Zero-cost term insurance is a type of life insurance that requires no premium payments from the policyholder. The insurance company invests the premiums, and the returns cover the policy's cost, including the death benefit. This can be a cost-effective option for individuals with a limited budget or those who prefer not to commit to regular payments.

While it offers cost savings and flexibility, it's important to note that zero-cost term insurance typically provides lower coverage and shorter terms compared to other life insurance policies. It also lacks a cash value component. Therefore, it might not be suitable for everyone, especially those seeking higher coverage or investment features.

Consider zero-cost term insurance if you:

• Have a limited budget for life insurance
• Prefer not to make regular premium payments
• Want to avoid a medical exam
• Are looking for short-term coverage

Zero-cost term insurance can be a suitable option for the following individuals:

1. Budget-conscious individuals: If you have a limited budget for life insurance, zero-cost term insurance can provide coverage without requiring ongoing premium payments.
2. Those seeking short-term coverage: If you only need life insurance for a specific period, such as during your working years or while paying off a mortgage, a zero-cost term plan with its shorter term and lower premiums may be a good fit.
3. Individuals with health concerns: Since most zero-cost term insurance plans don't require a medical exam, this option can be attractive for individuals with pre-existing conditions who might face higher premiums or be denied coverage with traditional plans.
4. People who prioritise flexibility: Zero-cost term insurance allows you to discontinue premium payments at a chosen point, providing flexibility if your financial situation changes.
5. Those who want a simple, no-frills policy: If you are looking for a basic life insurance policy without the complexities of investment components or cash value, a zero-cost term plan can be a straightforward choice.