​When you stop paying the premium amount of your term policy with-in due date, your term insurance policy lapses. Upon the lapse of the policy, benefits associated with it also become null and void. After the policy lapses, its benefits would not be provided to your dependents in case of premature death of the policyholder and leave your family in the whirl of financial troubles.

However, if you have a caring attitude towards your family, you will want to ensure their financial protection after your untimely demise and for this, you need to keep your term plan active by paying premiums regularly. The procedure for policy revival depends on the company and the policy that you choose. A lapsed insurance term policy is typically allowed within a specific time period and is subject to revival on the insurer’s decision.

Types of Policy Revival

Here are some basic types of revival for your term insurance plan.

Ordinary Revival

If the policy revival is effected within the six months from the date of first unpaid premium, no health check-up is asked by the term policy company and your term plan is revived just by paying the pending premium amount plus the interest.

Revival on non-medical basis

In order to avail revival of your term policy on non-medical basis, the sum assured should not surpass the specific limit for non-medical assurance by your insurer. There is a sum assured band where low sum assured range term plans revival will be on the non medical basis.

Revival on medical basis

High value sum assured term plans will be revived by undergoing medical check ups again. In such cases, your term policy can be revived after medical checkups, if it can’t be revived under ordinary revival or non medical basis. The medical requirements asked by your insurance company will depend upon the sum assured you want to revive.

How can you revive a lapsed term insurance?

The sole purpose of buying one of the best Term insurance plans in India is to provide financial protection for the family when you are not there to support them. Your paid premiums in term plan insurance go in vain when it lapses due to non-payment of premiums in stipulated time period. When you choose for policy revival, it’s a fresh contract between you and your insurer. The insurance company may impose new terms and conditions during the revival.

Listed below are the phases which are vital to help you revive your policy.

Grace Period

The grace period is a period of time after the premium due date during which a policyholder can pay the premiums and this period does not carry the risk of losing coverage. Usually, 15 days grace period for monthly premium payment mode and 30 days grace period for quarterly, half-yearly, and annually premium payment mode is provided to pay the pending premium amount.

This grace period provides you the option to pay your term policy premium. During this period, all the policy benefits including riders taken remain valid and applicable.

Reinstatement Period

If you have missed the premium payment, even during the grace period, the policy will lapse. After the lapse of the policy, an insurer is not liable to pay the death claim in case the policyholder dies during that period.

After policy lapse, you have the option to revive your policy.

The reinstatement period comes after the grace period. The benefits mentioned under the policy, however, don’t remain valid during this period, but insurers provide an opportunity to revive your policy during reinstatement period. The option to reinstate a term policy is not guaranteed under law, so this feature may vary from one insurance company to another. The entire process and documentation procedure for policy revival vary from one insurer to another.

How to Reinstate a Policy Reinstate a Policy

Contact your insurer and ask about the payment due for reinstating the policy. Inquire them the process to reinstate.

Complete all the paperwork honestly, and make the premium payment to your insurance company.

After reinstating the policy, makes sure all the premium amount are paid with-in a stipulated time to avert the policy from lapsing.

Note:The premium rate while reinstating your policy may differ from the one that was earlier defined to you during the purchase of the policy.

Source: http://www.suggestinsurance.com/blogs/reviving-a-lapsed-term-insurance-policy/

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The decision to buy term plans is one of the smartest ones you can ever take. But how do we go about it? Where to buy it from and what kind of a process is to be followed? suggests that the best way is to choose right online term insurance policy in India because they offer lower possible premiums without compromising on the value of sum assured or other services associated with an insurance product.


To help you buy the term insurance policy, is an ideal website that will not only guide you when you are seeking information, but also help you to make a purchase which is well informed and not biased. Follow these tips to make a wise investment:

1) Different Products

The website offers you a plethora of Term products from the leading insurance company’s. Find out detailed information about each and every term policy before you buy the best term life insurance plan for you and your family.

2) Calculate Premium

Offers a premium calculator that would need your basic information like age, gender, smoking habits, etc. Once you enter the details, it will calculate the premium and different plans that offer such a premium based on which you can take a decision about which policy to buy. Term insurance plans in India can majorly be differentiated on the basis of premiums and this calculator can help with this most important aspect.

3) Compare Term Insurance Plan

It is important to compare each and every term plan based on their features, benefits,premium amount, terms and conditions. Only once you are satisfied about a particular plan on all the benchmarks, you may proceed without any apprehensions. There are lots of legal or insurance terminologies when it comes to insurance products and the website has made an effort to provide you information in as simple a language as possible.

4) Take Expert Opinion

If you still have some queries or confusions regarding any particular plan, you can always get in touch with the expert panel on that would be glad to assist you in every possible manner at your convenience. Our experts can help you in solving your queries, updating you with more information and even suggesting you better options as per your needs. We strive to help you buy the best term life insurance plan.

5) Documents

Once you make up your mind about buying a particular plan, team will furnish details about some of the basic documents of the insured, that are required to make the purchase. The list of such documents is as follows:

  • Date of Birth Proof
  • Address Proof
  • ID Proof
  • Bank Statement of at least last 6 months

Any other documents would depend on individual insurance companies’ requirements and they can ask you for the same in the subsequent correspondence. Having these documents handy and scanned on your system can make the buying process faster and smoother. Also, be ready with your banking details or credit card/debit card for buying term plans.

Hope these tips will come handy and help you in making the best decisions for you and your family. The most important thing to do is to compare term insurance policy plan and only then make your decision. assist you from the beginning till the end and makes your online insurance buying experience hassle free and smooth.Try it now!

Source: http://www.suggestinsurance.com/blogs/tips-to-buying-term-insurance-policy-with-suggestinsurance/

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Most of us know that life insurance premium is the price paid for buying an insurance cover. It could be a one-time charge, yearly, half-yearly or monthly payment. Depending upon the type of policy you choose you will have to make the premium payments, in order to keep your policy activated. But there are several premium related aspects that are less understood. What determines discounts offered on life insurance premiums? What are the different types of life insurance premiums, payment frequency, and tax benefits, etc? Basic knowledge of these is necessary to be able to choose and maintain your life insurance policy.

An insurance policy is a contract between the insurance company and the insured who promises to pay a certain amount as a premium to the company and the company in returns commitments to pay the cover amount to the beneficiary in case of any mishap and there is a loss of life.

Premium varies across plans, policy terms, sum assured and the age of the insured person. The mode of premium payment depends on the type of policy chosen and the payment option that company offers to you. While determining the insurance premium for your plan, the insurance company takes various factors into consideration like age, lifestyle, profession, tenure, profession, etc. A general thumb rule is higher the risk, more would be the premium costs.

Factors to determine life insurance premium:

Mode of premium payment

Ideally, when an individual chooses monthly payment it incurs extra administrative costs. So the best way is to choose the annual mode of payment that will reduce the premium costs. The additional charge increases cost thus ultimately increasing your premium amount.

Start Early

Being an early bird lets you cut down the costs on premiums to great extent. At a younger age, you’re medically fit & physically sound. So, it bounds to offer high premium at reduced costs.

Tenure

The longer the policy tenure, lower will be the premium. Therefore, opt for longer duration policies as it allows you to build the required corpus for smaller premiums.

Rider Optional

Riders may give you additional benefit but they come with higher charges and increase your premium costs. You can lower the premium costs by opting for those riders that you actually need.

Stay fit

Healthy staying means lesser problems. People who tend to smoke or drink will have a riskier lifestyle. Companies will bound to increase the life insurance premium costs. So, staying fit is the key for a lower insurance premium.

Profession

Many industries like oil & gas, fisheries, mining, firefighting, etc. have risky working conditions. So, if you’re associated with any such profession, your life insurance premium will be higher than normal working conditions people in a corporate set-up.

Type of policy

Group insurance plans are always beneficial for the company as well as the policyholder. In a larger group, the policy risk is uniformly spread across, that minimizes the chances of loss for the insurance company and ensure more security to the policyholder. what is life insurance Hence, the life insurance premium is always lower when compared to an individual plan.

At the time of premium payment, most policy contracts provide for a ‘grace period’, which gives the policy holder an additional period of time after the due date for the paying the premium. During this period, he or she can pay the premium without any extra charges and the policy will still continue to be in force.

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There has been a tremendous shift in the socio-economic demographics in India post liberalization. The vast Indian middle class has not only been the driving force but is also bearing the heat of it. Nuclear families, scaling up of living standards, costly education, medical facilities have made it important for one and all to make wise decisions when it comes to savings and investments. After all, savings and investments together guarantee a safe future. Of the various instruments out there in market, insurance has emerged as one very important and safe way to plan and secure future. As the amount one pays as premium for child plans insurance policy is not taxable, a lot of people took it up as a tool to avoid or minimize the income tax. However, today the insurance has come a long way from there. Insurance, as a sector, has grown enormously over past few years and today it is not limited to insurance of the bread earner of the family.

Insurance has taken various forms and there are plenty of options to choose from. child plans insurance is one such important option. It is gaining momentum in a big way. Child insurance and child investment plans help individual and families not only in saving their income but are also looked up on as right investment for children' future. The child insurance policies in India are somehow different from traditional insurance plans. While an insurance plan provides death cover for the proposer, this has some additional advantages which make it a compelling offer. In the case of a child future plan, not only is the nominee provided death benefit but it also ensures continuation of premium for the benefit of child. More importantly, child plans also gives the investor the advantage of a higher life cover as compared to a traditional plan. People from the trade advice younger parents to go in for a plan as mortality charges would be lower. While taking a child insurance policy, one should have premium payment tenure of at least 10 years for a plan failing which it can be slightly expensive.

The financial institutions, which offer child insurance in India, are plenty in number and one has a varied range of plans to choose from. Chosen carefully, a child plans policy helps one to save systematically so that one can secure the future needs of his child. Be it higher education, his or her first home or any other requirement, one can always be there for his child when he or she needs him. To sum it up, one should definitely go for it as the old saying going, early bird catches. Plan early and get handsome returns.

Source: http://www.sooperarticles.com/finance-articles/insurance-articles/insurance-policy-your-child-978976.html?

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