What is Zero Cost Term Insurance?

The idea behind the formulation of Term Insurance plans is to offer financial independence to the entire family in the event of the ill-timed demise of an insured individual. It covers you for the long term, while the premiums are available at reasonable rates. One of its variations is a zero-cost term plan. In this, a nominee is eligible to receive the sum assured on the unfortunate death of the policyholder. Nevertheless, this term plan comes with a special exit feature. An insured person retains the right to surrender the policy before or post-retirement and obtain all the premiums disbursed against the base cover before the policy reaches its expiration date. Zero-cost term insurance schemes typically entail a prolonged policy term that ranges from 35 to 40 years.

Exceptional Features of Buying Zero-Cost Term Insurance

Get Your Premiums Back

Zero-cost term insurance is a fairly new classification of term plans in which the policyholder enjoys the option of exiting the term plan at a specific age and receives all the premium amount expended, after excluding the Goods and Services Tax (GST).

Classic Combination

Zero-cost term insurance plans are a combination of pure term plans and term returns of premium plans (TROPs). Term insurance presents financial coverage to the insured person for a specific time, which generally varies from 30 to 40 years.

Halt whenever you want

When it comes to a zero-cost term insurance plan, an individual can discontinue the plan if they feel that the requirement of a life cover is over. When compared to pure term plans, the premium charge for a zero-cost term insurance plan is a bit expensive.

Financial Security

This type of insurance policy provides a financial safety net at affordable rates for the policyholders if they survive their life insurance term. Insured individuals get financial security with Zero-cost term insurance without spending a lot.

Additional Funds

Zero-cost term insurance policies are designed in such a way that a policyholder will get additional funds at retirement as the premiums will be returned if an insured person does not file a claim on the policy and outlive the policy term.

Smart Investment Tool

Zero-cost term insurance plans can be recycled as an investment tool, as the money that is returned to the policyholder/nominee can be reinvested to generate a stable influx of income post-retirement. Such plans help you get peace of mind.

Individual Health Plan

Crucial Reasons to Buy Zero-Cost Term Insurance from Policychayan

Plethora of Options

Policychayan is a credible insurance aggregator channel that aims to deliver a comprehensive assortment of insurance plans from numerous insurance companies in India. Our platform enables you to compare to make a well-informed decision.

24*7 Customer Support

Policychayan aims to deliver top-notch customer support via several channels such as phone, email, and live chat. They have a staff of professionals who are always eager to help you with any queries associated with insurance or claims.

Quick and Ethical

Here at Policychayan, we are ethical in all our dealings. We follow stringent standards to give our customers the best. We have created this platform to help you accomplish all your insurance-related tasks freely and easily.

Frequently Asked Questions

Yes, the insured individuals can choose the policy term and sum assured depending on their distinctive requirements.

Yes, it can offer comprehensive coverage at zero cost. For example, you will find that the sum assured in numerous cases is as high as Rs. one crore.

No, zero cost Term plans do not present any maturity benefit. It signifies that if the policyholder outlives the policy term, he/she will not be entitled to receive any benefit.

Zero-cost Term policies entail strict surrender policies, and the policyholder is only permitted to surrender the policy during a specific time window.

You need to consider some important aspects like- coverage, policy term, premium payment frequency, riders, inflation, the reputation of the insurance company, and your requirements.

Yes, the Zero Cost Term Plan authorizes the policyholder to take an exit before the full term.

Yes, Under Section 80C of the Income Tax Act, 1961, premiums payments made towards a Zero Cost Term Plan are eligible for tax benefits. Additionally, under Section 10(10D) of the Income Tax Act, 1961 under the old tax regime, the death benefit received by the nominee is also tax-free.

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