Term Insurance Query

[gourav]

Wow, was not aware of same about Term Insurance.

I need some more suggestions, but it will not add any good to this thread so opening new thread and would like to invite you Experts there to help me further.
@logistopath @nRiTeCh @t3chg33k @gourav

While google for Term Insurance plan details, I came across following... where they offer 100% Refund of Premium Paid.. please suggest

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Link Here >> https://www.policybazaar.com/life-insurance/term-insurance/

Here's how return of premium plans work

Let's say basic premium is ₹100 per year and policy term is 10 years. The insurer expects a return of 6% on their money. So how much do you need to put to have ₹1000 at the end of 10 years? Put this in Excel

=PMT(0.06,10,0,1000)

The answer is 75.87

So for return of premium, your premium will be ₹175.87.

You get what you pay, you're not getting anything above a regular term insurance. These plans exists purely because of LIC addicted Indians who want their money back if they don't die, even if it means incurring a loss during the policy term.

Edit: This calculation is incorrect. While it gives an Indication of what really happens, you don't really get your premium back because now you end up paying 176.

So they actual calculation is that the interest you lose (because you only get the amount you pay, without any returns) should be equal to the premium of the base policy. This is why, in reality return of premium plans are 5-6 times more expensive than base plans. Absolute waste of money.