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One of the best things about a term insurance plan is that it is one of the simplest forms of life insurance. It is a straightforward contract where the insured individual pays a premium to the insurance company, and the company, in turn, provides life cover. In case the insured dies during the term of the policy, the appointed nominee/ nominees get an assured amount known as the death benefit. In case the insured outlives the term, the policy comes to an end, and no benefit is payable. While term insurance works in a simple way, there are many aspects that keep evolving.
One such recent innovation has been zero cost term Insurance. These plans come with a unique feature where you are given the option to exit a term insurance plan and also get back the premiums that you have paid towards the plan.
A well-thought-of variant, it helps you overcome the apprehension that term insurance goes waste in case the insured individual outlives the policy. In India, where the insurance penetration is far below the worldwide average, most people feel that because no benefit is payable at the end of the term if the insured outlives the policy, term insurance is not the most ideal option. If you, too, feel the same way, then it is time to introduce you to Zero Cost Term Insurance. Read on to learn all about Zero Cost Term Insurance.
When you opt for a term insurance plan with life cover online, you also have the option to choose a return of premium, TROP, option. In case the insured outlives the policy, at the time of maturity, the total amount paid in premiums is paid back. However, when you buy Zero Cost Term Plan, you have the option to stop making premium payments anytime you wish. So, if you feel you are at a stage where you do not need a life cover, you can exit the plan and get back the premiums that have been paid.
Given below are some of the best zero cost term insurance plans:
Purchasing a zero-cost term plan today is one of the wisest decisions because of the following reasons,
If you are a salaried person and are afraid of investing in a regular term insurance plan, a zero-cost term policy is for you. You will be paid back the entire premium amount you paid for your plan. Hence you must buy a zero-cost term plan today.
The premium amount paid against the return of premium plans is almost 70-80 higher than a usual term plan. In contrast, a zero-cost term plan is affordable and does not imply any additional cost on premium. You can exit your zero-cost term plan when you want and request a refund of your premium. However, the return of premium plans continues till its tenure, and you cannot exit it in the plan's mid-term. Also, you will get your refund back after its complete tenure.
Zero-cost term insurance policy offer multiple benefits and is working like a game changer in the insurance market. People who are sceptical about investing in regular-term plans are also opting for zero cost as it guarantees high levels of engagement.
After a certain period, you can discontinue your plan any time when you feel you no more need it.
When you exit your plan, you can request a refund of the plan even if you apply for early termination of your policy.
If you wish for long-term coverage and you are not sure about your retirement age, zero cost term insurance policy is for you. However, you need to pay premiums for a long time.
The premium rates of the zero-cost term insurance policy are quite affordable compared to the term return of premiums.
The zero-cost term insurance plan offers the advantages of a regular term plan and the return of the premium plan.
Below are a few important documents that are required to opt for a zero-cost term insurance policy,
If you are planning to purchase a term insurance plan, you need to be aware of all the variants of term insurance, especially the most recent variant-Zero Cost Term Insurance. The plan offers you the flexibility of quitting a term insurance plan without having to let go of the premiums that have been paid.
There are many types of life insurance plans, such as term life insurance plans, zero-cost term insurance plans, endowment plans, whole life insurance policies, ULIPs, and so forth.
Your age, gender, medical history, family history, lifestyle, and type of policy are the major factors that affect the premium of your life insurance plan.
In the case of a regular term insurance policy, if the insured dies during the tenure of the plan, the insurance provider will pay the sum assured money to the nominee. In case the insured outlives the plan, no payouts are released at the time of maturity of the plan. However, with zero cost term insurance, the insured can exit the plan whenever they want and can request for premium amount payback paid throughout the period.