Importance of Term Insurance Renewal

Introduction

Modern life is often fraught with stress, and a plethora of health concerns. Thanks to the advancements in healthcare technology and medicine, the average quality of life and lifespan are steadily increasing. However, this does not eliminate the need for safeguards that can protect you against uncertainties such as medical emergencies or accidents. One such safeguard is a life insurance or term life insurance plan that acts as a financial safety net for an individual’s dependents or family in the event of that individual’s untimely demise. Such insurance plans may have a certain predetermined expiry date or clause, which can render the policy useless if the insured person needs the financial back-up after the policy has already lapsed. This is where insurance renewals come into the picture. Read on to understand more about term insurance plan renewal.

About Renewal of The Term Insurance Policy

As an insurance buyer, one primary point to remember is paying the premiums on a regular basis. If the premiums are not paid on time, the insurance plan lapses. In order to rectify this, most insurance policies allow you to renew the plan, which is a very crucial provision for any policyholder. In case you have purchased a term insurance plan with a tenure of 5 years, the policy will reach maturity in five years and will no longer provide coverage after that point. You may renew your plan in order to extend the coverage for the next five years, given that the policy allows for renewal.

Importance of Term Insurance Policy Renewal

If the policyholder faces a life-threatening emergency very close to the date of expiry of the term insurance plan, they may have to face the challenge of trying to get a new policy if they have not already renewed their existing plan.

By renewing your policy you are effectively getting the coverage extended without having to go through the whole application process again. You are also not required to undergo any medical tests again, nor do you have to provide any additional information. Regardless of your medical history or changes, your insurance provider is obligated to process the policy renewal if the provision was present in the policy originally. The only applicable criteria when it comes to renewal is the age of the policyholder, which must fall in the age bracket specified. Having a good history of timely premium payment supports your case and if your policy has not yet lapsed you can easily get your policy term renewed, even for a yearly renewable term.

Disadvantages of failing to renew the policy

As a policyholder, you may have to face some disadvantages in absence of a policy renewal:

• The main purpose of buying life insurance is rendered pointless. If the policy lapses just before the policyholder needs it, he/she will not be able to avail the benefits or lump sum. Besides, the policy nominees receive the death benefit in case of an eventuality. In order to get adequate protection that will actually be useful, renewal is key.

• The more you put it off, the more you may be charged. For term life insurance, the insured is expected to pay the premium amounts in exchange for the benefits that are set keeping the policyholder's needs in mind. Once the insurance plan lapses, the insured cannot avail of these benefits. The more the delay in renewal, the more interest is charged on the premium making it a costly affair.

• Term insurance plans are a good way to invest and protect your finances simultaneously. However, the tax benefits that are applicable to term insurance policies will no longer be available once the policy lapses.

How to Renew Your Term Insurance Policy at Bajaj Markets

Health insurance renewal online at Bajaj Markets is a hassle-free process. Just follow these simple steps:

1. Go to the ‘Health Insurance’ section on the  Bajaj Markets website and select the ‘Renew Now’ option.

2. Fill in the requisite details such as existing policy information and your date of birth.

3. Check the health insurance premium amount for the renewed policy along with the terms and conditions.

4. Proceed to pay the premium amount online.

5. And done! You will receive the renewed health insurance policy in no time.

Documents required to renew Term insurance plan

1. Identity Proof: PAN card, Passport, Aadhaar card, voter ID, etc.

2. Age Proof: Passport, Driver license, Aadhaar Card, birth certificate, etc.

3. Address Proof: PAN card, ration card, Aadhaar Card, government utility bills, Passport, etc.

4. Proof of Income: salary slips (from the past 3 months at the time of policy renewal), bank statements (from the past 6 months at the time of policy renewal), form 16, Income Tax Returns of the past 2-3 years.

6.Passport-size photos

Remember:

When the policy is renewed for a particular time such as a yearly renewal term, the coverage and sum assured will be the same as that provided by the original policy. If the plan is renewed before the policyholder turns 80, then the coverage will protect them beyond the age of 80 years old.

Conclusion

Today, purchasing life insurance to protect yourself or your loved ones is an absolute must. With online platforms like Bajaj Markets, policy renewal is a fast, easy and hassle-free process. You can also choose from a variety of insurance plans from this one-stop platform and compare the top options to find a plan that suits you the best. Prevention is better than the cure, so renew your term insurance policy today!