Would you be interested in an insurance plan that offers to return all your premiums paid over the years?
That’s exactly what a zero-cost term insurance plan does. Insurance companies such as Max Life, HDFC Life, Bajaj Life and ICICI Prudential Life offer ‘zero-cost’ term insurance plans in which policyholders can foreclose the policy if they so wish and get all premiums refunded or continue the plan till maturity without any cashback benefit.
But, does it make sense for you to buy zero-cost term insurance?
Typically, a term plan offers protection during the policy tenure but there is no cashback if you outlive the policy.
Zero-cost term insurance plans returns the premiums paid but come with strict exit conditions.
For example, Max Life zero-cost term plan, Smart Secure Plus, is available only if you opt for 40 policy years or more. It means a 30-year-old will have to buy a term plan that covers him until 70 years of age.
For HDFC Life, it is 36 policy years. In case of ICICI Prudential, it is available till the age of 55 years for those in the 18-34 years age bracket and 31 policy years for those who are 35 years old and above.
Source: livemint
