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Business News/ Brand Stories / Guide to Renew Your Term Insurance Policy: Here’s All You Need to Know Before Your Policy Expires

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

Term Plans are essential for providing financial security for your family, and usually offer no monetary benefits at the end of their term.

Guide to Renew Your Term Insurance PolicyPremium
Guide to Renew Your Term Insurance Policy

Term plans are some of the most popular life insurance policies in India, and for good reason. They are affordable, provide great coverage for the price, and offer attractive tax benefits as well. So, when their ‘term’ is about to expire, should you just go ahead and get your 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.

What Happens When Your Policy Term Ends?

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. 

What Does Term Insurance Renewal Mean?

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, the insurance company will not refuse to renew your term insurance policy if the option to do so was included in the initial policy. This comes in handy during some key situations. Let’s understand with an example:

Assume that you experience a heart attack just before the policy expires. If you do not renew your insurance, you might find it difficult to find a similar term plan again. Your premiums will go up due to your changed health status. Hence, having a renewable term plan can go a long way in ensuring that your family enjoys continued financial protection. 

What is the Process to Renew Your Term Plan?

You can renew your term plan in two main ways:

  • By Having Automatic Payments Set: Automatic Payments can be a boon for those who find it hard to keep a track of all the different due dates. You will get a message from the insurer reminding you to keep sufficient balance in the bank, and that’s it. Your policy will be automatically renewed, given that you have this mode set up.
  • By Manually Going To the Insurer’s Website: On the other hand, you can log into your account on the insurer’s website, find the policy that you currently hold and then renew it there. 

Other than these two ways, you can connect with the insurer or your trusted agent and ask them about the renewal procedure. 

Is Renewal the Only Choice?

No. You can simply let your life insurance coverage expire and forego coverage if the term of your policy is about to end. Some people do prefer to go that route, particularly if their kids are grown and self-sufficient financially and they have enough saved up to support their partner or spouse. But if this is not the case, you can look at a couple of options:

  • Convert your term plan into a whole life insurance policy.
  • Get a different type of life insurance policy.

The choice between these depends entirely on your requirements and preferences. 

For the first one, you will need to check with your insurer if they offer the conversion of a term plan into a whole life policy. It can be beneficial if you need continuous life coverage. Alternatively, go with the second choice. Consider the changes in your life. Perhaps you don't need as much life insurance because you have more savings. Or perhaps you require more because your family is larger. It's possible that the policy you should have chosen ten, fifteen, or twenty years ago isn't the greatest option for your needs now. This could be a chance to realign your life coverage with your needs.


To ensure continuous coverage, finish the renewal process before your policy expires. Even if your policy term ends, you might have a grace period in which you can revive the policy. When your insurance is renewed, you can continue to be protected against potential dangers and financial losses. Lastly, renewal gives you the chance of reassessment. This is when you can make sure that your insurance policy stays relevant and offers the essential protection for life's uncertainties by being proactive, assessing your coverage, weighing your options, and renewing your policy on time.

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same.

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Published: 25 May 2024, 11:46 AM IST
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