Zero-cost term insurance policy: Do benefits outweigh the costs?
- They come with longer tenures, offer a single exit option and there is no cash benefit if the option is exhausted.
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?