You have been taught time and again to practice mindfulness and stay in the present moment for a healthy and peaceful living. However, you must think about the future when it comes to financial security, for which term insurance makes an intelligent choice.
With a term insurance plan, you can not only enjoy the present but also safeguard the future of your family against life events beyond your control. The best part is, a term insurance plan in India can become the instruments for your family’s financial security at nominal premiums. If you have an existing term plan due for renewal, read these essential aspects to rethink before renewal.
Features and Benefits of Tata Aia Life Insurance
Tata AIA provides an array of life insurance plans tailored to your requirements. If you’re looking for a term life insurance policy that gives you financial security, then the Tata AIA term plans can be one of the great options to choose from. Here are a few guidelines to help you with your term plan:
- Any individual who is between 18 to 70 years old can apply for the insurance plan.
- To apply for an insurance policy, the person should either be self-employed or salaried.
- The maximum term for Tata AIA policies can be for whole life (Upto 100 years)
- The minimum amount assured with Tata AIA is Rs.50 Lacs for individual policies with no maximum limit subjected to underwriting.
- If you wish to apply for the Tata AIA insurance plan, you must provide documents such as your identity proof, age proof, income proof, address proof and PAN number.
Factors to Consider When Renewing a Life Insurance Policy
- Check out revised renewal terms - All term insurance providers send reminders at least 45 days in advance before your policy lapses. So, with life insurance renewal online, you should be careful about the essential details in their renewed policy: sum assured, previous claims if made any, no claim bonus, changes in any clause and others. In case of any discrepancies, you should approach your life insurance provider to get these details rectified, thereby making the policy payment on time.
- Review insurance needs and life stages - Life changes, and so do your plans. When you decide to renew your term life insurance policy, take note of your short- and long-term goals. For instance, you might plan to get married, start your family, purchase a property, reserve cash for medical emergencies, or take care of your parents.
Ensure that your policy renewal allows room to cover your financial needs before the next cycle.
- Review insurance coverage depending on inflation - You must also consider the economic aspect of the country before renewing your term plan. Hence, it is imperative to project the income required to meet a fixed requirement (Say ten years down the line). So, the best option is to edit the goal calculators. If you are confused about the amount of desired life cover, take a note of your annual income, and multiply it by 10. E.g., If you have an income of Rs.5 Lacs p.a, your insurance coverage would be Rs.50 Lacs.
- Coverage duration - Investing in a long-term life insurance plan can reap plenty of benefits. Depending on your future goals or change in medical condition from the last renewal period, check out if you need to extend your policy duration for added protection in the future using the Tata AIA calculator.
- Understand the claim assessment process - Now that you have completed a term before renewal, it’s time to understand how the claim process works. For that, you can directly contact your insurance provider, who will guide you about the necessary list of documents if the need arises. It is also essential to know the claim settlement ratio for which you can consult family, friends, previous beneficiaries or even an authorized agent.
- Reassess premium payment frequency - Life insurance providers offer multiple ways to pay premiums, and it is interesting to know how you can save on multiple fronts. For instance, if you received a raise or a promotion or made profits in your business, try to make annual payments instead of monthly payments. This will not only give you peace of mind but can also offer decent discounts on renewal.
Safeguard Your Family’s Future Today
Life insurance is one of the safest and simplest ways to preserve your family’s future without adding to your financial overheads. While term insurance plans do their job to protect you against life’s pitfalls, you must be honest and transparent during the entire policy duration. That means if there’s a change to your health condition that can impact your policy, you must declare them during the renewal itself to retain the benefits for your family and ensure a successful claim if a future need arises.
With a term insurance policy, you can plan your financial future well and never have to think about a financial outage again!