I bought a pure term insurance policy plan five years ago and have paid around ₹1.5 lakh as premium. Recently, I came to know about zero-cost term plans. Can I switch my current plan to zero-cost term plan so that I can get back my premium amount entirely?
In simple terms, zero-cost term plans are a type of return of premium plan. If you choose to cancel the plan before its term is over, you can still receive a refund of your premiums. This option is usually available after the age of 60. However, these plans are more expensive than regular term plans, meaning you will have to pay extra premiums for 20 years before being eligible for a refund.
If the policyholder dies during this time, the death benefit is the same for both regular-term plans and zero-cost plans. Given that the main objective of the plan is to provide coverage for early death, I would not recommend paying the higher premium.
Keep in mind that term plans are separate long-term contracts and cannot be transferred from one plan to another. If you want to switch to a zero-cost term plan, you will need to purchase a new plan and discontinue your old term plan.
Know more about the advantages for Term Life Insurance Term Life Insurance
I am 36 years old and plan to buy a good critical illness cover for my family of four, including my wife and two very young children. My youngest child is just 1 year old. I already have a health policy but the insurer does not have any critical illness plans. Can you let me know the insurance companies that offer standalone critical illness cover so that I can subscribe to a policy worth more than ₹50 lakh?
Critical illness plans are typically issued on an individual basis and can be purchased for each family member. However, it’s important to keep in mind that insurers have a minimum entry age, usually five years. So it may not be possible to purchase coverage for a 1-year-old child.
A critical illness policy offers coverage related to life-threatening critical illnesses and lifestyle diseases. Such as stroke, kidney failure, liver disorders, and paralysis, etc.
Read more about critical illness cover Critical Illness Insurance
About The Author
Varun
MBA Finance
Varun has established itself as a knowledgeable and reliable expert in the field with 8 years of experience. Specializing in group-term life insurance, they have dedicated their career to helping businesses and individuals navigate the complexities of insurance products and services. Currently writing for SecureNow, he produces insightful blogs and articles that demystify group-term life insurance, offering practical advice, industry updates, and strategic insights. Their deep understanding of the insurance landscape and talent for clear and engaging communication make their content invaluable for both seasoned professionals and newcomers alike.