How To Renew A Life Insurance Policy?

With an insurance policy, you can protect your family's future against uncontrollable life occurrences while simultaneously living in the moment. The best thing is that term insurance plans in India may be inexpensively turned into tools for your family's financial stability. If the insured individual requires financial support after the policy has already expired, the set expiration date or provision in such insurance policies may make the coverage ineffective. In this situation, insurance renewals are necessary. 

What Is A Life Insurance Plan?

A life insurance policy is a legal agreement between a person and an insurance company. By the terms of the agreement, policyholders pay a certain amount as the insurance premium, and the insurer pays a set amount to the insured's family in the event of early death.

Why Should You Renew Your Life Insurance Policy?

• By renewing your insurance, you may extend your coverage without having to start the application procedure all over again.
• Additionally, you are not needed to take any additional medical exams or furnish any other information.
• If the clause was included in the initial policy, your insurance company is required to handle the renewal regardless of your medical history or modifications.

What Happens If a Policy Is Not Renewed?

• One essential aspect of purchasing insurance is remembering to pay the payments on time.
• The insurance policy expires if the premiums are not paid on schedule.
• Most insurance plans provide you with the option to renew the plan, which is a very important clause for any policyholder. 

How To Renew A Life Insurance Plan?

The following are the processes that you must know and check before you renew an expired life insurance policy:

1. Get in Touch with The Life Insurance Company

• Contacting the insurance company is the first step toward recovery.
• Notify them of your desire to reinstate the life insurance coverage and complete the necessary paperwork to move forward.
• You will be given the price quote or amount for the revival during this phase. All of the insurance policy's outstanding premiums are included in the appropriate amount.

2. Cover The Unpaid Premium Amounts

• The grace period provided by life insurance providers is typically 30 days. You probably won't have to pay any penalties if you settle the unpaid debt during this time.
• If you pay after the grace period but before six months have passed, you must pay the unpaid premiums and interest on them to keep your insurance policy from expiring.
• If the payment is paid after six months have passed, you will probably also be responsible for paying a late charge or penalty on top of the interest and premiums. The resurrection penalty is another name for this punishment.

3. Medical Exam

• The cost of a life insurance policy is mostly influenced by an individual's age and health. After your insurance coverage has expired, you could be required to provide a declaration of a healthy life.
• You would probably avoid any medical testing if the insurance coverage is reinstated within six months. However, if the same thing happens after six months, you might need to pay for a health exam.
• If you have a medical history or a pre-existing ailment, your insurance company may occasionally require you to be checked out.

4. When You Renew An Expired Insurance Policy, You Have A Lot Of Alternatives

• The steps listed above can be used to revive or you can pay the surrender fee and get your life insurance policy's fund worth.
• Alternatively, your insurance coverage could not expire if you have faithfully paid your payments on time for three years. In this case, you would be entitled to a smaller amount of guaranteed value.

Conclusion

To protect yourself or your loved ones now, you really must buy life insurance. As it protects your family's financial future in the event of your passing, life insurance is a crucial asset to have in your investment portfolio.

To guarantee that you and your loved ones always have protection, make sure to pay your premiums on time. If you miss one, you should still renew your insurance. Choose a direct debit option to guarantee that you never forget a due date.

Also Read: 

How To Choose The Right Life Insurance Agent?

Life Insurance Calculator: How Much Protection Would Be Enough?