Gurugram (Haryana) [India], October 3 (ANI/NewsVoir): Policybazaar has partnered with leading Life Insurance Companies to launch a new category of Term plan under which the policyholder has the option to submit the Term plan post-retirement when his or her financial obligations are over and get all premiums back net of GST.
This effectively means one could buy a Term plan and keep themselves financially protected during the working years when their families are dependent on them and once the liabilities are over, they could exit the plan and get all their premiums back (net of GST) making the cost Zero.
This is a very powerful concept because customers don't pay anything extra to avail of this benefit making term insurance even more compelling as a protection tool. This option of exiting is a choice that the customer has, and one can excise this option depending on his or her financial situation.
Ever since Policybazaar's inception in 2008, the brand has pioneered and innovated the term insurance category to cast a wider safety net over India's under-insured population. This new category is one such innovation that should increase term insurance penetration.
There are customers who consider buying term insurance a waste of money since in a regular term plan if one survives till the maturity period, no benefit is paid out to the policyholder. This should encourage this segment to consider buying Term plan because now the premiums are returned under this newly introduced concept on zero-cost term plans.
These plans are available on Policybazaar website with insurer partners - HDFC Life, Max Life Insurance, and Bajaj Allianz Life Insurance.
The launch of this new category is aligned with the brand's larger message and mission of 'Har Family Hogi Insured'.
Sarbvir Singh, CEO, Policybazaar.com, says, "For almost a decade and a half, Policybazaar has persevered to establish term insurance category and its awareness in India. Despite the considerable uptick in the term insurance adoption, there's still a tendency to keep deferring the decision unless an unforeseen tragedy strikes. Now, with greater awareness, the life insurance industry is witnessing an increased demand from consumers and products like zero-cost term plans effectively address that demand. The cost-effectiveness of these plans targets the average Indian family and aims to expand the safety net to the length and breadth of the country."
Until now two categories of Term plans existed, such as:
Term plans - Under a regular term plan, if the policy holder dies during the policy tenure, his or her nominee will get the sum assured. No maturity amount is paid if he or she survives the policy term
Term return of premium plans (TROP) - Under a TROP plan, if the policy holder dies during the policy tenure, his or her nominee will get the sum assured. Sum of all premiums are returned on policy maturity. These plans typically cost twice that of regular term plans
This is now the third category i.e. a Zero cost term plan. Plans that cover you during policy period and if the policyholder dies during the policy tenure, his or her nominee will get the sum assured. Comes with an option to get all your premiums back at a specified age and most importantly cost you the same as regular term plans.
Policybazaar.com is one of India's largest insurance marketplaces. It is the flagship platform of PB Fintech, which owns the fintech brand, Paisabazaar.com, and the lending & insurance marketplace in the UAE region, Policybazaar.ae.
The Policybazaar.com Group has backing from a host of investors including the likes of PE funds and other family offices. Policybazaar.com started with the purpose to educate people on insurance products and with its offerings has addressed the large and highly underpenetrated online insurance markets.
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