To Get quote whatsapp your name,
date of birth
annual income
education
location
sum assured required to 9994266772
#zerocostterminsurance #nriterminsurance #nri #nomedicals
nri term insurance video
[ Ссылка ]
Best term insurance video
[ Ссылка ]

Zero-cost term insurance plans: What is the actual ‘cost’ of these policies?
In a zero-cost term insurance plan, the policy holder has the option to exit the plan at a certain age and get all the premiums that he has paid minus GST. These plans usually have a long policy term of 35 to 40 years. Are they really zero-cost?

Did you know that there is a new variant of the term life insurance cover which can be zero-cost for you? Read on to find out what these plans are and if they really are zero-cost policies. Read on to find out what these plans are and if they really are zero-cost policies.

Regular term plan vs zero-cost term plan
Under a regular term plan, if the policy holder dies during the policy tenure, his or her nominee will get the sum assured. No maturity amount is paid if he or she survives the policy term. There is another variant which is a return of premium term plan where the policy holder gets back all the premiums he has paid if he survives the policy term and if he has paid all the premiums regularly.
In a zero-cost term insurance plan the policy holder has the option to exit the plan at a certain age and get all the premiums that he has paid minus GST. "Under this plan, if the policy holder feels that all liabilities are taken care of around retirement age and is no longer wanting the term insurance, he or she will get back the premium that they have paid excluding the GST,"
Zero-cost term plans allow exit before the full term is over
Long-term continuity must before the exit is allowed
Zero-cost term insurance plans usually have a long policy term of 35 to 40 years. In Max Life Insurance’s Smart Secure Plus Plan, the exit option is available if the policy term is 40 years or above. If the policy term is between 40 years and 44 years, the policyholder will have an option to exit in the 25th policy year or at the age of 65, whichever is earlier, according to the policy document. For policy terms of 45 year and above, the policy holder can exit in the 30th policy year or at the age of 65, whichever is earlier.


It is evident that the exit option is medium to long-term and is available only if the policyholder continues the plan for a long period. It must be noted that the exit conditions differ from one policy to another.

Extra amount that you pay for zero-cost term insurance
The return of premium plans may typically cost twice that of the regular term plans. The zero-cost term plans are comparatively cheaper than the return of premium plans. However, they are generally 25-35 per cent costlier than the traditional term insurance plans.

Zero-cost term plans are targeted at those who buy insurance only with a return
The zero-cost term policies are aimed at the segment of customers who fear that if nothing unfortunate happens, they would be wasting the premiums paid for regular term insurance, say industry experts. If the policy holder chooses the exit option in these plans, they become zero-cost plans for them.

This policy is specifically targeted to encourage people who do not buy term insurance because there is no return on surviving the policy term,” he added.

Zero-cost or a gimmick?
Firstly, one should keep in mind that there is no concept of ‘zero-cost’ insurance. All insurance comes at a cost, whether it is a pure term plan, a return of premium, or any other type of policy.
"The customers should know that though they would be receiving the premiums back, they would be losing out on any interest they might have earned on the additional premium over the 20-25 years of the plan, and this is the 'cost’ associated with this type of plan," said Karthik Raman, Chief Marketing Officer, and Head - Products, Ageas Federal Life Insurance.

A traditional term policy for a 30-year-old that covers him for Rs 1 crore for a tenure of 30 years can usually cost around Rs 12,000 per annum. On the other hand, zero-cost term insurance of the same tenure can typically cost around Rs 15,500 per annum. So, if he buys a zero-cost term insurance plan, he is likely to spend around Rs 3,500 extra every year for 30 to 40 years.


In a nutshell, buying a pure term plan is always a good idea for financial protection. It is better to invest your surplus money than looking for getting it back after paying an extra premium for a long period.

свернуть