But only buying a term plan.is not enough. You have to ensure you pay all your premiums on time to keep the plan active. Non-payment of premiums can cause the term insurance policy to lapse. If your insurance policy lapses, it is important that you renew your term insurance policy in time to ensure that the financial security net for your family remains intact.
Reasons why renewing your term insurance policy is as important as buying it:
1. Ensure continuous financial security for the family: The main reason for getting term insurance is to financially protect your family when you are not around anymore. However, when you fail to renew your policy, the plan loses its purpose. Renewing your term insurance policy is important to protect your loved ones from facing a financial crisis in case of your unfortunate demise. Hence, you should pay equal importance to buy and renew your term insurance plan.
2. Avail full policy benefits: Term insurance plans are life insurance plans with a pure risk cover and no savings component. Hence, when you fail to renew your term insurance plan, you fundamentally lose out on the benefits of all the premiums you have paid. If you keep your policy active and renew it timely, your family can get the term insurance policy benefits.
3. Avoid higher premiums: When you buy term insurance, the insurance company considers your age, medical condition, lifestyle, gender, weight, etc., for determining the premiums. Your smoking habits also affect your term plan premiums; however, that does not mean you cannot have a policy. If you buy a term plan. at a young age and in sound health, your get lower premiums because of lower risk. In case you fail to renew your term plan, you lose out on the low premiums and also miss the benefits of the previous premiums paid. Further, if you buy term insurance at a later stage in life, you will get the same assured for a much higher premium due to increased risk.
4. No medical tests: When you do not renew your term plan. and buy term insurance later, you have to start afresh. This means that you have to undergo medical examinations, which can be a hassle. Hence, it is better to opt for a timely renewal instead of purchasing a new plan.
5. Avail full tax benefits: A significant benefit of buying an. term insurance policy is the tax benefit. The premiums you pay for your term plan. qualify for tax benefits under Section 80C of the Income Tax Act, 1961. You can get up to ₹1.5 lakh in exemption under this section. But when you fail to renew your term insurance policy, you will not able to claim tax benefits for the year in which you have not paid the due premium.
Apart from these benefits, renewing a term plan. is an easy and quick process. PNB MetLife allows you to buy a term plan. and renew it smoothly and quickly. without any hassle or additional documentation.
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
PNB MetLife India Insurance Company Limited
Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
IRDAI Registration number 117 | CIN U66010KA2001PLC028883
For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: firstname.lastname@example.org or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.
Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers!
IRDAI is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint.