I wish to know if term plans also come with money-back options.
-Brijesh Kumar, Patna
Typically, it makes sense to go for a term plan that has no surrender value or money-back options if you, the policyholder, survive the policy tenure. However, these days term plans are available with a return of premium option. So, if there is no claim till the end of the policy term, premium paid over the tenure of the policy is refunded. The convenience does come at a cost—the premiums are higher than that for a plain vanilla term plan. If you were to calculate the returns to other products that pay back, it is insignificant. It is best to avoid such term plans and stick to basic term insurance plans which cost lesser than these.
