If you are a frequent traveller to foreign countries, you need to keep a constant check on your necessary travel documents, their expiry date, and their renewal timelines. For example, a passport is a mandatory document if you want to travel outside India. It generally comes with a validity of 5-10 years, after which you need to renew it. Renewing it on time ensures that you have a smooth journey without any hurdles. You have to follow certain steps, submit relevant documents, and pay the required fees to get it renewed.
On a similar note, if you own a life insurance policy, you need to renew it on time to avail yourself of its benefits and keep your coverage active. If you fail to do so, your policy can lapse, which can expose you and your loved ones to financial distress.
In this article, we will discuss the process of renewing your life insurance policy and make it easier for you. So, let’s start!
What is Life Insurance?
Life insurance is an agreement signed between you and the insurance company. Its main aim is to provide financial protection to your family members when you are not around them. It pays them a fixed sum of money known as the ‘sum assured’ in case of your sudden demise during the policy term.
In addition to this, it also helps you achieve long-term financial goals, such as retirement planning, funding children’s education, wedding expenses, saving for the future, etc.
You are required to pay a premium fee to ensure continued life insurance coverage and benefits.
How Do You Renew Life Insurance Policy Online?
Online platforms have made the policy renewal process simple and easy. When you purchase a life insurance policy, you get the option to customise your premium payment duration as per your budget and convenience.
The premium payments can be made in 3 ways -
?Single Pay Option
It allows you to pay your premium amount as a lump sum in one go during the policy purchase. Once the premium payment is done, your policy keeps renewing on its own, providing you with coverage till the end of the policy duration.
?Limited Pay Option
It allows you to pay your premiums within a limited time duration, instead of till the end of the policy term. You have to make premium payments as per chosen payment frequency (yearly, half-yearly, quarterly, monthly). As long as the premiums are paid on time, your policy will keep renewing every year.
Under this option, the premium needs to be paid until the end of the chosen policy period. You can pay your premiums yearly, half-yearly, quarterly, and monthly. If you pay your premiums duly, your policy will keep renewing every year.
To pay the premium and renew your policy online, you simply need to follow a few steps -
- Visit the insurance company’s website. Login to your account and choose the premium payment option.
- Enter your policy number along with your registered mobile number and other details.
- Choose the mode of premium payment - internet banking, UPI, debit card, credit card, credit card EMIs, e-Wallets, etc.
- Once the payment is done, your policy will get renewed instantly.
Premium payment can also be done through digital or e-wallets like Google Pay, Paytm, PhonePe, etc. through your wallet balance or the UPI facility. You need to provide only the necessary policy details to pay the insurance policy premiums.
You can also choose the auto-debit option or standing instructions to not miss out on your premium payment. This ensures that your premiums are paid duly and your policy does not lapse. Remember to put your standing instruction on a bank account and not on a debit/credit card as cards have a set expiry date.
Importance of Making Timely Premium Payments
Life insurance is basically a financial safety net for your loved ones. It helps them remain financially afloat and continue their current lifestyle, even if you aren’t around. To keep your policy active, you have to duly pay all your premiums.
If you miss your premium payment due date, your policy might lapse and you can potentially lose out on the coverage and benefits. Besides this, it will also be a significant loss of your hard-earned money that you have paid as premiums over several years.
In case you fail to make your premium payments on time and your policy ends prematurely, you get the option to revive it (within 2-3 years from the original premium due date). On the other hand, you also get the option to buy a new life insurance policy. However, there are a few conditions you have to fulfil in both cases - you have to undergo medical tests, documentation, etc. again. And, if you have developed some new disease or a medical condition, there are chances that your proposal might get rejected or the premiums might be expensive.
All in all, if you want to stay away from such hassles and problems, keep a regular check on your premium payments. Make sure they are paid duly if you want to ensure continued life insurance coverage and benefits.
Life insurance is a major part of your investment portfolio. It provides financial security in times of unforeseen emergencies. So make sure you pay your premiums on time and renew your policy duly to ensure that you and your loved ones enjoy consistent protection.