Return of premium (ROP) refers to an life insurance policy wherein premium paid for coverage is returned if the policy holder survives the tenure of the policy or includes a share of the premiums paid to the beneficiaries on death of the policy holder. 

ROP is a non-participating term insurance plan which provides insurance coverage to policy holder’s family members in addition to the benefit of return of premium. Maturity claim is the amount payable under an ROP – if the policy holder survives the policy term, then the whole amount of premium which he/she has paid till date is returned back to the insured. 

Key benefits of having RPO with maturity claims

  • Provides coverage during an emergency and guaranteed returns.
  • If the insured survives the policy tenure, then the whole amount of premium paid till date (minus the administrative charges) is reimbursed to the insured.
  • Tenure of term insurance policy with ROP can range between 5 - 35 years.
  • It’s a pure protection plan but offers an added advantage over regular term plans. 

Points to Note: 

Pure term insurance life plan does not offer maturity benefit.

ROP is ideal for people who want their family members to have an assured return on the expiry of the policy term.