Return of premium term insurance
Term cover that pays your family if you die during the term, and returns the premiums you paid if you survive it. For the same sum assured it costs more than a plain term plan.
What it covers
Cover varies between insurers and plans. The policy wording is what decides whether a claim is payable, so read it before you buy.
- A death benefit to your nominee during the policy term, as on a plain term plan
- A survival benefit: the premiums you paid returned at the end of the term, as the policy defines them
- Terminal illness benefit, where the plan includes it
- Optional riders such as accidental death, critical illness, disability and waiver of premium
- A surrender value, where the policy has run the minimum period the plan requires
Key features
- The same death benefit structure as a plain term plan, with a survival benefit added
- The amount returned is the base premium paid, as the policy defines it, usually excluding taxes, rider premiums and extra loadings
- Premium is higher than plain term for the same sum assured
- Policy terms and premium-paying options: [POLICY TERM OPTIONS]
- Entry and maturity ages set by the insurer: [AGE LIMITS]
- Lapsing or stopping premiums affects the survival benefit, as set out in the policy document
How to buy it
Four steps, with an advisor you can reach at any of them.
Tell us what to cover
Tell us your age, income and the cover and term you want, and whether premiums should be returned.
Compare plans
See premium, cover, exclusions and key terms from our partner insurers side by side.
Share details & KYC
Add the details the insurer needs and complete KYC with your PAN.
Get your policy
Pay online, the policy reaches your email, and your advisor stays with you at claim time.
Return of premium term insurance: FAQs
Is return of premium worth the extra cost?
It depends on what you would do with the difference in premium. The returned amount carries no investment return, so compare plain term plus a separate investment against a return of premium plan. We can show both.
What exactly is returned?
The base premiums paid, as the policy defines them. Taxes, rider premiums and extra loadings are usually excluded, so read that definition in the wording.
What if I stop paying premiums?
The policy can lapse or be reduced, and the return of premium benefit is affected. Some plans acquire a surrender value after a minimum period; the exact treatment is in the policy document.
Can I add riders?
Most insurers offer the same riders as on plain term, such as accidental death, critical illness, disability and waiver of premium, at extra premium and subject to eligibility.