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

Term Insurance Lapse and Its Effect on Future Coverage and Premiums

down-arrow
Effects of Term Insurance Policy Lapse on Coverage and Premium
December 05, 2023

Life is a delicate balance of planning for the best while preparing for the worst. Along the journey, term insurance serves as a fortress of protection for your loved ones. It protects their financial well-being when you’re not there to provide for them. But what if this safety net were to vanish? Term insurance lapse is a reality that can cast a shadow on your family’s future. In this comprehensive guide, we will explore the intricacies of term plan lapse, its profound impact on your future coverage, and the ripple effect it can have on your insurance premiums.

  • The Foundation of Term Insurance

    Term insurance is a simple yet powerful financial instrument. At its core, it promises to provide financial support to your family in case of your unfortunate demise during the policy tenure. By paying regular premiums, you secure a predetermined sum that becomes a lifeline for your loved ones. It provides the financial stability they need to navigate the challenges that may arise in your absence. Should you let your policy lapse, it can have far-reaching impacts that disrupt the protection you have chosen for your family.

  • Understanding Term Insurance Lapse

    A term insurance lapse occurs when you fail to pay the required premiums within the stipulated time frame. It can lead to the termination of your policy, which means the coverage you once secured for your family is no longer in force. While this may sound like a minor setback, the consequences can be profound and long-lasting.

  • The Domino Effect

    The primary reason for opting for term insurance is to ensure your family remains financially secure even if you’re not around. Imagine the impact of your term insurance policy lapse. The safety net evaporates, leaving your loved ones vulnerable to financial hardships during a challenging time. The emotional turmoil and the burden of managing without your support can be overwhelming.

  • Ripple Effect on Insurance Premiums: The Cost of Neglect

    Once your term plan lapses, you have the option to reinstate it. However, the premium amount will likely change. Insurers often consider various factors, including the insured’s age and medical history, when calculating premiums. Trying to reinstate your plan when you’re older or after a medical event could mean paying significantly higher premiums. Neglecting your term insurance in the present can have a long-lasting impact on your finances, even beyond the lapse period.

  • The Value of Consistency: Upholding the Promise of Insurance

    Term insurance is a promise you make to your loved ones. It’s a pact that ensures their well-being even when you’re not around. Allowing your term insurance policy to lapse undermines this promise. It disrupts your family’s security and introduces financial uncertainty into their future.

    Life has many unexpected twists and turns. Term insurance becomes a financial safety net your loved ones can rely on during these uncertainties. However, a term plan lapse can leave your family without financial protection. The ripple effect of term insurance lapse impacts your family’s future coverage and your financial planning.

    By understanding the consequences of a term insurance lapse, adopting proactive strategies to prevent it, and consistently upholding your insurance commitments, you pave the way for a future defined by security and assurance. Remember, term insurance is a promise that transcends time – you pledge to safeguard your family’s well-being even in your absence.

Related Articles: 

ARN - ED/11/23/6339

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.

Difference Between Term Insurance and Life Insurance

Difference Between Term Insurance and Life Insurance

Which is the best in terms of premiums, maturity benefits & death benefits? Read to compare benefits of term insurance & life insurance before buying a plan!

How to Choose the Right Term Policy Period?

Eligibility Criteria for Buying Term Insurance in India

Term Insurance Age Limit

Term life insurance age limit is the age range for buying a term plan. In India, you can start at 18 years, and the maximum age is usually up to 65 years.

Term Insurance Age Limit
Does a Non-Working Spouse Need Term Insurance? Previous
Am I Permitted to Make a Change in My Term Insurance Smoking Status? 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