Thread by @ithoughtplan

Is there a SMARTER way to buy Term Insurance?

Can you get back all premiums paid while paying the same premium as a Pure Term cover?

This all sounds too good to be true, doesn't it? Let's dive deeper to find out 👇 (1/n)

#terminsurance #insurebesure #insurancepremium #thread

Zero-Cost Term Insurance plans allow you to 'exit' from the policy, thereby getting all the premiums that you have paid back.

But wait... What's the 'catch’? (2/n)

#insurance #terminsurance #financialfreedom

The CATCH is... You are allowed to exit the policy only within a specified period.

Let's look at an example. (3/n)

#insurancepolicy

Say you take a Zero cost Term Insurance policy at the age of 30.

The policy allows you to exit after 30 years and before the last 5 years. (4/n)

#terminsurance #insurancepolicy

That means if you have taken the policy till the age of 75, you can exit the policy only after the age of 60 and before you turn 70, i.e. between ages 61 & 70. (5/n)

#longtermcareinsurance

Keep in mind that the exit option will not be available if you have chosen a Return of Premium Policy.

In this case, the policy will terminate after you get the refund. (6/n)

#insurancepolicy #insurancepremium

These policies will not account for inflation, and you will get whatever the value of premiums paid (net of GST). (7/n)

#inflation #insurancepremium

The premium of some of these policies is slightly higher than if you were to choose a pure Term Insurance plan. (8/n)

#insuranceplan #terminsurance

So, let's answer the big question.

Does it make sense?

(9/n)

#insurance #insuranceclaim

If you are confident that after the age of 60-65, you won't have any commitments or dependents, withdrawing from the policy can be considered. (10/n)

#insurancepolicy #retirementplanning

It is always wise to speak to your Financial Planner before making a decision.

Remember to always read the fine print and Terms embedded in these policies as they may not be as simple as they seem on paper. (11/n)

#financialplanner #insurance #terminsurance #personalfinance

If you find this thread useful, retweet it and help us reach more people like you. (12/n)

#financialplanning #financialfreedom #insuranceplan #terminsurance #insuranceclaims

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