Call Us

FOR EXISTING POLICY

Have query on premium, payout or any servicing need?

Call us:

1 860 266 9966

Monday - Saturday | 10 am - 7 pm IST

Call charges apply

Dedicated NRI Helpdesk:

+91 22 6251 9966

Monday - Saturday | 10 am - 7 pm IST

Call charges apply

FOR NEW POLICY

Want to buy a new policy online?

Call us:

+91 22 6984 9300

Give missed call for a call back:

+91 11 6615 8748

Monday - Sunday | 8 am - 11 pm IST


Exclusively for NRIs:

Call us:

Give missed call for a call back:

+91 11 4473 0242

Available All Days | 24 x 7

Language

Back Arrow Icon
Close Button
Back Arrow Icon
Close Button

Need assistance in choosing the right insurance plan? Get a call from our Expert.

Need assistance in choosing the right insurance plan?Get a call from our Expert.

+91 dropdown arrow

Select Plan dropdown arrow
  • Term plans
  • Saving plans
  • Wealth plans
  • Retirement plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in. T&C apply.

5 THINGS TO DO AFTER YOU BUY A TERM INSURANCE PLAN

11-June-2021 |

A term insurance plan is recommended for those looking for pure life coverage. As a policyholder, you can secure the future of your loved ones, preparing them for life’s unpredictability. Preferably bought at the start of one’s career, the policy acts as a financial cushion in tough times.

 

Before selecting a term policy, you might have performed adequate research and due diligence. From deciding between online term plans and offline plans to using a term plan calculator for estimating premium payments and the required coverage, you might have gone through comprehensive checklists. The goal was to choose a policy that will consider your financial goals, dependents, and income. However, the journey doesn’t end at selecting and buying the term insurance. To ensure that the policy serves its true purpose and meets the intended goal, there are a few necessary things to remember.

 

The following are five things you must do after buying a term policy:

 

 

1. Check the term policy

 

While the due diligence is done during the selection process, it is imperative to read and check the term insurance policy thoroughly on receipt. The fine print may hide details that you may have missed while purchasing. Check the inclusions and exclusions to ensure that you are aware and will not be denied the claim in the future. It is important to check for any errors or omissions as well. There could be errors in terms of the sum assured amount, the term of the policy, personal information, or typographical errors. Omissions related to certain inclusions or other details should be flagged off and reported when you receive the policy.

 

2. Inform the beneficiaries and safely secure the policy document

The purpose of the term policy is to safeguard the future of the beneficiary. This implies that it is imperative to inform your loved ones that you have bought the policy, and they should be taken in confidence about where the policy document is kept. The terms of the policy, namely, the inclusions, exclusions, the sum assured, the premium payments, and the duration of the policy, should be explained to them. They should also be informed about the claim process. If they need to initiate a claim, they will know exactly what is expected of them in terms of documents and procedure. The policy document should be kept in a safe and secure place. It is recommended to make photocopies of the policy and keep it at different locations. Also, maintain a digital copy, i.e., scan the policy and save it on a drive or cloud that can be easily accessed by you and your beneficiaries. This maintains the sanctity of the original document and will ease the beneficiaries’ burden when initiating the claim process.

 

3. Mark the premium payment dates


Mark the calendar and set a reminder for the premium payment dates to ensure that you do not miss a payment and it is made on time. Not renewing the existing term plan on schedule could cause the policy to lapse. Once lapsed, you may have to go through medical checkups to determine the present medical conditions, giving the insurance company grounds to reject the policy based on health issues newly discovered. To avoid this turn of events, you can opt for an auto-debit option. This means that the amount will automatically get deducted from the bank account of your choice on the date specified. Alternative ways to ensure that one does not miss this important date is to opt for direct debit via internet banking or set up standing instructions on a credit card.

 

4. Review the term policy and beneficiary

When buying a term policy, the parameters considered are your current income, financial goals, and dependents. With time, these parameters can evolve. Inflation can change your financial standing. Financial goals can be redefined. The number of dependents can increase from the time the policy was bought. It is possible that the existing coverage may not be sufficient to provide a secure future for your beneficiary. Therefore, it is important to review the term insurance policy periodically and monitor these parameters. If not enough, you can consider buying additional cover. Other than the coverage, another aspect that may require a change is the person nominated as the beneficiary. Over time, situations arise where you may feel differently about who the beneficiary should be. If there is a change of heart, you should call the insurance provider and request a nomination change.

 

5. Understand the claim process

In the unfortunate event of the policyholder’s death, the beneficiary should collect the sum assured amount from the insurance company. While every insurance company will have its unique claim process, the basic process is always the same. To initiate the claim process, the beneficiary will first need to inform the insurer and fill the claim form. Along with the form, the beneficiary will also have to submit the mandatory documents, such as the death certificate, autopsy report and police documents, and identity proof of the beneficiary, among other documents. Once the insurance company successfully verifies the documents, they will then pay the benefit payout.

 

The term insurance plan acts as a shield that protects loved ones in the event of something unfortunate happening to the policyholder. It helps the family with expenses and paying off debts, giving them an opportunity to start over. As a bonus, the term insurance plan gives tax benefits on the premiums paid under Section 80(C) of the Income Tax Act, 1961. Under Section 10(10)D, the death benefit amount is also exempt from tax*. If you do the due diligence on receiving the policy, communicate with your beneficiary with respect to the policy, periodically review the term policy to ensure it is aligned with your financial goals, do not miss out on premium payment dates, and you are aware of the claim process, your beneficiary should be able to claim the benefit payout without any complications if the need arises.

 

L&C/Advt/2021/Jun/0876

Get complete protection at affordable cost & tax benefits

+91 dropdown arrow
  • +93 Afghanistan

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.


 

Looking to buy a new insurance plan?

Our experts are happy to help you!

+91

Select plan
  • Term plans
  • Saving plans
  • Retirement plans
  • Wealth plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in

People Like You Also Read

What are the apt Investment Options for Women?
Read More
Why You Must Consider Buying Term Insurance With more Coverage
Read More
Why the 20s are Considered a Good Time to Buy Term Insurance?
Read More
The Importance of Term Insurance for Women | Tata AIA Blog
Read More
Why Term Insurance Claims Get Rejected? 5 Common Reasons You Should Know | Tata AIA Blog
Read More
Why is Term Insurance Necessary for Women Entrepreneur | Tata AIA Blog
Read More
Term Insurance for Housewives & Why is it Essential? | Tata AIA Blogs
Read More
What is Guaranteed Term Life Insurance and How Does it Work | Tata AIA
Read More
What is Family Term Rider | Tata AIA Blog
Read More
What is a Reduced Paid-Up Term Insurance Policy Option?
Read More

People Like You Also Read

What are the apt Investment Options for Women?
Read More
Why You Must Consider Buying Term Insurance With more Coverage
Read More
Why the 20s are Considered a Good Time to Buy Term Insurance?
Read More
The Importance of Term Insurance for Women | Tata AIA Blog
Read More
Why Term Insurance Claims Get Rejected? 5 Common Reasons You Should Know | Tata AIA Blog
Read More
Why is Term Insurance Necessary for Women Entrepreneur | Tata AIA Blog
Read More
Term Insurance for Housewives & Why is it Essential? | Tata AIA Blogs
Read More
What is Guaranteed Term Life Insurance and How Does it Work | Tata AIA
Read More
What is Family Term Rider | Tata AIA Blog
Read More
What is a Reduced Paid-Up Term Insurance Policy Option?
Read More
Website Logo Image Icon

Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

View all posts by Tata AIA Life Insurance

Disclaimer
  • 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