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Look before you leap: Pure term insurance versus return of premium plan

Updated : January 16, 2019 12:33 PM IST

If a financial instrument returns the exact same amount that you invest in it, then your financial product has given you zero percent returns. Still, you might think its okay because you haven’t made a loss. Think again.
However, under a TROP Plan, if the insured survives the policy term, a sum of all premiums paid (less applicable taxes, rider premiums, underwriting extra, if any) or a higher amount depending upon the plan and insurer is paid.
Instead of opting TROP, you should always go for a pure term insurance plan. However, while planning to purchase this pure protection product you need to keep few things in mind.
Look before you leap: Pure term insurance versus return of premium plan

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