About ICICI Term Insurance Renewal
As a policyholder, one primary point to keep in mind is paying the premium amount on a regular basis. If the premium amounts are not paid at a specified time, the insurance policy will lapse. Most insurance plans allow you to renew the policy, which is a very important provision for any policyholder. In case you have bought an ICICI term insurance plan with a term of 5 years, the plan will reach maturity in 5 years and will no longer offer coverage after that. You may renew the plan in order to increase the coverage for the next 5 years, provided that the plan allows for renewal.
What is Renewal Premium Payment?
Renewal premium is the amount you are required to pay on a regular basis to keep your policy active and to continue availing of all the benefits offered under the ICICI Term plan.
Why ICICI Term Renewal is Important?
If the term insurance premium payment is missed, there is a grace period of 30 days in which you can pay the premium amount and the plan can be reinstated. After the grace period, the ICICI Term insurance plan lapses.
In case if ICICI plan has lapsed, the policy benefits will be reduced depending on the policy type chosen, and the insurance company. Always check the T&Cs of the Term plan online so that you are well aware of your policy.
Following are the reasons why ICICI Term insurance renewal is important:
Reduction or Discontinuation in policy benefit
If the ICICI Term insurance plan reaches the lapse phase because of non-payment of the premium amount, you will lose the death benefit and any other supplementary benefits that you may have availed of with your plan. Add on or rider benefits such as personal accident cover, critical illness cover, or disablement cover may terminate if your plan lapses. Some insurers do reinstate the lapsed term insurance plans, but it differs from company to company. You may also be required to pay an interest sum to have your insurance plan reinstated, depending on the T&Cs of the insurer.
It is important to renew your term plan within the provided time because if you miss the renewal and the plan lapses, it may not be possible to again file a claim with the insurer. The nominees or the beneficiaries will not receive the sum assured amount in case of any unpredictability. So it is a smart idea to always be updated with due dates of ICICI Term insurance renewal and facilities for paying online term plan premiums to secure your family’s future.
The premium amount remains constant at the time of policy renewal. Sometimes, several reasons such as an increase in age, changes in medical history can lead to a large premium size for the same plans.
KYC and Medical Test
If you renew your ICICI Term plan, then you do not have to submit the KYC documents again. Moreover, there is no requirement to undergo a medical test all over again. However, if the term plan lapses and then cannot be renewed, the process will be similar to purchasing a new policy. You are required to undergo a medical test and submit KYC documents.
ICICI Term insurance plans are exempted from tax deduction up to Rs. 1.5 Lakhs u/s 80C of the Income Tax Act, 1961. You can also claim tax savings benefits with riders such as critical illness, exempted up to Rs. 25000 u/s 80D of the ITA.
How to Renew ICICI Term Insurance Policy?
You can renew the ICICI term insurance policy from the official ICICI website in a few easy steps.
Visit the ICICI Official website
Then Click on ‘ICICI Term Insurance Renewal’
Enter the required details such as the registered mobile number and policy number
Check the policy details and premium amount
Proceed for the payment using debit card/credit card, Net-banking, or UPI
Disadvantages of failing to Renew the ICICI Term Insurance Policy
As a policy buyer, you may face a few disadvantages in absence of renewing the policy:
The main objective of purchasing life insurance is rendered useless. If the plan lapses before the life assured needs it, then he/she will not be able to avail of the lump sum or other benefits. In order to get sufficient protection, renewal is important.
Once the policy lapses, the policyholder cannot avail of all the policy benefits. The more the delay in ICICI term insurance renewal, the more the interest is charged on the premium amount, making it costlier.
Term insurance plans are a smart way to secure your finances. However, the tax-saving benefits that are applied to term policies will longer be available once the plan lapses.