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What Our Plans Cover
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Death benefit
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Maturity benefit
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Terminal illness acceleration
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Optional riders for critical illne...
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A surrender value after a minimum...
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Loan facility against the policy o...
Who Can Consider This Plan?
- Entry age typically 18 to 65, with cover ceasing between 60 and 85
- Demonstrable income — the sum assured must be justified by earnings
- Full disclosure of health, smoking, alcohol use and family medical history
- Medical examination, usually required above a threshold age or sum assured
- Indian resident or NRI, subject to the insurer's country rules
What May Not Be Covered?
- Suicide within the first twelve months
- Any interest, growth or inflation adjustment on the refunded premiums
- Rider premiums and taxes, which are usually excluded from the refund
- Death from concealed material facts
- The refund entirely, if the policy is surrendered early — surrender values are low
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading insurance companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
Our Insurance Partners
- Star Health Insurance
- Care Health Insurance
- Niva Bupa Health Insurance
- HDFC ERGO
- ICICI Lombard
- Bajaj Allianz
We represent multiple providers to help you find the most suitable option at the best price.
- Expert Guidance Personalised advice from experienced insurance professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
A return-of-premium term plan pays the sum assured on death, exactly like a pure term plan, and refunds the premiums you paid if you survive to the end of the term. The refund is of premiums only — no interest, no growth, and no adjustment for inflation.
The cover costs two to three times what pure term costs. That difference is the price of the refund, and it is worth examining honestly. Money paid over thirty years and returned without interest at the end has lost most of its purchasing power in the meantime.
We describe this product accurately rather than enthusiastically because it sells well for psychological reasons, not financial ones. It exists to answer the objection "I get nothing back", and for some buyers that reassurance is what makes them buy any cover at all — which is a legitimate reason to choose it, provided it is chosen with the arithmetic in view.
Who should consider it
Buyers who genuinely will not purchase pure term insurance because getting nothing back feels intolerable, and for whom this is the difference between having cover and having none. Cover bought for imperfect reasons still pays a claim.
It is also defensible for someone with the discipline problem in reverse: a buyer who would not invest the premium difference and would simply spend it. The refund then functions as forced saving, albeit an inefficient one.
It is the wrong choice for anyone who will invest the difference. The gap between this premium and pure term, invested over the same period, is very likely to exceed the refund by a wide margin.
Benefits
- The full sum assured is paid on death, as with any term plan
- All premiums paid are returned if you survive the term
- Nothing is "lost" if no claim occurs, which is the whole appeal
- Premiums qualify under Section 80C
- The maturity refund is generally tax-free under Section 10(10D)
- Functions as forced saving for a buyer who would not otherwise save
What is covered, and what is not
Read the right-hand column first. It is the one that decides whether a claim is paid.
Typically covered
- Death benefit — the full sum assured to the nominee
- Maturity benefit — the total premiums paid, returned on survival
- Terminal illness acceleration, on most plans
- Optional riders for critical illness and accidental death
- A surrender value after a minimum number of years, unlike pure term
- Loan facility against the policy on some contracts
Typically not covered
- Suicide within the first twelve months
- Any interest, growth or inflation adjustment on the refunded premiums
- Rider premiums and taxes, which are usually excluded from the refund
- Death from concealed material facts
- The refund entirely, if the policy is surrendered early — surrender values are low
- Hazardous activities not declared at proposal
Inclusions and exclusions vary between providers and between plans from the same provider. The wording in your own policy document is what governs — we will walk you through it before you buy.
How it works with us
- 1 We work out the cover, before the plan Income, liabilities, dependants and the years they need supporting. The sum assured is the decision; the brand is a detail.
- 2 Underwriting reality check Health, occupation, smoking and family history decide who will accept you and at what price. Better to know now than after a rejection.
- 3 Two or three quotes with the claim record attached Premium matters, but so does the insurer's claim settlement history and how it treats early claims.
- 4 Proposal, medicals and financial underwriting Medicals are arranged at home. For larger cover the insurer will also want income proof — we prepare that file properly.
- 5 Policy issued, and your family knows where it is A term plan nobody can find is a term plan that does not pay. We make sure the nominee has the details.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Run the comparison before you decide. Take the premium difference against pure term, invest it monthly at a conservative return for the same term, and compare the result with the refund. The gap is usually large and in one direction.
- The refund covers base premium only. Rider premiums and GST are typically excluded, so you receive less than you paid in total.
- Surrender values in the early years are poor. This plan assumes you will hold it for the full term, and holding it is the only way the arithmetic works at all.
- Being refunded thirty years of premiums without interest means being refunded a fraction of their original purchasing power. That is not a criticism of the product; it is simply what a nominal refund is.
- If the choice is genuinely between this plan and no cover at all, take this plan. Imperfect cover pays claims; intentions do not.
Documents required
- Completed proposal form with full health and lifestyle disclosure
- Identity proof — Aadhaar, passport or PAN
- Address proof
- PAN card, mandatory for life insurance
- Income proof — salary slips, Form 16 or filed returns
- Bank statements, for larger sums assured
- Medical reports, arranged by the insurer
- Recent passport-size photograph
Frequently Asked Questions
Is this better than a pure term plan?
Financially, for most buyers, no. You pay two to three times the premium and receive your money back without interest decades later. Behaviourally it can still be the right choice — if it is what gets you to buy cover at all, or if you would otherwise spend rather than invest the difference.
Do I get the entire premium back?
You get the base premium back. Rider premiums and GST are usually excluded, so the refund is somewhat less than your total outlay. The exact definition is in the policy document and is worth reading before you buy.
What if I stop paying midway?
The policy acquires a surrender value after a minimum number of years, but it is low, particularly early on. This product only works if you hold it to maturity, which makes premium affordability a more serious question here than on pure term.
Is the maturity amount taxable?
The refund is generally exempt under Section 10(10D), subject to the conditions in force. Premiums qualify under Section 80C. Confirm the current position against your own circumstances before relying on it.
Should I buy this instead of investing separately?
Only if you know you will not invest separately. The mathematically superior route is pure term plus a systematic investment of the difference. The honest question is not which is better on paper, but which one you will actually follow for thirty years.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.