹12,000+ | Up to 99 | Yes | Life stage boost, terminal illness cover |
| HDFC Life Click 2 Protect Super | Up to ₹1 crore | ₹15,000+ | Up to 85 | Yes | Waiver of premium, accidental death benefit |
| Tata AIA Sampoorna Raksha | Up to ₹1.5 crore | ₹14,000+ | Up to 100 | Yes | Whole life cover, income option |
| Max Life Smart Secure Plus | Up to ₹1 crore | ₹11,000+ | Up to 85 | Yes | Inflation-adjusted coverage |
| SBI Life eShield Next | Up to ₹1 crore | ₹10,000+ | Up to 100 | Yes | Affordable premiums, long-term cover |
| PNB MetLife Mera Term Plan Plus | Up to ₹1 crore | ₹13,000+ | Up to 85 | Yes | Critical illness payout |
Note: Premiums are indicative and vary based on age, health, and other factors.
Key Benefits of These Plans
Here’s what makes these TROP plans stand out:
- ICICI Pru iProtect Smart: Unmatched flexibility with coverage up to age 99.
- HDFC Life Click 2 Protect Super: Robust riders for enhanced protection.
- Tata AIA Sampoorna Raksha Promise: Whole-life coverage with income options.
- Max Life Smart Secure Plus: Future-proof with inflation adjustments.
- SBI Life eShield Next: Budget-friendly with trusted backing.
- PNB MetLife Mera Term Plan Plus: Critical illness support for added security.
Factors to Consider When Choosing a TROP Plan
Picking the right plan isn’t just about returns—it’s about finding the perfect fit for your needs. Here are some key factors to evaluate:
1. Claim Settlement Ratio (CSR)
The CSR reflects an insurer’s reliability in paying claims. A ratio above 95% is a good benchmark. For instance:
- ICICI Pru: 97.8%
- HDFC Life: 98.7%
- Tata AIA: 98.5%
2. Premium Rates
Compare premiums to ensure affordability. SBI Life eShield Next often offers the lowest rates, while ICICI Pru and HDFC Life might charge more for added features.
3. Additional Riders
Riders like critical illness or accidental death benefits can enhance your policy. HDFC Life and PNB MetLife excel here.
4. Customer Service
Look for insurers with a strong reputation for support. Online reviews and testimonials suggest ICICI Pru and Tata AIA lead in customer satisfaction.
“A high claim settlement ratio and good customer service are non-negotiable when choosing term insurance.” – Insurance Expert, Rahul Gupta
Pros and Cons of TROP Plans
Pros:
- Guaranteed refund of premiums.
- Combines protection and savings.
- Tax benefits on premiums and maturity.
Cons:
- Higher premiums than pure term plans.
- No investment growth (just a refund).
- Locked-in funds for the policy term.
Real-Life Scenarios: How TROP Plans Work
Scenario 1: The Young Professional
Amit, a 30-year-old IT professional, buys ICICI Pru iProtect Smart with a ₹1 crore cover for 30 years. He pays ₹12,000 annually. If he survives until 60, he gets ₹3.6 lakh back. If he passes away, his family receives ₹1 crore.
Scenario 2: The Family Man
Priya, a 35-year-old mother, opts for HDFC Life Click 2 Protect Super with a ₹1 crore cover for 25 years. She pays ₹15,000 annually. At 60, she receives ₹3.75 lakh—or her family gets ₹1 crore if tragedy strikes.
FAQs About Term Insurance with Guaranteed Returns
1. What is a TROP plan?
A Term Insurance with Return of Premium (TROP) plan refunds all premiums paid if you survive the policy term, offering both protection and a savings element.
2. Are TROP returns taxable?
Generally, the maturity amount is tax-free under Section 10(10D), but consult a tax expert for your specific case.
3. Can I increase coverage later?
Yes, plans like ICICI Pru iProtect Smart and HDFC Life Click 2 Protect Super allow coverage increases at life stages without extra medicals.
4. What if I miss a premium?
Most plans offer a grace period (usually 30 days). If unpaid, the policy may lapse, forfeiting benefits.
5. Online or offline purchase?
Online is cheaper and faster, but offline offers personalized advice. SBI Life eShield Next, for example, is a great online buy.
Conclusion: Your Path to the Best TROP Plan
Choosing the best term insurance plan in India with guaranteed returns boils down to your priorities—affordability, flexibility, or added benefits. ICICI Pru iProtect Smart shines for its comprehensive coverage, while SBI Life eShield Next wins on cost. Tata AIA Sampoorna Raksha Promise offers longevity, and Max Life Smart Secure Plus prepares you for inflation.