Life Insurance Renewal: A Comprehensive Guide

What Is Life Insurance Renewal?

Life insurance renewal is the process of paying regular premium dues or extending a policy term to keep your coverage active. It prevents policy termination, maintains financial protection for beneficiaries, and preserves tax benefits.

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. In order to revive the policy by the due date, first read the policy document and/or speak with the insurer's customer care service for confirmation. If there are still issues, you can reach Policybazaar and politely ask them to inform you of the present status of the lapsed policy, the renewal costs, and also detail the procedure for the same.

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

Rajesh purchased a term 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. Below is a list of Policybazaar choices for renewal of your life insurance policy:

If accessing from a PC/Desktop:

If you are on a desktop, scroll to the top of this page and type in your Policy Number and Date of Birth from your existing policy documents. You will then be given a QR Code which will direct you to the Policybazaar in-app Policy Renewal page to renew your policy.

If accessing from a Mobile:

Your contact number as well as a link for the payment gateway can be sent to you through SMS or through WhatsApp. You will be taken to the Life Insurance Policy renewal detail page on Policybazaar application.

You can check the premium payment details and then select your desired mode of payment to pay the premiums and complete the renewal formalities.

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 is successful, the renewal amount gets settled with your selected insurer in 3-5 business days.

Also read: How to Pay Your Life Insurance Premiums Online ?

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 ensures 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 insurance policy has lapsed and you wish to reinstate it, you may have to go through a new underwriting by the insurer to confirm there have been no new illnesses or conditions that you've been diagnosed with which might be of concern to the insurer.

Continued Cover: If you continue to pay your premiums on schedule and renew your policy within its lapse period, then you'll have ongoing protection against death, diagnosis of incurable or life-threatening illnesses, and disability.

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?

These are the likely consequences of your decision not to renew your life insurance policy:

Surrender of Coverage: With the policy expired, you will not be protected any longer. If any of your family members dies unexpectedly, they will be the ones who cannot be financially helped.

Forfeiture of premium: Money spent on premiums won't be returned. It's a loss since the premium is not refundable.

No Death Benefit: After the policy has expired, a sudden death of the deceased will mean that the beneficiaries are not given the full amount that should go with the death of the insured if the life insurance had worked.

The Risks of Getting Life Insurance Again: If you choose to get another life insurance policy, the insurer may require you to undergo a medical examination, which may be a problem since you are quite aged.

Period before the insurance becomes effective: Your life insurance may start at a predetermined period of time in the future, so during that time you will be vulnerable to life risk without insurance.

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 life insurance 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 change for most of you, and it may also mean additional dependents and your financial situation being altered. You should check whether your future spouse has insurance already and what coverage is needed for you to stay adequately insured.

Home Purchase: Buying a home has been a major part of people's lives in general, and a financial decision of some sort. You should be certain at the same time about the coverage, given that your current life insurance would be a way to ensure your home loan is paid if the worst happened to you. This way, your family would be relieved of the burden of 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!

Renewing your Life Insurance policy on time ensures that the policy remains in force always and benefits your family financially anytime during the policy tenure. You can revive your policy even if it is already lapsed by paying all outstanding premiums with interest thereon, during the revival period of the policy as determined by the insurer. Several advantages, like continuity of coverage and avoiding loss of benefits, ensure timely renewal and with Policybazaar, you are sure of a simple renewal process which is quick and convenient.

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