In India, term insurance with return of premium (RoP) has gained popularity among buyers who want life protection and also money back if no claim arises. Unlike pure term plans (which only pay on death), RoP plans refund all premiums paid if the policyholder survives the term.
In this 2025 guide, we compare the best RoP term insurance policies in India, analyze their features, and help you understand whether this type of plan is right for you.
What is a Return of Premium (RoP) Term Plan?
A Return of Premium term plan is a life insurance policy that:
- Pays a lump sum death benefit to your nominee if you pass away during the policy term
- Refunds 100% of premiums paid (excluding GST, rider charges) if you survive till the end of the term
- Offers the same coverage benefits as regular term insurance but at a higher premium
It blends the protection of term insurance with a savings component — offering a sense of return on investment.
Who Should Choose RoP Term Insurance?
RoP plans are ideal for:
- Buyers uncomfortable with “no-return” term policies
- Salaried professionals planning long-term financial goals
- Individuals with low risk appetite and desire for maturity payout
- First-time insurance buyers seeking both protection and peace of mind
Top Term Insurance Plans with Return of Premium (RoP) – 2025
Below are India’s most reliable RoP term plans, based on claim settlement, features, insurer reputation, and payout structure.
1. HDFC Life Click 2 Protect Super – Life Plus Option
Minimum Entry Age: 18 years
Maximum Maturity Age: 85 years
Sum Assured: ₹50,000 – No upper limit
Policy Term: 10 to 50 years
Return of Premium: Yes, under Life Plus option
Claim Settlement Ratio (2023): 99.39%
Features:
- Refund of all base premiums if you outlive policy
- Coverage includes terminal illness and disability
- Add-ons: Accidental death, waiver of premium, critical illness
- Coverage until age 85
Best For: High-income earners wanting security + returns
2. Tata AIA Sampoorna Raksha Supreme (Life Plus)
Minimum Entry Age: 18 years
Maximum Maturity Age: 100 years
Sum Assured: ₹50,000 onwards
Policy Term: 10 to 40 years
Return of Premium: Yes, with Life Plus option
Claim Settlement Ratio: 99.01%
Features:
- Option to receive maturity benefit (all premiums refunded)
- Longest policy tenure (up to 100 years age)
- Monthly income option on maturity (instead of lump sum)
- Terminal illness benefit included
Best For: Buyers looking for extended protection and maturity income
3. ICICI Prudential iProtect Smart – Return of Premium Variant
Minimum Entry Age: 18 years
Maximum Maturity Age: 75 years
Sum Assured: ₹50,000 and above
Policy Term: 10 to 40 years
Return of Premium: Available in select variants
Claim Settlement Ratio: 97.82%
Features:
- Terminal illness benefit included
- Covers 34 critical illnesses (with add-on)
- Option to get return of premiums on maturity
- Discounts for non-smokers and female policyholders
Best For: Buyers looking for robust life and health coverage
4. Max Life Smart Secure Plus – Return of Premium Variant
Minimum Entry Age: 18 years
Maximum Maturity Age: 85 years
Sum Assured: ₹25 lakh onwards
Policy Term: 10–67 years
Return of Premium: Yes, in ROP variant
Claim Settlement Ratio: 99.35%
Features:
- Full premium refund at maturity
- Choose lump sum or monthly payout
- Additional payout in case of accidental death
- Optional waiver of premium rider
Best For: Young earners looking for long-term, customizable benefits
5. Bajaj Allianz Life Smart Protect Goal – Return of Premium Option
Minimum Entry Age: 18 years
Maximum Maturity Age: 75 years
Policy Term: 10–40 years
Return of Premium: Yes, in select variants
Claim Settlement Ratio: 98.48%
Features:
- Terminal illness cover included
- Critical illness and waiver of premium riders available
- Non-medical options available for small sum insured
Best For: Buyers seeking affordable ROP plans with basic features
Comparison Table: Best RoP Term Plans (2025)
| Plan Name | Max Maturity Age | Return of Premium | Critical Illness Option | Monthly Payout Option | CSR (2023) |
|---|---|---|---|---|---|
| HDFC Click 2 Protect Super | 85 | ✅ | ✅ | ✅ | 99.39% |
| Tata AIA Sampoorna Raksha Supreme | 100 | ✅ | ✅ | ✅ | 99.01% |
| ICICI Pru iProtect Smart | 75 | ✅ | ✅ | ✅ | 97.82% |
| Max Life Smart Secure Plus | 85 | ✅ | ✅ | ✅ | 99.35% |
| Bajaj Allianz Smart Protect Goal | 75 | ✅ | ✅ | ❌ | 98.48% |
Pros and Cons of RoP Term Insurance
✅ Pros:
- Refund of total premiums on survival
- Same protection benefits as regular term plans
- Ideal for conservative buyers
- Tax-saving under Section 80C and 10(10D)
❌ Cons:
- Higher premiums than pure term plans (30–70% more)
- No interest on premium refunded
- Limited flexibility in some plans
- Not ideal for investors seeking high returns
Tax Benefits
- Section 80C: Premiums paid for RoP term plans are eligible for deductions up to ₹1.5 lakh per year
- Section 10(10D): Maturity amount (premium refund) is tax-free, provided annual premium is ≤10% of sum assured
Final Verdict: Should You Buy a Term Plan with Return of Premium?
RoP term insurance is suitable if you:
- Want insurance but dislike the “no return” concept
- Prefer guaranteed refunds over market-linked returns
- Have sufficient income to afford slightly higher premiums
- Want tax benefits along with life protection
It is not recommended if you’re purely cost-conscious or want to maximize life cover for the lowest premium.
For optimal coverage, many experts suggest a combination of pure term insurance + mutual funds. But RoP plans provide emotional satisfaction and guaranteed maturity return — ideal for low-risk profiles.
Disclaimer
This article is for informational purposes only. Product features, benefits, and premiums may change based on insurer underwriting rules and IRDAI guidelines. Always read the policy brochure before purchase.