Life is full of ups and downs. It would be prudent on our part to fully protect our near and dear ones. Hence the term insurance has come into prominence where the interests of your loved ones are protected. It is a protection if anything untoward happens to you and the family is provided with a financial security. You would need to compare insurance plans before you go ahead as then only the best policy could be purchased.
As a buyer when you are buying an insurance policy you would need to keep on paying premiums regularly. The logic is simple that if you falter with regards to the payment, then the policy is going to lapse. Most of the policies have an option of renewal online. This is a must have of a plan as the onus is on the policy holder whether they are keen to renew the plan. As the buying of a policy is important, so works out to be the renewal aspect attached to it. You should not suffer if you fail to renew a policy
When renewing a policy is considered to be important?
Imagine a situation where you are a policy holder, you suffer a heart attack just before your policy expires. If your policy is not renewed, then the insurance policy holder is bound to suffer various difficulties. It does provide you with an opportunity to extend a policy which is very much part of the original deed of a policy.
If a holder decides to opt for a renewal then there is no need for any form of medical test. Your health record as no share in this regard and an insurance company is an obligation to honour the commitments of the policy. The only thing to watch out is that you need to be in the desired age bracket. If you fail to renew the policy you face the following difficulties
- The entire purpose of insurance stands defeated- the major drawback of an insurance policy is the purpose of it is going to be defeated. To safeguard the interest of your near and dear ones, it is as important as to pay the premium and give considerations on renewal of it.
- A larger amount- when you are buying an insurance policy, the premium amount may work out to be on the higher side. For this the insurance company takes into consideration, age coupled with family history and your health record. If the policy is terminated due to your inability to pay the premium, then you do loose out the benefits associated with it. For this reason insurance compare company is a must before you purchase any policy. Do weigh the pros and cons of each policy.
To conclude, an insurance policy lapses if you do not possess an ability to pay the premium on time. Life insurance has become a fundamental requirement of each person and it is something that cannot be avoided.