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What Is Term Insurance?
We are prone to unforeseen risks that may sometimes occur without warning. To mitigate risks, you could plan and take suitable measures, such as saving and investing your funds in the right avenues to protect against financial pitfalls.
Insurance is an avenue that financially covers policyholders or their nominees against possible losses due to unforeseen circumstances. Term insurance protects the future of the policyholder’s family in case of their untimely demise.
The ethos of a term plan is to compensate nominee/s for the loss of the insured person’s earning capacity after their demise. The policyholder pays a premium in exchange for the benefits offered by the term plan. You can pay the premium for a life term plan monthly, quarterly, half-yearly, or annually.
Term insurance plans must be renewed so that the policy benefits are continued. Timely renewals ensure you do not face any difficulties during claims.. Insurers have also made it easier to purchase and renew their term insurance online.
If you are looking to buy online term insurance, you could check out Tata AIA term insurance.
If the premium payment for a term insurance plan is missed, there is a grace period of roughly 30 days with all insurance providers in which you can pay the premium, and the policy can be reinstated. Post the grace period, the life term plan goes into the lapsed stage.
If your term plan has lapsed, you stand to lose or face a reduction in the policy benefits depending on the type of policy chosen and the insurer. It is good practice to check the terms and conditions of your term insurance online so that you are well-informed about your policy.
The following reasons are why term insurance renewals are essential:
What Do You Lose When You Do Not Renew?
Term insurance plans have become essential currently as they safeguard our loved ones in the event of an unfortunate circumstance. You can buy and compare the premium for term insurance online and choose the policy that best suits your needs. Renewing your life term plan is as important as purchasing a policy in the first place because it makes sure that you continue to reap the same benefits of the policy during the time of purchase.
Missing out on policy renewals can adversely affect the benefits you enjoy and lead to your term plan’s termination. Reinstating your policy may require you to pay interest, charges, and higher premiums. Tax benefits might be affected, and most importantly, you lose the ability to file claims which was the main purpose of the life term plan.
It is essential to continue your term insurance coverage without interruption. Insurance companies remind customers about renewal dates of their term insurance online as well as offline. As policyholders, it is prudent to stay up to date on renewal dates and make payments. Payments today are hassle-free and can be made online for term insurance.
In case you are unable to pay the premium of your term plan. It is possible to ask the insurance company for an extension in the grace period, which can be approved without affecting your policy benefits. It is always beneficial to renew your term insurance policy to prevent ambiguity about your coverages and for the continued safeguard of your loved ones.
Insurance cover is available under the product.
The products are underwritten by Tata AIA Life Insurance Company Ltd.
The plans are not a guaranteed issuance plan and it will be subject to Company’s underwriting and acceptance.
For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.
Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.