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Renewable Term Insurance
Every sound financial plan includes a term insurance policy. These plans provide your family with financial stability and security when they need it the most. ...Read More
1 Crore Term Insurance@ Rs.19/day***
To delay is to regret
You may not always be around to take care of your family. And that’s when a term plan ensures your family is well protected.
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Return of Premium (ROP) Option^
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17% Online Discount**
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Same Day Claim Processing#
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100% Claims guaranteed15
:1800-266-9777
What Is Renewable Term Insurance and What Are Its Benefits?
Table of Content
What is Renewable Term Life Insurance?
A renewable term insurance policy allows you to renew your plan regularly without a requalification process. Most term policies come with an annual renewable option. You can pay the renewal premium each year and continue to enjoy the coverage. When you renew the plan, you do not have to undergo any medical tests or requalify for insurance. These policies guarantee renewability.
How does it Work?
We can see how a renewable policy works with an example. Assume Mr Kumar purchases a 30-year term insurance policy when he’s 25 with an annual renewable option. He pays annual premiums to renew the coverage each year. As long as he pays the premiums on time, he will continue to enjoy the promised coverage for the next 30 years.
What Are the Benefits of Renewable Term Policies?
When you opt for a renewable term life insurance plan, you benefit from:
Easy Renewals
As the name suggests, renewable plans facilitate quick and easy life cover renewals. You do not have to undergo periodic medical tests or requalify for your life coverage. Instead, you simply need to pay your premiums on time to continue to enjoy the life coverage you selected when you purchased the plan.
Guaranteed Life Cover
Renewal term policies do not require you to requalify for insurance, effectively guaranteeing your life cover for the selected period. The only condition for the cover remains premium payment. If you fail to make your payment on time and the policy lapses, all the benefits end, including renewability and life coverage.
Financial Stability for Your Family
Crucially, renewable term plans provide your family with the sum assured payout in case something happens to you. The financial benefit they receive from a term policy enables them to repay any pending debts and keep their finances secure even after a tragedy.
Is a Renewable Term Life Insurance Policy Right for Me?
You should choose a renewable term plan if:
Traditional Whole Life Policies Are Too Costly
If a traditional life insurance plan is out of your budget, a renewable term plan makes more sense. The premiums for such plans are more affordable initially, allowing you to receive the coverage required.
You Require Short-Term Coverage
You may opt for a short-term policy to offset the cost of debt. Say you’ve recently purchased a vehicle with the help of a car loan. You can purchase a renewable term insurance policy for the duration of your loan. Your family can use the payout from the policy to repay the pending debt if anything happens to you while the policy is active.
You Need a Stop-Gap While Working on Yourself
Life insurance companies take your lifestyle and habits into account while deciding your sum assured and premium amount. If you’re working on building better habits, you can get a renewable term plan to provide the required coverage in the meanwhile. You can opt for a short-term renewable plan until you improve enough to purchase a traditional policy.
When browsing for life insurance options, you must not confuse renewable term plans with convertible policies. The former allows you to automatically extend your coverage for a given period. Convertible plans, on the other hand, allow you to turn your term policy into a whole life plan. You must select the policy option that best works for you and your finances.
Similar Articles:
- 10 FAQs on Term Insurance
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- 4 Simple Methods to Calculate : How Much Term Insurance You Need
- Factors to consider while buying a term insurance
- 5 Reasons Self Employed People Should Buy Term Insurance
- What Happens If You Outlive Your Term Life Insurance Policy?
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.
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Here's all you should know about life insurance.
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HDFC Life
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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.
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*Online Premium for Life Option, Male Life Assured, Non-Smoker, 20 years of age, Policy term of 25 years, Regular pay, Annual frequency, exclusive of taxes and levies as applicable. (Monthly Premium of Rs1047/30=34.9)
***Online Premium for Life Option for HDFC Life Click 2 Protect Supreme(UIN:101N183V01), Male Life Assured, Non-Smoker, salaried, 20 years of age, Policy term of 25 years, Regular pay, Monthly frequency, inclusive of 15% online discount (applicable only for 1st year premium) & exclusive of taxes and levies as applicable. (Monthly Premium of 573/30=19).
**7% online discount available on 1st year premium only
^ Available under Life & Life Plus plan options
#Provided we have received all the relevant and required documents and no further investigation is required. Claim settlement process would be completed within stipulated timelines once the claim request is approved
@As per integrated annual report FY23-24, available on www.hdfclife.com. As of May 2024
15. HDFC Life Click 2 Protect Ultimate(UIN: 101N179V01) A Non-Linked, Non-Participating, Individual, Pure Risk Premium/Savings Life Insurance Plan. The policy must be in force on the date of death, with all premiums fully paid, except for the exclusion clauses mentioned in Part F of the policy document.
ARN - ED/09/22/29365
