One can never take life for granted. From being taught not to touch the hot stove to looking left and right before crossing the road, we inculcated a lot of measures to keep ourselves and our loved ones protected. One such precaution we undertook was to purchase a life insurance policy. A contract where the insurer promises to insure your nominees with a death-benefit in exchange for premium payments.
Today, it is imperative to own life insurance. It could be a term plan or a money back policy, or even an Ulip; the heart of the matter is: own one. Now, while buying one is important, life insurance renewal is important as well. Yes, failing to renew your insurance on time is a loss you should not suffer. These reasons will help illustrate the point.
- Defeats the Purpose of Insurance
If you fail to renew your plan on time, your insurance will not stand and if something happens to you during that time, your family will not receive the stipulated lump-sum benefit.
You buy insurance to keep your loved ones safe. From paying the premium amounts to selecting the sum insured, you put in a lot of effort thinking and researching before zeroing down on a particular plan. Do not waste it by forgetting to renew policy.
- It is expensive
When you buy a life insurance policy, you pay the insurer a regular amount called premium. Many factors such as your age, height, medical history, and income are taken into consideration before zeroing in on your premium amount.
If your policy terminates due to non-renewal, you lose the premium benefits. While you can renew the policy at a later stage, it is expensive and can involve you paying interest as well. Do not suffer a financial setback by failing to renew your policy.
- You lose out on Tax Benefits
While insurance is one of the best ways to secure your family’s financial future in your absence, it offers you tax benefits as well which are quite handy each year when you file your tax returns.
Everybody loves tax benefits. You get to save money which you can put into the bank on your go on that shopping spree you so wanted to go on.
Having insurance, especially the one for your life and health, is one of adult life’s hallmarks. It is a sign that you care for yourself and your loved ones and take steps to secure their future. Renewing your insurance is not a long process, there is an online life insurance renewal—it is quick and simple. Do not miss out on renewing your insurance, after all, precaution is better than cure.