Life Insurance Renewal: A Comprehensive Guide

What Is Life Insurance Renewal?

Life Insurance Renewal restarts a lapsed policy after paying the pending premiums and certain penalties/interest rates to the insurer. If your life insurance policy has lapsed because you didn't pay the premiums on time, you can usually start it again within 5 years. You can easily check if your policy can be revived during this time by checking your policy document or contacting the insurer's customer care service. Furthermore, you can contact Policybazaar and request that they let you know the status of the lapsed policy, renewal charges, and procedures.

Let’s understand this with the help of an example:

Rajesh purchased a term life insurance policy when he was 18 years old for coverage up to 38 years of age. He paid ₹525/month as a premium until he stopped paying after 2 years due to a financial crunch. He was given a grace period of 30 days, but failed to pay his premiums even then. Soon after the grace period was over, his policy lapsed. After a month, he contacted Policybazaar to help him with the renewal of his term insurance policy. He then followed the procedure to renew his plan and paid the dues along with the interest and renewed his policy without hassle.

How To Renew A Life Insurance Policy From Policybazaar?

Several ways are available on the Policybazaar platform for processing life insurance premium payments. Here are the options you can choose from when renewing your life insurance policy through Policybazaar:

If accessing from a PC/Desktop:

If you're on a desktop, go to the top of this page and enter your Life Insurance Policy Number and Date of Birth from your current policy documents. A QR Code will then be generated which will direct you to Policybazaar's in-app Policy Renewal page, where you can renew your policy.

If accessing from a Mobile:

You can enter your contact number and receive a link to the payment gateway via text message or on WhatsApp.

You will be redirected to the Life Insurance Policy renewal detail page on the Policybazaar app. There, you can review the premium payment information and then proceed to choose your preferred payment mode to pay the dues and complete the renewal process.

Alternatively,

Step 1: Visit the official website of Policybazaar and click on Renewal.

Step 2: Select ‘Life Renewal’ from the drop-down list.

Step 3: Choose your insurer from the list of insurer options provided on the screen.

Step 4: Enter your Mobile Number/Application Number/Policy Number and DoB mentioned in the Policy documents.

Step 5: Enter the verification code, review the policy renewal information and proceed to choose your preferred payment mode and pay the renewal dues to complete the process

Note: After the payment success, the renewal amount gets settled with your selected insurer in 3-5 business days.

Benefits of Renewing a Life Insurance Policy

Let us take a look at the benefits of renewing a life insurance policy before it expires:

• Waiting Periods: If you renew your policy on time, it makes sure that all of your pre-existing diseases or conditions that have a waiting period in the policy or the moratorium period (3-year insurance rule) are met at the beginning of the policy and don't start over when it ends.

• No New Underwriting Risk: If your policy has expired, the insurance company may need you to go through a new underwriting process to make sure that the policyholder hasn't been diagnosed with any new illnesses that the company should know about.

• Continued Cover: By paying the premiums on time and renewing the policy before it lapses, you can receive continued coverage against risks like death, diagnosis of terminal or critical illnesses, and disabilities.

List Of Insurers That Offer Life Insurance Renewal Through Policybazaar

Here is the list of insurers that offer life insurance renewal through Policybazaar:

What Happens If You Do Not Renew Your Life Insurance Policy?

Here is what could happen if you do not renew your life insurance policy:

• End of Cover: The policy will no longer cover you, and your loved ones would be left without financial protection in case you suffer an untimely death.

• Loss of Premiums: The premiums you paid will be lost because they are not refundable.

• No Death Benefit: If you suffer an untimely death after the policy lapses, your beneficiaries won't receive the death benefit.

• Risk of Reapplying: You might need to reapply for life insurance to get cover again, which could be more expensive, especially if your health has changed.

• Possible Waiting Period: You might face a waiting period before the new cover becomes active, leaving you temporarily unprotected.

What Are A Few Things To Consider Before Renewing Your Life Insurance Policy?

Here are a few points to consider if you plan to renew your life insurance policy:

• Profile Updates: You can check your current profile information, and you can change things like your email address, phone number, or anything else when you renew.

• Riders: Some insurers allow you to add new riders to the existing term plan, at the time of policy renewal. You can check with your insurer, and if allowed, add the required riders to enhance the policy’s base cover.

• Job Change: When your income rises due to a new job or career change, your lifestyle and expenses often change, too. Because of the higher costs, you should think about reviewing your life insurance. If something happens to you, your family could face financial difficulties.

• Marriage: Marriage is a major life event that can impact your finances and may increase the number of dependents. Find out if your spouse already has insurance and if you need more coverage under your own policy.

• Home Purchase: Buying a new home is a big financial commitment. Make sure that your current life insurance policy will pay off your home loan if something happens to you. This will free your family from having to make mortgage payments.

• Parenthood: Raising a child comes with significant expenses. Look over your life insurance policy and think about getting more coverage so that your child will have a safe financial legacy in case something unexpected happens.

Why Should I Renew Life Insurance Policy From Policybazaar?

• You should renew your life insurance policy from Policybazaar as the renewal process is much simpler and easier.

• You can easily renew by using your mobile no./application no./policy no., and date of birth.

• 24/7 access allows you to renew your life insurance from anywhere, at any time, without any paperwork.

Wrapping It Up!

Timely life insurance renewal keeps your policy active and protects your family's finances at all times. You can revive your plan, even if it has expired by paying any outstanding premiums and applicable interests within the revival period set by the insurance company. Renewing on time keeps your coverage active and helps you avoid losing benefits. Policybazaar make it easy and quick to renew your policy, so you don't have to worry about it. If you keep up with your life insurance renewals, the protection you planned for your loved ones will provide cover without any breaks.

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