Top 7 term insurance plan with survival benefit in India

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Term insurance plan with survival benefit is the latest demand in the insurance sector. Actually there is no connection between both term insurance and survival benefits. From our general information, term insurance is a kind of policy where one can buy a huge life cover by paying a very nominal premium payment. After every year he/she have to renew the policy and at the end of the plan there is zero survival benefit. This has become a drawback for the term plans, as people don’t find these policies useful due to not getting back their money back. To change this phenomena and widen the market for term insurance plans, many companies now started launching term insurance plans with survival benefit option. In this article we will try to find such policies available in India now.

Top term insurance plans with maturity benefit

Mostly the new online term insurance plans launched by new insurance players are coming under this bracket. These category can be divided in further parts as in few such plan only premium is returned back (ROP) and in some other case premium with little more bonus can be added. Let’s find out few term insurance plans with money back option.

  1. Shriram Life Cash Back Term Plan : This is a non-linked and non-participating insurance plan with return of premiums at maturity.
  2. Aviva i Shield Plan : Aviva i shield online term plan will provide guaranteed 110% of premiums paid back on maturity. In case policy value is more than 20 lakh, one can get additional rebate on premium paid.
  3. AEGON Religare iReturn Insurance Plan: This is also a ROP or return on premium plan. In case death sum assured value will be paid as per pure term plan rules. But in case of maturity the premium paid will be returned back.
  4. Tata AIA Life Insurance iRaksha TROP: Under this policy one can pay premium regularly or limited period or single premium. In any case on maturity premium paid till policy end will be returned back to policy holder.
  5. ICICI Prudential Life Guard – Return Of Premium: This plan is available in 2 flavor in which with ROP, one can premiums paid back after policy end.
  6. Met Suraksha TROP: PNB Metlife insurance plan Met Suraksha TROP is also a policy with return of premium facility after maturity.
  7. Max Life Premium Return Protection Plan: Max Life has also launched a term plan to attract customers with ROP option on maturity.
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Don’t Miss Term insurance plans of LIC of India

Term insurance plan with survival benefit VS pure term plan

To explain the comparison between a pure term plan with a return of premium term plan I have prepared a chart below. I have considered Aegon Religare insurance company and compare both of their 2 types of term plans : iReturn and iTerm plan.

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term insurance plan with survival benefit

So from the chart it is clear that for the same life cover of 1 crore you have to pay 3 times more premium in case of ROP plans. If you choose a pure term plan, then you will pay total  8,424 X 20 = Rs 1,68,480, but for the ROP plans you will pay a total 4,51,540 and get the same back without any interest amount. If you would buy a pure term plan and invest rest amount (22,577 – 8,424 = Rs 14,153) in any traditional deposit scheme, lets say PPF account. Then in 20 years (with 5 year extension) you can get Rs 7,94,070 as maturity value. So straightway this calculation completely beat the term plans with ROP feature. Why do you like to buy a term insurance plan with survival benefit? Share your experience or query if any by a simple comment.

12 COMMENTS

  1. Regarding Term Plan with survival benefit, the agree that from ROP perspective, it fades away with the option of investing the additional premium charge in PPF etc – but the only thing that can be attractive is ROP Plan with Limited Pay where we pay the premiums for 5 or 10 years and get the return and insurance till end of tenure of 20 or 30 years.

  2. Hi,

    I am looking for a Term plan for 1Cr for 20yrs with Maturity benefits. Can you suggest me the best insurance & plan with a decent yearly premium.

    Thanks,

  3. Hello
    I am planning to go for TATA AIA (IRAKSHA TROP). Kindly let me know is that ideal to go for as it has a benefit on ROP after the expiry of Maturity date
    Also Advice which is the best co to go for term insurance both with ROP and without ROP for maximum age of 70 to 75 years
    Thanks

  4. can you suggest which term insurance plan covers maximum age . Most of them are offering upto 75 years only. Is there any plan covers for 80 plus or more

  5. I have a term plan of one crore of tata AIA at the premium 16000 pa offline . Should i switch it to online for save premium. Is it safe ? Plz campare both online as well as offline and tell me benefit of both

    • I think you can buy a cheap online term insurance plan easily and they are all same only. But try to go with the popular insurance companies in India only by checking other factors before choosing the best online term plan in 2016. 🙂

  6. Hello sir,
    I am 21(Nov-1994). I am planning to start investing in term insurance For 20-25yrs or more. But am confusing about weather I want to start Iterm insurance or Ireturn term insurance… I am planning to start this next year. I don’t have any properties so planning to start this way. Could you please suggest me sir.

    Thanking you.

    • Term plan with return benefit and a pure term plan is almost same only in the long run. You will understand when you calculate the premiums for these plans for a same sum assured value.

  7. I have HDFC Pure term insurance plan, i’m happy with that. Term insurance should not be mixed with other benefits. Along with ROP plans there additional rider plans as well, but insurance should never be linked with investments. Both are different segments.

    Go individually for that.

    • Thanks Shiv for your thoughts. You are absolutely correct, one should invest in pure return based product with pure term insurance plan to complete the basic personal finance planning.

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