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Life Insurance Policy Renewal

Mar 20, 2020 | 4 months ago | Read Time: 4 minutes | By iKnowledge Team
Life Insurance Policy Renewal

Even though India has the second-largest population in the world, the number of Indians who have a life insurance cover is very low. In fact, 75% of Indians do not have a life cover at all.[1]

Such alarming statistics underscore the need for life insurance more so now than ever before.  A life insurance policy forms an integral part of one’s basic financial planning, as it secures your family, financially, in unforeseen circumstances.

Thus, those without insurance covers should make it a priority to avail of one. Those who already have insurance covers should pay particular attention to the date of maturity of the policy to ensure timely renewal.

If you already have a life insurance policy, here are 6 things you should keep in mind about renewal of your policy.

  • The need for life insurance renewal

The key purpose of your life insurance policy is to provide a contingency plan for you and your family. Certain life insurance policies have a predetermined time period for which they are active.  Whether you receive a payout upon outliving that time period or not, it makes sense to renew your policy at the end of this period. If you do not apply for renewal, you remain uninsured for the rest of your life, and your family is left financially vulnerable. The whole point of insurance is hence lost if it isn’t renewed.

  • Grace Period

There are two situations in which you can and should apply for renewal. Either your policy lapses or the policy term ends. In either case, there’s usually a time period from the date of lapse or maturity in which you can apply for the renewal of the policy. This is known as the grace period. In case of a lapse, there is a specific period of time within which you can pay your overdue premiums with applicable interest/penalties and renew your policy. This grace period can vary from insurer to insurer.

  • Medical report

Whether you will need a new medical test report for the revival of your life insurance depends upon your insurer. With the passing of time and age, your medical conditions may also change. Your mortality risk increases, and hence insurers could ask for a fresh medical test. If there is an in-built option for renewal with your policy, you might not need a new test. If you are a non-smoker and do not have major health issues, you could get a much lower rate of renewal premiums.

  • Policy revival offers

Many a time, insurers offer rebates for renewal of policies. Try and align your renewal with such offers, and you could get yourself a good deal.

  • Renewal vs new policy

At some instances, one may be tempted to opt for a new policy entirely. However, opting for a new policy comes with its own set of drawbacks.

Cost – The cost of a completely new policy altogether could be more than renewal of your existing policy. Cost is another major aspect of policy renewal. If you decide to go in for a whole new policy once your current policy term ends, it will likely cost you much more than the first policy did. Although applying for the renewal of a terminated policy might mean a higher premium, it will definitely save you the extra costs associated with a completely new policy.

Simpler and Hassle-Free: All the paperwork and tedious administrative processes that come with a new policy can be avoided entirely if you opt to renew your existing policy.

  • Conditions for revival

Every insurer has certain predetermined terms and conditions for the renewal of a policy. It is best to go through these while applying for the policy itself since it is one of the prime factors to take into consideration for choosing your policy. You should pay attention to terms and conditions related to insurability, payment of overdue premiums, rate of new premium, date of revival and more when selecting your life insurance policy for the first time.

Long story short, it is prudent to be apprised of the renewal policies of your life insurer before buying a policy and to make sure you renew your policy when required.

Aegon Life Renewals

Aegon Life Insurance Renewals

Upon maturity of your life insurance policy, you can seamlessly apply for renewal online.

Incase of lapse of policy too, Aegon Life Insurance renewals are also possible. You can apply for revival within the stipulated time period, subject to the following conditions.

  • Satisfactory evidence of insurability
  • Full payment of all the policy premiums due

Aegon Life iTerm Plus

If you haven’t gotten yourself an insurance policy yet, you should consider Aegon Life’s term insurance. To know more about the plan they offer or their benefits, checkout Aegon Life website.


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