Zero Cost Term Insurance Plan is such a plan, in which the insured has the right to discontinue his policy whenever he wants. Despite this, the policy premium will be returned to him by the company.
In today’s time, every person takes an insurance policy for the financial security of his family, so that after that his family does not have to reach out to anyone for their financial needs. Generally people prefer to invest in life insurance.
Many times economic problems or financial problems arise in front of people, due to which the insurance premium is not paid and due to this, they are not able to get the benefit of the insurance policy.
There are many beneficial schemes available in the market
In view of this problem of the people, many beneficial term life insurance schemes like term life insurance, endowment plan, ULIP are being given by the insurance companies. In these plans, the family gets help only after the death of the policy holder. But if the policy holder is unable to pay the premium for any reason, then he does not get the benefit of the insurance policy, nor does he get the premium amount back.
Along with this, many people avoid investing in term insurance plans because they feel that they will not get the maturity benefits of the policy in this scheme. Most people consider investing in term insurance plans as a waste of money. To remove this mentality, many insurance companies are returning the premium amount on termination of the policy.
Zero cost term plan can be the best option
Zero Cost Term Insurance Plan is such a plan, in which the insurer has the right to discontinue his policy whenever he wants, i.e. when the policy holder feels that he cannot pay the premium for the policy or he can cancel the policy. If he doesn’t want to run further then he can end or stop it. Terminating the insurance policy in this plan does not mean at all that he will not get back the money deposited as premium, but according to this plan if the insurer returns his policy i.e. terminates, then the insurer company He will be refunded the remaining amount after deducting GST.
People’s interest has increased in these plans
In recent times, people’s interest in this zero cost term plan has increased. Along with the normal term plan and TROP (Term Return of Premium) present in the market, now people have started investing in this plan as well. Insurance companies like Max Life, Bajaj Allianz are making these plans available to the customers in the market. The maximum benefit of these plans will be to the policy holders of retirement age.
According to Sajja Praveen Chowdhary, head of Policybazaar.com, “The most important thing about zero cost term plans is that the policy holder is allowed to terminate the policy on certain occasions. Such policy holders are refunded after deducting GST from their total premium.
Features of Zero Cost Term Insurance
- In this plan, if the policy holder feels that he does not want to continue with the policy, then he can terminate the policy.
- On termination of the policy, the remaining amount will be paid to the policy holder after deducting GST accordingly till that time.
- The premium amount of the policy taken under this plan will be less i.e. cheaper as compared to other normal term plans, while the premium amount is more in TROP plan.
- At present, this scheme is being given by Bajaj and Max Insurance Company, while there is a possibility of bringing such scheme by other companies soon.
