Guide to Renew Your Term Insurance Policy: Here’s All You Need to Know Before Your Policy Expires

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term insurance plan renewed? Are there any other options that you can look at?This is one aspect of term plans that doesn’t see a lot of coverage, since term plans are usually taken for longer periods. But when this period ends, you are left with a choice to make. Let us understand this very choice and see what your options are, and how should you go about analyzing them.

Let’s begin.Term Plans are essential for providing financial security for your family, and usually offer no monetary benefits at the end of their term. So, when your policy term ends, your coverage expires and you do not get any returns, unless you have opted for a return of premiums term plan. Additionally, since you no longer pay any premiums towards a life insurance plan, the tax efficiency of your portfolio also takes a hit.

You no longer get the tax benefits under Section 80C for your premiums. Lastly, and most importantly, your family loses the financial safety net that your term plan provides, leaving them vulnerable to financial hardships in your absence. Hence, continued life coverage is crucial, and you should start considering renewal before your policy expires.

Very simply put, Term Insurance policy renewal means either extending the coverage period of your existing policy, or purchasing a new term plan to enjoy the many benefits it provides. Let's say you have a term insurance policy with a five-year term and the option to renew. In this case, you can choose to extend the plan for an extra five years at the conclusion of the policy's tenure upon maturity.

If your policy allows for renewal, you also have the chance to increase the length of coverage. Note that you might have to undergo a medical test again before the policy is renewed. Also,