Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Zero Cost Term Insurance Plan: What is & Should you buy it?

A zero-cost term insurance plan can exit at a certain age and get all the premiums. Read to know the zero-cost term plan and whether you should buy it.

  • Dec 07, 2022
  • 4,544 Views

The purest and least expensive type of life insurance is called “term” insurance. According to the insurance terms, it offers the policyholder’s family financial security in the terrible event of their passing. An individual’s age, annual income, total debt, location, gender, present savings, investments, etc., are all considered when determining how much life insurance coverage is necessary. These elements aid in understanding your present and long-term financial goals, which later are used to determine the ideal sum assured.

Recently, insurance companies have begun to provide zero-cost term insurance policies that combine the advantages of both of these options, allowing you to receive your premium back upon surviving without having to pay a hefty premium. It might be confusing to choose from the various Term Plans that are offered, and many people wonder if they should select a standard plan, a Return of Premium plan, or a Zero Cost term plan online.

What a Zero Cost Term Insurance is, how it differs from a standard and the Return of a Premium Term Plan, and if you should get one are all covered in this article.

What is a Zero Cost Term Insurance?

If you want to purchase term life insurance, there are three different types of term plans you can choose from:

  • Normal term plan
  • The return of the premium term plan
  • Zero-cost term plan

A standard term plan provides a death benefit if the policyholder’s untimely passing during the policy term. It does not, however, offer a maturity bonus if the policyholder survives the policy term, unlike regular life insurance. When compared to standard term insurance policies, the premium is significantly lower, and you can have the highest sum assured for a reasonable premium.

If the policyholder passes away during the policy term, the Return of Premium Term Plans also provide the same death benefit. If the policyholder lives to the end of the policy term, they get their entire premium back, less GST. However, the Return of Premium Term Plans’ premiums is roughly twice as high as those of the standard Term Plans. Additionally, you are unable to leave the plan before the policy term. The insurer is not required to reimburse you for the paid premiums if you cease making premium payments or terminate the plan before the conclusion of the term.

The recently released Zero Cost Term Insurance combine the greatest features of both worlds. These term insurance policies have substantially lower premiums than Return Premium Plans and offer the paid premiums to the insured upon the completion of the policy period. While the premiums for Return of Premium Term Plans are 70% to 100% more than those for standard Term Plans, the premiums for Zero Cost Term Insurance are 40% to 50% lower. According to the terms and conditions of the insurer, the policyholder may also cancel the policy before the policy term expires and receive a full refund of all premiums paid.

What advantages do Zero Cost Term Plans offer?

  • The plan includes both the normal Term Plan and the Return of the Premium Term Plan’s advantages.
  • The Return of Premiums Term Plan is significantly more expensive than the Zero Cost Term Plan.
  • You can leave Zero Cost Term Plans at various points throughout your life. As a result, the insurer won’t have to worry about losing the premiums they already paid when they decide to leave the plan once they are retired or have paid off all of their responsibilities.

A more economical option to the standard Term Plan and Return of the Premium Term Plan is the recently released Zero Cost Term Plan. In the tragic event of the policyholder’s passing, the nominee will receive the sum assured, and if the policyholder survives, they will receive their whole premium payment, less any non-refundable fees and taxes. In addition, much like with a standard Term Plan, the policyholder can advise the insurer that they wish to cancel the plan and receive a refund of their premium payments, less any nonrefundable fees and taxes.

If you’re thinking about purchasing a term policy, it’s a good idea to research the insurers that offer it and compare it to a standard term policy in terms of premium, coverage, customer service, ease of purchase and renewal, claim settlement ratio, claim settlement process, etc. before making a decision. Ensure you read the policy’s fine print before purchasing the Zero Cost Term Plan to prevent any unpleasant surprises down the road.

Kotak e-Term

Download Brochure

Features

  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

How Not To Get Your Term Insurance Claim Rejected

Why does every working women need life insurance?

What Is a Renewable Term Insurance Policy?

Why Should You Not Take A Term Plan Without Medical Test in India?

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Do Beneficiaries Pay Taxes on Term Insurance?

Busting Myths and Facts About Term Insurance Policies

10 Ways to Mentally Refresh After a Stressful Day

Is There Any Tax Benefit on Term Insurance?

Is a Term Insurance Policy Portable?

9 Most Frequently Asked Questions on Term Insurance

Why Short-Term Insurance Plans Deserve a Second Look?

How do I Calculate My Term Insurance Premium

Importance of Term Insurance at Every Stage of Your Life

What Types of Deaths Are Covered in a Term Insurance Plan?

Term Plans are Definitely Cheaper than You Think!

Do term insurance policy have a waiting period after buying?

Should You Have Multiple Term Life Insurance Policies?

Difference Between Term Insurance and Endowment Plan

3 Things to Consider When Buying Term Insurance, If You are Single

Can I Make Changes to My Term Insurance Policy Post Purchase?

6 Types of Death not covered in Term Insurance Plan

Planning For Son or Daughter's Wedding

Types of Life Insurance Policies in India

Why 1 Cr Term Plan Is Necessary For Family?

Choosing Riders for Insurance Plans

All About Term Insurance Inbuilt Coverage

Insuring Against Disability With Disability Insurance Rider

5 Reasons to Buy Term Insurance When You are in Your 30s

Can You Get Term Insurance Without Income Proof?

What is Term Insurance? Term Plan Meaning and Definition

9 Point Guide on how to File Income Tax Return Online

Gift Your Father A Term Insurance Plan This Father's Day

9 Ways to Help Family Members in Financial Trouble

What is Insurance Premium? | Definition of Insurance Premium

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Advantages & Disadvantages of Term Insurance in India

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

5 Things To Consider While Buying Term Insurance Plan

10 Most Frequently Asked Questions - FAQs on Term Insurance

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Advantages of Buying Term Insurance in Your 50s

Does Term Insurance Cover Accidental Death?

Different Types of Protection Plans

Can You Increase Your Term Insurance Cover?

How To Calculate The Amount Of Term Life Insurance You Need?

Steps on How to Buy Term Insurance Online

8 Benefits of Term Insurance You Should Know

Joint vs Individual Term Insurance: Which One Should You Choose?

Should you have more than one nominee in your term insurance?

Should you buy a Renewable Term Life Policy?

How Much Term Life Insurance Cover Do I Need?

Tips to Choose the Right Term Period for Term Insurance Plan

While Buying Term Insurance Compare Features, Not Just Premiums

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

Why Buy Term Insurance Plan With a High Cover?

Term Insurance Vs Car Insurance: A Budgetary Choice You'll Regret

What Happens if you Hide Facts in your Term Insurance?

Cost of Term Insurance Likely to Increase Soon

Do I Need to Give a Medical Test for Term Insurance in India?

Increasing Term Insurance and Riders

How Does BMI Affect Your Term Insurance Premium?

4 Methods to Calculate How Much Term Insurance You Need

Comparing Term Plans – What Should You Look Out For

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

5 Reasons to Have a Child Education Plan

11 Types of Death not covered in Term Insurance Plans

Can Term Insurance Plans Be Purchased As A Gift?

5 Term Insurance Benefits for Single Women

Why Premium Amount for Term Insurance is So Low?

Ensure Protection Against Death, Disease & Disability With Life Insurance

Term Insurance Plans and Policies for Smokers

Term Insurance Claims – Make Sure Your Claims Are Never Rejected

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

What Are the Best Term Insurance Plans for Planning Retirement?

Is ₹1 Crore Term Insurance Good Enough Cover?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Which Death Type Does Your Term Plan Not Cover?

Why Term Insurance Is Better Than ULIP?

Eligibility Criteria for Buying Term Insurance in India

Tax Benefits of Term Insurance in India

Protection for your family

Term Life Insurance Vs Money Back Life Insurance

Can I Buy Term Insurance for a COVID-19 Patient?

Does Your Term Insurance Plan Cover Death Due to COVID-19?

भारत में गृहणियों के लिए टर्म इंश्योरेंस

Why Should You Buy Term Insurance in 2022?

What Should You opt for - Limited or Premium Pay?

Endowment Plans vs Term Plans: Understanding the difference

Individual Life Insurance vs. Group Term Life Insurance

Why Buy Term Insurance Even at Rising Rates?

All about Online Income Tax Calculator

Should You Buy a Term Plan After 40?

Why Term Insurance Is Important in times of COVID-19?

क्या ₹1 करोड़ का टर्म इंश्योरेंस पर्याप्त कवर है?

Buying A Term Insurance Plan? Take These Factors into Account

Term Insurance Basics You Should Know

Why Spending Time with Friends is Essential for Your Mental Health?

Know How to Invest at Every Age for Larger Returns

What are the Documents Required for Term Insurance Plan?

How Does Short-Term Life Insurance Work?

Is Group Term Life Insurance Provided By Employer Sufficient?

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

All you need to Know about Term Insurance Plans for housewives

Term Life Insurance Plan for Smokers vs Non-Smokers

Make Your Online Term Plan Your Family's Monthly Pay Cheque

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Why Married People Should Buy Term Insurance Under MWP Act?

Term Insurance with Critical Illness

What All Documents Required For Term Insurance In India?

What is a short term insurance policy?

How To Choose the Right Sum Assured Under a Term Plan?

What Are Insurance Riders and How to Choose Them in a Term Plan?

How to Compare Term Insurance Online

4 Things To Expect From Your Term Insurance Plan in India

Online vs Offline Term Insurance: Which Is The Better Option To Buy

How To Change The Nominee in Term Insurance?

6 Reasons That Make Term Insurance a Must Buy

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

भारत में जीवन बीमा कितने प्रकार के होते हैं?

Side Effects of Covid-19 Booster Doses

Is Life Insurance Investment Worthy Enough

Insuring Against Accidents with an Accidental Death Insurance Rider

What are incremental term insurance plans?

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

Calculating Term Insurance Premium

Why should single women purchase term life insurance?

How Much Cover Should I Take In A Term Plan?

Insuring yourself against Ill Health with a Critical Illness Rider

Is term Insurance Needed for People With No Dependents?

What is Critical Illness Policy?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Planning For Children's Future

How Does Term Life Insurance Work? Learn the Benefits

What is a term insurance plan with a return of premium, and how does it work?

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

Benefits of Short-Term Life Insurance Policy

Term Insurance With Riders In India

Make Your Online Term Plan Your Familys Monthly Payout

Term Insurance: Smokers vs Non-Smokers

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Can a Housewife Buy a Term Insurance Plan - All You Need to Know

Term Insurance Calculator - Everything You Need To Know

Is It Good To Buy A Term Insurance Plan In 2022?

8 Things To Do After Buying Term Insurance

What Is the Correct Age to Buy Term Insurance?

8 Factors to consider before choosing a Critical Illness Insurance

Why Term Plan Should Be The First Step To Securing Your Future?

टर्म इंश्योरेंस क्लेम प्रक्रिया

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Term Insurance vs Life Insurance: Understand the Difference and Benefits

Why You Must Include In Your Financial Planning?

Term Insurance: What Happens When You Don’t Pay Your Premiums?

Do You Need Term Insurance Cover After Retirement?

Can I Extend the Tenure of My Term Insurance Plan?

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Why Should New Parents Buy Term Life Insurance?

How to Surrender Term Life Insurance When You Have No Liabilities?

4 Reasons Why You Need Critical Illness Cover

Why is it important to buy term insurance plan?

5 Benefits of Early Retirement Planning

Term Insurance Age Limit – Term Plan for All Age Groups

टर्म इंश्योरेंस बनाम लाइफ इंश्योरेंस: अंतर और लाभ समझें

Top 3 Reasons Why You Should Buy A Term Plan Now

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

How to Identify Term Insurance According to Your Needs?

Can I Get Term Insurance on Behalf of My Spouse?

How Much Term Life Insurance Cover Do I Need in India?

Difference Between Term Insurance and Endowment Plan

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Everything About Claim Settlement Ratio for Term Insurance

Why Should You Add a Rider to a Term Insurance Plan?

Should Youngsters, Working Couples Buy Term Insurance Plans?

How to Buy ₹1 Crore Life Insurance Policy Without Medical Test?

Is Term Life Insurance Plan an Investment or Expense?

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Insuring Protection Against Death With Death Insurance Rider

How To Evaluate Your Term Insurance Quote?

10-Year Term Life Insurance Policy - Explained in Detail

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

What Should Be The Duration Of Your Term Plan in India?

Reasons You Need Term Insurance Plan as a Self-Employed Person

Insurance Policy for Housewife In India

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Difference Between Short-Term and Long-Term Insurance

Term Plan with Spouse Cover

How Does Term Life Insurance Work? Learn the Benefits

How To Choose the Right Term Insurance Plan?

Different Types of Premiums in Term Insurance?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Understanding Term Insurance Riders

Can Senior Citizens Avail Term Insurance?