Zero Cost Term Insurance Policy

Indians don’t want to pay for something which protects them when shit hits the fan. That’s why insurance is so under-penetrated in India.

To address this, insurance companies have launched something called ✨Zero cost term insurance✨

This is a new policy which returns all your money back even if you don’t die. The main catch is that you have to purchase a 35-year policy. Usually term insurance is required until you’re 60.

For example, in my case, I’m 27. If I purchase a policy which ends at 60, that’s 33 years from now. I will not be eligible for zero-cost. Hence I need to extend the policy term by another 2 years to be eligible for Zero-cost. The premium cost will increase by 10% but the opportunity cost of that increased premium cannot beat getting all the money back.

➡️ To get access to this tool which helps comparing insurance policies then you need to subscribe to the One Percent Finance Club (Link in bio)

If you haven’t purchased a term insurance before then you can consider this. But if you’re someone who feels like you will achieve financial independence in less than 30 years then you don’t need this because zero cost term insurance allows you to get all the money back only after crossing 30 years or 60 age whichever is earlier.
.
.

Connect with me on:

#financewithsharan #finance #sharan

[somitrasharma]

I thought the dad was gonna beat his son up after jail. 😂

[lazboi]

bro’s so harmful he was holding the dumbledore’s wand

[just.dibyansh]

and the amount of premium that is increased per month is insane, put that money in sip, continue with normal term plan and you'll end up with a much much larger corpus

[malcolmn.mukadam]

The police man is a fan of Harry Potter too.🙂👍

[LCx]

My father would just leave me there and cut my name from his will .

[rchjfjc]

for some reason these videos are more entertaining then all other finance hacks/tips videos

[manishnautiyal]

Such policies are actually costlier

If you pay 12K annually for regular term plan, money-back term plan costs 2x, i.e. 24K

All you get in money back term plan is the premium paid, but it's more logical to pay 1K in regular and invest another 1k in equity mf.

Return are 2.5x compared to money back insurance plans

[sahu_gamak]

This proves finance knowledge can take you out of most problems

[tusharbasra]

That's either the elder wand, or Sharan has some really twisted fantasies

[sauravagrawal]

I didn't knew you started doing promotions too. The extra which would be invested for money return after maturity will be hell lot more than the original amount invested.

[NishantBhardwaj]

A lot of finance YouTubers tried to copy you, but your energy stays different, kudos.

[vinayegalapati]

And that's the dumbest decision to take that type of policy

[geocry]

Term plan with ROP, Return of premium is actually loss of money. You could just sip that amount in any good small cap mutual fund, add a normal term plan and get a lot times more than what these plans can offer.

[Darker_Humorist]

Talking from phone in jail...
Totally legal...

[hogwarts]

Others : this vid was so useful .
Me : that Dumbledore's wand looks so beautiful 😂

[Luigi_bros]

He was so brave to call his father „daddy“ instead of „dad“

[PrasanthNair]

Premium is double for zero cost insurance.it’s same if you take normal insurance with low premium and put same amount as SIP. After 25-30 years. We will get more money as return compared to zero cost insurances pay back

[exotic]

If I did that in a theatre and got caught, my dad would rather let me be in jail 😂

[mohammedhumaid]

Sharan was like....
Daddy in parallel world 😂

[sripradhan]

If we select Return of premium option, it will ask for more premium or opt to pay for more years. If we invest the difference in outside (even with fd rate) we get double amount than they offer.