What Happens When I Terminate My Term Insurance Plan? | | PayBima

The safety and comfort of our loved ones is of utmost importance to all. And to make their life better, we do many things. It is for the sake of living a good life that we plan for our future and make several investments. One of the things that we should do for our family is to buy an insurance plan at the right time. Also, when you consider this idea, you should choose the best insurance policy that suits your needs. This will help your family get financial support in your absence so that they can continue to live with the same level of security and comfort.

What is a Term Life Insurance Plan?

As the name of life insurance suggests, term insurance is for a specific period of time, unlike term life insurance. This means that if the policyholder dies within the control of the policy, the insured family will get to study and other benefits. Compared to all other types of life insurance, term life insurance offers more coverage with lower premiums. You can get long-term insurance that provides coverage for partial or permanent disability to policyholders.

Things You Can Do After Closing Your Term Insurance Plan

Many wonder what will happen if they survive through term life insurance. Well, the simple answer to this question is that you will get nothing. Education is provided only if you die within the term of the insurance policy. However, what you can do in such situations is mentioned below:

1. Change the schedule to a regular schedule

There are term insurance plans that will allow you to convert to a permanent policy. However, the transfer process may vary from one insurance company to another. If you can afford to pay the premiums again, term insurance may be the best option for you. However, you should look for a flexible option when buying long term insurance.

2. Term Plan with Return of Premium option

While shopping for term insurance, you can look for term insurance that comes with a Return of Premium option. This allows you to get all the money you paid for, as long as you live long enough. You should know that the premiums for such term plans are much higher than regular term insurance policies.

3. Buying a new policy

If you are in good health and can afford the premiums, you can purchase new insurance. It will cost you less than converting a time plan to a permanent plan. However, you will be required to undergo a medical examination and submit all the documents you were required to submit when purchasing your previous policy.

4. Remove the time order

If you have saved enough money for your family and they can manage without you, you can simply opt out of the insurance plan.

Read more: Best Insurance Plans in India 2022

Why does buying term insurance make sense?

Many people would say that buying term insurance is not a good idea because you don’t get anything if you survive the term. Well, looking at the other side of the coin, it comes with several benefits. Let’s discuss some of them.

Much clearer than other policies

When you are in the process of buying term insurance policy is very easy compared to buying other insurance policies. You won’t find difficult sentences or terms and conditions that will confuse you. The only thing you need to do without fail is to pay what you need every time.

The salary is low

When we compare term plans with other types of insurance, the premiums are lower; thus much cheaper.

Better guaranteed money

You can get a lot of support for very little money. The type of support your family will receive after you die will not be close to the amount you pay.

Financial security

When you are suddenly absent from your family, and if you are the sole breadwinner in your family, it can be very difficult for family members. However, when they get help, it can bring peace to their lives.

It can be changed

You can customize your settings according to premium payment options. You can choose whether you want to pay monthly, quarterly, semi-annually, or annually.

The rider benefits

Apart from the regular coverage, your family receives from the time plan, several advantages can be obtained by purchasing a rider. There are different types of riders such as Income Benefit Increase, Accelerated Death Benefit Increase, Critical Illness Benefit Increase, Additional Benefit Waiver, etc.

If you want to buy the best insurance in India, you need to compare and find the one that suits your needs. And because of this, you can go to a website that offers long term insurance from different insurance companies. You can also use the term insurance plan calculator to find out what premiums you may need to pay in the future.

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