Term insurance plans in India are becoming increasingly popular considering their benefits on financial security. It can reduce the financial burden on your family in case of your unexpected demise. It is considered one of the financial investments to help benefit your family because it is increasingly affordable and can provide a huge sum assured for the policy tenure.

However, the benefits are assured only when the policy is active. Therefore, it is important to decide to ensure the benefits if required before the term insurance expiry date arrives. So, here is a detail on what you can do when your term insurance expires.

Before we get started, let us understand what the term policy means.

What is a Term Life Insurance Plan?

A term policy is a traditional life insurance plan that provides a lump sum death benefit to your family in the event of your unexpected demise during the policy term. Insurance providers offer customizable term plans to help modify the features based on your income and financial needs. For instance, you can opt to receive the death benefit as a regular income, increase the sum assured at different milestones in your life, etc.

If you want to ensure the benefits at any time during your life, it is important to have the term plan in force. Does term life insurance expire? Certainly, yes! And it happens when the policy term ends.

3 Options on What You Can Do When Your Term Policy Ends

As your term plan reaches the expiry date, you need to revise your decision and take the necessary steps to keep your policy active if necessary. So, here are 3 options to help you in this regard.

• Extend the term policy tenure - When the term policy reaches the expiry date, you can extend the policy term based on your requirement by renewing it at the end of the term. For example, you might have purchased the term plan for 7 years until retirement.
  
  

  However, due to certain financial constraints and family commitments, you might have decided to work for another five years. As there is a dependent family on your side, you will have to extend the policy tenure for the next 5 years.
  
  

  When you buy an online term plan, you can work on the renewal process conveniently and cost-effectively being at your place. And, if you feel you have a family member who can take over the responsibilities after a certain number of years, you can opt for the return of premium option. You will get a refund of the premium paid during the policy term when the plan matures.
  
  

• Convert the term plan to a whole life term insurance plan - A whole life term insurance plan is a term policy that provides the sum assured to your nominee in case of your unexpected demise at any time during your life. The policy tenure will not be restricted to a certain age or the number of policy years.
  
  

  If you feel that your family is forever dependent on your income for their survival, then converting to a whole life term insurance plan can help you as desired and until required. And, if your family cannot handle a lump sum benefit wisely, you can opt for the regular income payout method to optimise the benefits.
  
  

• Purchase another term policy - While converting the term policy for your whole life or renewing it for an extended policy term can be beneficial, the premium will increase based on your age and other health considerations. In such cases, purchasing another term policy can be a profitable option.
  
  

  Therefore, when you buy term insurance, you can compare the different product solutions based on their features and cost to ensure which will satisfy your financial needs and purchase it.
  
  

  And, when you purchase our Tata AIA term insurance policy, you can utilise the online term insurance calculator to estimate the premium rate. You can try different combinations of the sum assured required and the policy tenure to arrive at the most affordable premium. Our customer service executive team can also assist you by explaining the products and features to make a smart purchase decision based on your financial needs and steady flow of income.
  
  

If you have decided to buy term insurance, start investing in it early in life to ensure a huge sum assured at an affordable premium rate. And, when the premium is available at a nominal rate, you can choose a longer policy tenure. So, calculate your financial needs, understand your priorities, plan your objectives and choose a term policy. Then, compare term plans based on the insurer's reputation and claim settlement ratio before deciding on the product.

Conclusion

Purchasing a term policy can be the ideal option to secure your family in case of your unexpected demise. It can provide the funds required to clear off debt, pay for accomplishing family money goals, etc. However, you must ensure the benefits at any time of your life if required. So, you can either renew and extend the policy term, convert it to a whole life insurance plan or purchase a new term policy based on your financial needs and different sources of income. And, when you buy term insurance, try to purchase it online to read through the policy options, compare different solutions and get the best product comfortably and cost-effectively. Finally, as you purchase the term policy, stay invested and your premium regularly to ensure the benefits at any time!

L&C/Advt/2022/Jul/1539