1 Crore Term Insurance for ₹500/Month? Pure Term vs. Return of Premium (TROP): Which One is the Scam?
In India, we have a mental block. We hate spending money on something if we don't get anything back. Insurance agents know this. That is why they push "Return of Premium" (TROP) plans. They say, "Sir, if you survive the policy term, we will give all your premiums back!" It sounds perfect. Free insurance, right? WRONG. In 2026, buying a TROP plan is one of the worst financial mistakes you can make. Today, I will use simple math to show you why you should stick to a Pure Term Plan and invest the difference. Pure Term vs. Return of Premium 1. The Price Difference (The Shock) Let's look at the premium for a ₹1 Crore Cover for a 30-year-old non-smoker male (Policy term: 30 years). 💰 The Cost Comparison Pure Term Plan: ₹10,000 per year. (Approx) Return of Premium (TROP): ₹20,000 per year. (Approx) Fact: You are paying DOUBLE just to get your...