Group Term Life Insurance

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bought a pure term insurance 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 for a policy worth more than 50 lakh?

There are several insurance providers, including ICICI Lombard, HDFC Ergo, Aditya Birla, and Niva Bupa, that offer stand-alone critical illness plans. Only a few of these companies provide a sum assured greater than 50 lakh. Keep in mind that underwriting norms change often, so it’s important to check with the specific insurer or your advisor to determine which one will offer the desired coverage.

If you’re unable to find the desired sum assured from a single insurer, you can purchase multiple plans from different providers. In the event of a named illness, all plans will pay out. Note that critical illness plans are fixed benefit plans and a claim from one plan will not affect the others.

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, live disorders, and paralysis, etc.

Read more about critical illness cover Critical Illness Insurance