Term Insurance Payment Plan Change

[Abhinav Grover]

Hi, I have a term insurance with coverage of 1Cr. From Bajaj Allianz. I have chosen 10 year payment plan but I now realize that regular pay is better because if I invest that money I can get higher returns as time period will be longer.

I contacted customer care and they said my insurance can only be lapsed after 2 years with zero refund. Kindly suggest remidial action.

 

[Akshita.sri]

It sounds like you're facing a bit of a dilemma with your Bajaj Allianz term insurance. Based on what you’ve shared, you have a 10-year payment plan, and now you realize that switching to a regular pay plan might better suit your long-term financial goals.

Here are a few things to consider:

1. Understanding the Lapse Condition: If your policy lapses after two years with zero refund, that means you’ve already committed two years of premium payments, and the money you've paid won’t be returned. However, you still have a few options.
2. Explore Policy Modification: Instead of letting the policy lapse, reach out to the insurer and inquire about the possibility of modifying your plan. Some insurers allow you to switch from a limited pay plan to a regular pay plan within the first few years, though it may require additional paperwork or may come with some adjustments to your premiums.
3. Review Future Premium Payments: If changing the plan isn’t an option, consider whether you can manage to continue paying the premium for the full duration of your current plan. While regular pay might offer more flexibility and investment growth opportunities, maintaining your current coverage (even with the 10-year plan) might still be valuable as a life insurance safety net.
4. Consider Additional Investments: If you prefer to have a longer investment horizon for better returns, you might also consider investing separately in other financial products (like mutual funds, SIPs, or ETFs) alongside your term insurance. This way, you can still benefit from the higher returns without having to alter your existing insurance policy.
5. Get Professional Advice: Since this involves both insurance and financial planning, it might be worth speaking with a financial advisor who can help you weigh the pros and cons of each option and guide you on how to balance your insurance and investment needs.

In summary, your best approach is to first explore the possibility of modifying your existing policy. If that’s not an option, balancing your insurance with other investments can help you achieve better returns while maintaining your financial protection.

If you'd like further help, feel free to check out options available through PolicyBazaar term insurance, which can help you compare different term plans and provide guidance on how to manage your financial security.

 

[JATINDERCHHABRA1976@GMAIL]

I have a SBI Term insurance started in year 2020 for 5 years of Tenure. Last premium was paid few days back in December 2024. Can I extend my insurance tenure ? Experst please guide. Thanks

 

[Akshita.sri]

I have a SBI Term insurance started in year 2020 for 5 years of Tenure. Last premium was paid few days back in December 2024. Can I extend my insurance tenure ? Experst please guide. Thanks

Yes, you can extend your SBI Term Insurance tenure. Typically, insurers allow policyholders to renew or extend their term insurance for an additional period. You should contact SBI Life Insurance directly to inquire about the options for extending your coverage beyond the initial 5 years. They may offer policy renewals or modifications based on your current needs and health status. Be sure to review any changes in premiums or terms before proceeding.

 

[JATINDERCHHABRA1976@GMAIL]

I tried to contact SBI, they simply denied to extend tenure. I am ready for changes in premium too but could not get success. any solution, kindly guide

 

[Akshita.sri]

Maybe it's time to give up on that specific policy, then.

But fret not!!

You can still buy a new term insurance plan from SBI Life or any other provider that fits your budget and suits your trust for your required policy term and sum assured.

You can easily visit policybazaar term insurance page to check out the available plans and discounts on premiums they offer!!

 

[JATINDERCHHABRA1976@GMAIL]

So for that I need to go for all medical tests again. I don't think they consider my test given during issuance of policy. Kindly see - I am in good health but getting on treadmill and all those blood test is a truma.