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Policy renewal is vital

It is not enough to buy a life insurance policy; to ensure its continuity, renewing the policy is essential
By OLM Desk | May 13, 2017

One of the most compelling reasons to take a life insurance policy is to make sure that your dependents are protected from financial uncertainties in case of any eventuality. Life insurance is the most powerful financial instrument, and its power is felt most by the insured’s financial dependents. Although the emotional loss of a dear one cannot be replaced, the financial support that is needed to move on with life is much appreciated by those facing such a situation. It is for this reason that life insurance is meant for the benefit of dependents and for the insured’s peace of mind.

Now, imagine a situation wherein you have taken utmost care in protecting the interests of your financial dependents with an adequate life insurance. You have factored in issues like the amount of money your dependents will need in your absence and the time period for which they will need this money. However, due to a lapse in attention, you fail to renew the policy in time, and for some strange and unforeseen reason you meet with an eventuality. The situation is most uncalled for, not only because of the outcome, but because, despite your best intentions the policy proceeds will not reach your dependents.

A life insurance policy is a contract, between you and your insurer. Under this contract, you pay the premiums regularly for a certain period of time and in return, the insurer provides financial security throughout this period. However, a life insurance policy lapses if you do not pay the renewal premium within the specific time period. Thus, it becomes very important to make sure that your life insurance policy is up-to date with the premiums paid in time.

In case of delays, make sure that you get the policy revived if possible, because insurers do allow revival of lapsed policies. It is the future of your dependents, do not leave it to chance—make timely renewal premiums on your life insurance.

Renewal checklist

  • Note down the policy tenure
  • Note the premium frequency
  • Note the policy renewal date
  • Set automatic premium payment facility with the insurer with instructions with the bank
  • Confirm premium payment by checking bank debit to your account
  • Check premium paid acknowledgement

 

olmdesk@outlookindia.com

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