Voluntary exit from term plan could rob nominee of windfall, say experts

If automatic hike in sum assured is lower than increase in your liability, buy additional plan

Life insurers had an unfavourable claims experience during the pandemic after which reinsurers raised their premium rates. Many insurers will, therefore, hike their term premium rates in December. Some have used this as an opportunity to launch new versions of their term plans with added features.

Voluntary exit option

In its recently launched e-Term Plus Plan, IndiaFirst Life Insurance has offered the voluntary exit option. “Customers can, if they wish, exit the plan either at 65 or after paying the premium for 25 years. They will be given back all the premiums paid so far,” says Rushabh Gandhi, deputy chief