RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Why Renewing Your Policy is as Important as Buying It

down-arrow
Why Renewing Your Policy is as Important as Buying It
October 30, 2017

Investing in an insurance plan is a huge financial decision. An insurance plan provides coverage against unfortunate events such as death, diseases and disability. In case of any untoward incident, a policy provides a sum of money, which may be used to secure your financial future. You may use the amount to meet the cost of treatment or any other financial obligations such as household expenses or repayment of existing debt.

Importance of renewing insurance plans

There are numerous financial institutions offering insurance policies in India. You may analyze the benefits and features of such plans and select the best policy based on your needs.

Many individuals fail to renew their insurance plan once the policy matures. Renewing an insurance plan is as important as buying it as you will not receive any benefits upon maturity of the policy. After the maturity of your policy, in case you suffer from an unfortunate event, such as a disability, you will not be eligible to claim any benefit. Renewal of your policy, therefore, provides an opportunity to extend the coverage before your existing policy lapses.

Not renewing your insurance policy has numerous disadvantages. The following points highlight the drawbacks of non-renewal of a life insurance policy.

1.Defeats the purpose of insurance

An insurance plan provides coverage and secures your financial position in case of an unfortunate event. Failing to renew your policy indicates that your policy is no longer valid. In an event of your sudden demise, your loved ones will not be entitled to receive the death benefit. They will be left with numerous financial liabilities. Similarly, you will have to bear huge treatment expenses in case you are diagnosed with a disease. Renewing your insurance plan helps you remain protected at all times, thus securing your financial position.

2.It is expensive

Insurance providers take numerous aspects into consideration while determining the premium amount. Some factors include age, gender, present health condition, lifestyle, and family medical record. Those in the younger age group are considered as low-risk individuals and hence, have to pay low premiums. Similarly, those with no medical history of ailments and diseases may enjoy a lower premium.

Failing to renew your policy will mean that you will lose out on low premium benefit. Though you may consider renewing your insurance plan after your policy terminates, you may have to pay a higher amount.

3.You lose out on tax benefits

Besides securing your financial future, you may also avail of tax benefits on premiums paid under Section 80C of the Income Tax Act, 1961.You may claim tax deduction up to INR 1.5 lakh per financial year. Failure to renew your insurance indicates that you may no longer enjoy such tax benefits.

Many have a pre-conceived notion that renewing an insurance plan is a cumbersome process. On the contrary, the process has now become quick and simple, owing to the advent of digitalization. You may renew your policy through the Internet, thereby enjoying a high degree of convenience and flexibility. Besides, you do not have to provide any additional information or go through any medical tests while renewing your policy. This makes the entire process quick and hassle-free. You may, therefore, renew your insurance plan quite easily and secure your financial future.

However, if you have not invested in an insurance plan yet, you may compare the best insurance policies in the market and choose one that suits your needs.

Show Full Article
Hide Full Article

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Preserving Your Investment: How New Tax Rules Affect Real Estate Sales Before 2024

Preserving Your Investment: How New Tax Rules Affect Real Estate Sales Before 2024

Discover how new tax rules affect real estate sales before 2024, impacting capital gains, deductions, and property transactions. Stay informed for smarter decisions.

Financial Freedom for Women Entrepreneurs: Unlocking Success with the 50-30-20 Strategy

Baby Steps to a Secure Future: Financial Planning and Wealth Management

Charting New Beginnings: Financial and Mental Well-being for Single Parents

Essential tips and strategies for enhancing both financial and mental well-being for single parents, empowering you to thrive and support your family.

Charting New Beginnings: Financial and Mental Well-being for Single Parents
Sahiba Madan: Building Dreams Previous
Priyanka Bose: Chasing the Dream Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches