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    Why is it Important to Renew your Term Insurance Policy?

    Last Updated On 22-03-2021

    Family is everything and their security of utmost importance. One effective way to safeguard your loved ones' financial future is to buy a term life insurance policy. However, it is important to regularly pay your term insurance premiums to avoid lapse of the insurance cover. But in case, you miss out on paying your term policy premiums or your tenure expires, and the policy lapses, the insurer gives you an option to renew the plan. Renewal of an insurance plan is as important as buying a term insurance policy.

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    Importance of renewing your term insurance policy:

    • Continued financial security of the family: Renewing your term insurance policy ensures that your beneficiary is financially protected, against any uncertainty. However, when you fail to renew the cover and the policy lapses, your family is not equipped to face any eventuality in your absence. This defeats the whole purpose of buying a term plan in the first place. Hence, you must pay equal importance to renew your policy as you do to buying a term plan and choosing a sum assured.
    • Extended coverage: Term insurance plans do not have a savings component. Hence, when the policy matures, and if you fail to renew your insurance, you essentially forgo the benefit of all the premiums you paid before. However, if you choose to renew and extend the term plan coverage, your family remains assured for a longer term in case of your premature death. Moreover, the premiums for term plans are minimal. So, you will not face a severe financial burden.
    • Avoid extra expenses: When you buy a term plan, your life cover and premiums are seriously impacted by your age, medical history, lifestyle habits, etc. And if you are younger, you pay low premiums. However, when you fail to renew your insurance plan, you might have to go through the entire buying process again. Your insurer will ask you to undergo the medical tests again. And, in all of it, you will likely end up paying a higher premium, and other charges. Also, in case you stop paying premiums before the policy matures, you will lose out on the value of all the premiums paid before.
    • Tax benefits: Premiums paid for term plans are exempt from taxes under Section 80C of the Income Tax Act, 1961. If you do not pay your premiums and your policy lapses, you do not get any tax exemption for the amount paid. This will increase your taxable income in the financial year, burdening you with a greater tax duty. Moreover, your beneficiaries also get tax advantage on the death benefit of a term insurance plan under Section 10(10D) of the Income Tax Act. But if you fail to renew the policy, you or your beneficiaries will not get any tax advantage.

    That said, a term insurance plan has become a necessity, and so has the term insurance renewal. However, not all insurance companies let the term insurance renew. Hence, it is critical to check your insurance contract terms beforehand, especially before you default on your premiums or miss the renewal date. In case your insurer offers you the renewal option, you will get the same sum assured value and full life coverage as your original term plan. But insurance companies allow you to renew the term plan only up to specific age.

    Conclusion

    In all, a term plan is a critical asset in today’s uncertain times to provide the much-needed financial security to your family. That is why it is extremely important to ensure consistent coverage by renewing your term insurance plan well-in-time. With PNB MetLife, you can opt for a term plan that fits your budget and provides comprehensive coverage. You can also renew your term insurance cover easily online without any hassle within minutes.

    Know more about Long Term Savings, Term Insurance & Term Plan by visiting PNB MetLife website.

     

    Disclaimer:

    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 Mera Term Plan Plus is an Individual Non-Linked, Non-Participating, Pure risk premium Life Insurance Plan | Product UIN Number – 117N126V01 ^Maximum maturity age 99 years for all options (except Joint Life cover option/Life Plus Health Option). Life Plus Health Option/Joint Life Cover Option: 75 years (applicable for both Primary and Secondary life).

    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: indiaservice@pnbmetlife.co.in 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.

    AD-F/2020-21/700

    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.

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    Disclaimer

    Collapsed Expanded

    As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at claimshelpdesk@pnbmetlife.com or indiaservice@pnbmetlife.co.in. You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.

    PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance PlansTerm PlanProtection PlansLong Term Savings Plans , Retirement Plans & Child Education Plan.

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