Term Plans With Return Of Premiums Cost More

Business Standard · business

Term plans that return premiums upon maturity are gaining traction, with Aviva India recently launching its Smart Return of Premium Term Plan. These plans appeal to buyers who dislike paying for pure protection without a maturity benefit. However, buyers must consider the significantly higher premiums, which can be two to three times that of pure term plans. This higher cost may lead to inadequate coverage, potentially harming financial well-being if the insured passes away.