Since childhood, you may have wanted to create your own haven. A place to call your own - your house! It provides a safe and comfortable place for your family. Midway through owning the house, you decide to renovate it and convert a part of it into a rental property. Now, not only does it continue to be your place to live, but it also generates rental income. This has turned it into a better investment option. It shows how an initial purchase meant for long-term security can change into a profitable investment.
Now, let’s compare this with a life insurance policy. You pay regular premiums for your financial security. And with a Term Plan with Return of Premium (TROP), you get all your money back if you outlive the policy. Sounds too good to be true, right? Well, what if you can turn your current term life insurance into a plan that refunds all your premiums? Is it actually possible?
Let's get to the article and see if you can make this switch, potentially without any extra cost.
What Are Pure Term Plans And 100% Refund Of Premium Plans?
Pure-term plans are like the bread and butter of life insurance. You pick a term and pay a fixed premium, and if something happens to you during that term, your beneficiary gets a payout. Simple, right? But if you outlive the term, there is no payout.
Now, out of that bread, let’s make a sandwich. The 100% refund of premium plans, also known as Pro Bono Term Plans, go a step further as they mix the benefits of a pure term plan with a little something extra. Under this plan, you get the same coverage. But if you decide to exit the policy within a specific period set by the insurer, you get all your premiums back.
What Is The Difference Between A Pure Term Plan And A Pro Bono Term Plan?
Let’s compare how a Pure-Term Plan and a Pro Bono Term Plan differ from one another:
| Pro Bono Term Plans | Pure Term Insurance Plans |
|---|
| What does the plan provide? | Pro Bono Term Plans operate similarly to regular term plans but with the added option to opt-out if the coverage is no longer needed. You can get a refund of your premiums (excluding GST) if you decide to exit the plan. |
| When can you get your premiums returned? | The insurer will return your premiums if you leave the plan within the designated time frame. |
| What are the benefits offered? | These plans provide a death benefit along with the option to exit at intervals specified by the insurance company. |
| How flexible are they? | They offer the flexibility to exit the policy at certain points without incurring a financial loss. |
Why Can I Not Transfer An Existing Pure-Term Plan Into A 100% Refund Of Premium (Pro Bono) Term Plan?
Sadly, you can't switch your pure-term plan to a Pro Bono Term Plan. This is because term insurance plans are essentially long-term contracts between you and the insurer. Once you have a policy in place, changing or transferring it isn't an option.
Pure-term plans and Pro Bono Term Plans differ fundamentally in structure and benefits. Converting one to the other would mean altering the entire policy framework, which just isn't feasible after the policy is issued. How would you feel if your existing policy could suddenly change all its terms and conditions?
When the insurer issues a policy, it undergoes a thorough underwriting process based on the chosen plan. Transferring plans would require a new underwriting process. This implies that a new policy application is required.
Every insurance type has specific terms and conditions that are established at its inception and cannot be altered in the middle of the policy.
Can you imagine how complicated things would get if we could alter these contracts after they have been signed? And to avoid that, conversion isn’t on the table!
Documents Required To Purchase A 100% Refund Of Premium (Pro Bono) Term Plan
The documents required may vary depending on the insurance company. The following is a list of common paperwork required when purchasing term insurance:
Proof of Identity
Aadhaar card, passport, voter ID card, driver's licence, etc. can be submitted as ID proofs.
Proof of Age
A PAN card is an example of documents that serve as proof of identity and proof of age, respectively.
Proof of Address
You can either submit your passport, voter ID card, bank account statement, power bill, telephone bill, ration card, or even a government pension order.
Proof of Income
A CA's certificate proving your income for the previous 3 years, your employer's certificate, your most recent pay slip, Form 16, your income tax returns, etc. can be shown as your proof of income.
Other Documents
To support your application, insurance providers may request additional information.
Please note this is just an indicative list. The actual documents may vary across insurers.
To Conclude
Unfortunately, transferring your existing pure-term policy to a 100% refund of premium Pro Bono Term Plan isn't possible. Term insurance policies, once issued, cannot be changed or transferred to another type. Every policy has its own set of guidelines that are set out from the very start and cannot be changed later. This is why it is advisable to check your options. This assures that you select the best plan that meets your requirements straight away without having to worry about making adjustments down the road.
November 17, 2025
5 mins read
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