Many people hesitate to buy term insurance for one common reason. What if nothing happens and all the premiums paid are lost? This feeling often prevents individuals from making timely financial decisions, even when they understand the importance of life cover. In a time when economic uncertainty, rising medical costs and growing family responsibilities are becoming everyday realities, the fear of paying for something that may never be “used” creates a serious gap in protection planning.
This is precisely where term insurance with return of premium offers a practical solution. It addresses this concern by providing life cover during the policy term and refunding the premiums paid if the policyholder survives until maturity. This dual-benefit structure makes it an appealing option for those who want security and reassurance that their money will not go to waste.
As awareness grows and financial planning becomes more structured in 2026, interest in such plans has increased significantly. Below are five of the best options available in India, explained in a simple, easy-to-understand way.
1. Aviva Life Term Plan With Return Of Premium
Aviva India offers a term plan that focuses on strong financial protection paired with premium refund benefits. The policy provides life cover throughout the chosen term and generally refunds all premiums paid upon maturity, but exclusions may vary depending on specific policy terms; taxes and riders may or may not be refunded, and customers should verify the exact terms before purchase.
Aligned with Aviva’s customer-first approach and its focus on transparent, suitability-led products, the plan supports responsible financial planning while ensuring clarity at every stage.
Key Benefits
- 100% refund of base premiums on survival, subject to conditions
- Most term insurance with return of premium plans, including Aviva’s, typically offer policy terms from 10 to 40 years.
- Optional riders for critical illness and accidental death
- Tax benefits under Sections 80C and 10(10D), subject to policy conditions
Example:
Ravi, aged 30, opts for a TROP plan with a sum assured of ₹50 lakh and a policy term of 30 years. His annual base premium is ₹15,000.
Under Section 80C, he can claim a deduction of ₹15,000 each year, reducing his taxable income accordingly, up to an overall annual limit of ₹1.5 lakh.
If Ravi survives the full 30-year term, he receives a refund of the total base premiums paid, calculated as ₹15,000 × 30 = ₹4.5 lakh, excluding rider premiums and taxes. This maturity payout is exempt from tax under Section 10(10D), subject to the policy fulfilling the prescribed conditions.
If Ravi passes away during the policy term, the nominee receives the full death benefit of ₹50 lakh, which is also tax-free under Section 10(10D).
Premiums paid for optional riders, such as critical illness or accidental death cover, typically do not qualify for a tax deduction and are not refundable.
This clearly demonstrates how Ravi gains both financial protection and tax efficiency, while retaining the assurance of premium return on survival, making TROP a balanced option between life cover and disciplined savings.
2. LIC Jeevan Amar With Return Of Premium Option
LIC Jeevan Amar offers a Return of Premium variant that combines life cover with a premium refund at maturity.
Highlights
- Flexible premium payment options such as single, limited and regular
- LIC Jeevan Amar allows entry age up to 80 years, not just 65, providing broader eligibility
- Strong claim settlement history
- Premium refund on survival till maturity
3. HDFC Life Click 2 Protect Return Of Premium
This plan offers comprehensive coverage with a premium refund if the insured survives the policy term.
Highlights
- Multiple plan variants for varied needs
- HDFC Life Click 2 Protect usually offers differentiated premiums based on risk factors such as non-smoker status and sometimes women, but exact discount structures depend on the selected plan variant and underwriting norms
- Riders for critical illness and accidental death
- Premium refund on survival, subject to policy terms
4. SBI Life Smart Shield With Return Of Premium
SBI Life Smart Shield provides flexible coverage options and returns premiums at maturity if the insured survives the policy term.
Highlights
- Level or increasing cover options
- Riders for accidental death and critical illness
- Refund of base premiums at maturity
- SBI Life Smart Shield generally allows entry age from 18 to 65 years, although limits may vary depending on the specific option chosen
5. Max Life Smart Secure Plus Plan
Max Life Smart Secure Plus offers premium return benefits along with long-term coverage.
Highlights
- Coverage under the Max Life Smart Secure Plus Plan can extend up to age 80 to 85, depending on the specific product variant, and customers should confirm the exact terms before selection.
- Terminal illness and accidental death benefits
- Refund of base premiums on survival
- Life-stage cover enhancement options
Understanding Term Insurance With Return Of Premium
A term insurance with return of premium plan ensures that if you outlive the policy term, the insurer refunds your premiums. While return of premium is generally expected, the refunded amount usually applies only to base premiums and excludes riders and taxes, and is subject to policy-specific terms.
This makes it ideal for individuals who want protection but are reluctant to pay premiums without seeing any return if no claim arises.
Are ULIPs Better Than TROP?
ULIPs and TROP serve distinct purposes. ULIPs combine insurance with market-linked investments. Some key ULIP benefits include potential higher long-term returns, fund-switching flexibility and structured investment discipline. However, ULIPs carry market risk, and returns depend on market performance.
In contrast, term insurance with return of premium offers predictable premium refunds, making it better suited to risk-averse individuals.
Why Term Insurance With Return Of Premium Is Becoming Popular In 2026?
- Premium refunds without market dependency
- Tax benefits under Sections 80C and 10(10D) are available subject to policy conditions; rider premiums or additional benefits may not fully qualify for exemptions.
- Encourages disciplined long-term savings
- Provides reassurance alongside consistent life protection
Conclusion
Choosing the proper term insurance with the return of a premium plan today is about balancing emotional comfort and financial responsibility. In 2026, policies from Aviva, LIC, HDFC Life, SBI Life and Max Life continue to gain attention due to their clarity, flexible structures and customer-focused benefits.
For individuals seeking dependable life cover and the reassurance of receiving their premiums back, these plans offer a sensible, structured option. By understanding policy terms clearly, carefully comparing benefits, and selecting cover that fits your goals, you can take a confident step towards securing your family’s future.
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