Zero Cost Term Insurance
  • Understand Zero-Cost term insurance
  • Benefits of the plan
  • Explore the difference from other plans
zero cost term insurance
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Zero Cost Term Insurance

Most people only research life insurance or health insurance when there is a dire need or someone suggests purchasing insurance to safeguard their families and loved ones. India witnesses a lack of awareness when it comes to Insurance as it is a complex process. However, over the past few years, IRDAI has reinforced the way people buy insurance. With cutting-edge technology and emerging insurance aggregators, experienced insurance providers, and a robust insurance agent network every Individual now has access to hassle-free insurance.

Amongst the recent advancements in the insurance sector, there has been a buzz about a new variant of the term life insurance cover which can be zero-cost for you. Most salaried employees think that they are in for a loss when they buy insurance because, the common assumption is that if nothing happens to them during the coverage period, they get nothing in return or gain no monetary benefits. Therefore, the impression of losing their hard-earned money. To fight against this common thought process, zero-cost term plans have come into existence.

Cover your Family by term insurance Cover your Family by term insurance

So far, only two types of term insurance have been mentioned in the market. One is your plain jane policy where if a person dies during the policy term the nominee gets a lump sum assured. The other is the Return-of-Premium (RoP) term plan wherein if the policyholder survives the policy term he gets back all the premiums he has paid. However, ROP plans are on the costlier end than regular-term insurance.

What is Zero-Cost Term Insurance?

Let’s dive a little deeper and understand what zero-cost term insurance really means. It is going to be a desirable option if you are eager to get a return to the premium. Various insurance providers offer a complete return of premiums paid at a certain age specified by the policymaker. Zero-cost Term Insurance providers also facilitate discontinuation of the plan if you want to.

The newly introduced Zero-Cost Term Plan is basically the best of both worlds as it offers the security of a basic term plan and offers to pay back all the premiums like a return of premium term insurance plan. Moreover, zero-cost term plans offer the paid premiums to the policyholder upon the survival of the policy term and offer much lower tips than Return of Premium Plans.

When it comes to price points, the Return of Premium term plans charge 70% to 100% more than the regular Term Plan premiums, and Zero Cost term plan premiums are about 40% to 50% lower compared to the Return of Premium Term Plan premiums. Zero-cost term insurance will reimburse all of your premium payments if you tell your insurance provider to cancel your plan when you no longer have any responsibilities or when you are approaching retirement; however, they will deduct the GST.

The difference between Zero-Cost Term Insurance and the rest

The zero-cost term insurance policies are aimed at those segments of consumers who do not want to waste their premiums. As the name suggests Zero Cost Term Insurance Policies do not apply any additional premiums, in comparison to "Return of Premium" insurance plans. Regarding Zero Cost Plans, coverage ends when an insured person opts to surrender the policy and wants a return of premiums. Meanwhile, with Return of Premium Term Plans, the insurance coverage continues despite all premium payments being refunded. While the Return of Premium Term Plans is a good option and equipped to cater to the self-employed group, Zero Cost Term Plans are an excellent option for salaried employees.

To understand more about zero-cost term insurance plans we have enlisted a few things to keep in mind before purchasing this variant:

  • Less expensive than Return of Premium plans
  • Option to continue the plan till the end or to exit the plan and request the premiums back
  • The best option for salaried employees
  • Suitable for customers who are not sure about retirement age.


Whether you should purchase the new category of term plans called the zero-cost insurance plan will depend entirely on your financial goals. The newly introduced zero-cost term plan is an effective and affordable alternative to the traditional term plan and Return of Premium term plan. However, make sure that before investing in the Zero Cost Term Plan, make sure you read the fine print of the policy in order to avoid any unpleasant surprises in the future.

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What Our Customers Have to Say

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Priya Sharma


December 14, 2022

PolicyX has a smooth service from booking policy to verification. Employees are very patient and have good knowledge and help you throughout the process. Had great experience dealing with them

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December 9, 2022

I had many confusions regarding the term policies . But Policyx has handled it well, m happy that they are my wayfarer in this journey.

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Prerna Kumari


July 11, 2022

Good company. Presents nice term insurance plans and flexible plans also. My husband has brought one for the family.

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Priya Sangwan


July 11, 2022

IndiaFirst Term Insurance company ensures that your family s needs are looked after. One of the best companies offers a term plan per your needs.

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Priyanshi Deewan


July 6, 2022

I recently received the claim amount of the policy that my husband had brought for us. I am glad that the company understands the needs of its customers and their families. Well done Canara HSB...

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Rishabh Kumar


July 6, 2022

I bought a term plan with Canara HSBC for the protection of my family and have been satisfied with the benefits received. It is simple and easy to buy their plans.

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Samarth Gaur


July 6, 2022

I am very happy with the term plans offered by the Canara HSBC Life Insurance company. The plans offer comprehensive coverage and I am sure will support my family after my demise.

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Vipul Bhardwaj


June 9, 2022

Bharti AXA is a good life insurance company, and I am sure if something ha[opens to me, the company will look after my family s needs.