Life insurance renewal
Life insurance renewal

How To Life Insurance Renewal Policy?

Protecting your loved ones while you are away is one of the most important concerns because life is full of unknowable variables. No matter how much you plan or how many measures you take, you can never be totally ready for the future. On the other side, Life insurance renewal plans give you the peace of mind that, regardless of the cause of your death or absence, your family will be financially secure. The finest feature is that you can use a term insurance plan in India to give your family financial stability without going over budget.

Let’s look at the guide to understanding the relevance of your existing term plan, advice for renewing your lapsed policy, and other considerations if it is soon to expire. Let’s find out more information about Life insurance renewal!

The following list of reasons demonstrates the need of timely renewal of your life insurance policy.

  1. The best way to maximize your tax deductions A key benefit of getting a term insurance policy is the tax benefit. According to Section 80C of the Internal Revenue Code of 1961, the premiums you pay for your term plan are tax deductible. You are eligible for a tax exemption of up to 1.5 lakh rupees under this provision. You won’t be able to claim tax advantages for the year you failed to pay the required premium, though, if you don’t renew your term insurance policy.
  1. There won’t be any medical exams; if you don’t renew your term plan and then buy term insurance, you have to start over. This suggests that you will have to undergo medical testing, which might be uncomfortable. As a reason, choosing a timely renewal over getting a new plan is advised.
  1. Avoid paying higher insurance premiums: The insurance company will calculate your term insurance premiums based on your age, health, lifestyle, gender, weight, and other criteria. Your term plan rates may be affected by your smoking habits, but that doesn’t mean you can’t still purchase one. You will pay less for a term plan because when you apply, you are young and in good health. The advantages of already paid premiums as well as the discounted rates will be lost if you choose not to renew your term plan.
  1. Make sure the family’s financial stability is never under danger: Term insurance’s main objective is to provide your family with financial security in the case of your passing. But the plan loses value if you don’t renew your insurance. In order to prevent your loved ones from going bankrupt in the event of your untimely passing, it is imperative that you Life insurance renewal coverage. You should therefore give both buying and renewing your term insurance coverage equal priority.
  1. Take use of all policy benefits: Term insurance plans are types of life insurance that only cover risks and do not contain savings. As a result, you will forfeit the benefits of all your already paid payments if you do not renew your term insurance policy. If you keep your policy active and renew it on time, your family can gain from the benefits of term insurance.

How To Life Insurance Renewal Policy?

Life insurance renewal
Life insurance renewal

The actions listed below must be followed if you want to Life insurance renewal policy:

  1. You can “Life insurance renewal” at the top of this page.
  2. The selections on your right side must be used to choose your life insurance company.
  3. You will then be taken to the website where you must input your “Policy No” and “Date of Birth” after that is complete.
  4. Next, press the red “Proceed Button” button.
  5. The option to renew your policy will then be available, along with all of your policy’s specifics.
  6. Simply pay the renewal fee to keep your coverage in effect.

What Is The Procedure, If Your Policy Get Lapsed?

Life insurance renewal
Life insurance renewal

Sadly, if your life insurance coverage has expired or lapsed, you will need to take the actions listed below.

Communicate With Your Life Insurance Company

The first step in Life insurance renewal is getting in touch with the provider. Give them a call and let them know you’ve decided to reactivate the life insurance coverage. Then, finish the relevant paperwork. You will be provided with a revival quote or an estimate of the cost during this step. The appropriate sum shall include all premiums payable under the insurance policy.

Pay all Your Due Premium Amount

Spend all of your owed premium money.
The policyholder must pay all past due premiums (from the first unpaid premium to the revival date), interest on past due premiums, and all applicable taxes and levies in order to restart a lapsed term life insurance policy. If the policy is reactivated, the insurance company might in some cases even ask for another medical exam.

Don’t Overlook Medical Examination

The cost of a life insurance policy is mostly determined by an individual’s state of health. If your insurance coverage has expired, you can be asked to submit a declaration of good health. If your insurance coverage is renewed within six months, you almost probably won’t be required to undergo any medical exams. After six months, if the issue still exists, you could have to pay for a medical exam.