Bajaj Allianz Life Smart Protect Goal – A non-linked, non-participating, pure term life insurance plan comes with a number of customizable features for you and your family
All desirable things require patience and constant effort to get results. You need to invest in good, healthy lifestyle habits for good health, just like you need to nurture a tree to bear good fruit a few years later. The same could also apply to our financial instruments. Whether it is an investment or insurance, regular and timely interventions are essential to obtain the maximum benefit from financial instruments.
The role and importance of term insurance policies has multiplied in these times when Covid-19 is going crazy in the country.
To keep the term insurance benefits active, a policy must be renewed when the expiration date arrives. Renewing a term insurance policy is important to keeping the policy in an active state so that the purpose for which it was purchased is adequately served.
Financial impact of Covid-19
The covid-19 pandemic has put pressure on the financial lives of many people. While lockdown restrictions are hurting the earnings of the self-employed, many salaried people are also feeling the pressure from pay cuts and job losses. In such circumstances, many people are facing a cash shortage and are contemplating deferring some discretionary spending to a later date.
But, if you are considering doing the same with your term insurance policy and you don’t pay the premium, think again! The premium for a term insurance plan should be treated as an essential non-discretionary expense. Under no circumstances should you think about not paying the premium on time or letting the policy lapse, because doing so could have an impact on your financial goal, which is to insure your loved ones.
Importance of premium payment
The premium in a term insurance plan must be paid up to the chosen period. It can be paid on a monthly, quarterly, semi-annual or annual basis under the terms and conditions specified within the respective term plan. However, there is a provision on the grace period if someone misses the due date. If you don’t pay the premium even after the end of the grace period, the policy expires. As a last resort, you can convert your annual payment into a monthly premium if you have funding problems. However, such a conversion can only be done when the policy is in an active state and not in an expired state.
Consequences of not paying the premium on time
There are some crucial consequences to your financial health if your term insurance policy expires. Here are some of them.
Your life goals are left unprotected – You would have paid the premium religiously for so long, but a year of non-payment will deprive you of coverage, putting your goals in jeopardy and the family in a financially vulnerable position. To ensure that the purpose for which you had purchased a term insurance policy is not compromised, be sure to keep the policy active by paying the premium on time.
No refund of premium –In case you forget to pay on time and the policy expires, the premium paid will not be refunded and no benefits will be paid.
Make sure to renew on time
To ensure that you continue to pay your premium on time, you can set up due date reminders and alerts. Also, make sure your phone number and email are up to date with the insurer. Also, opting for standing instructions with your bank to debit the premium amount on the due date keeps it simple and without risk of missing the due date.
Stay properly insured
If you already have a term planAs highlighted above, it is essential to keep the policy active. However, that is only the first step. You also need to make sure you are adequately insured. Otherwise, you should opt for higher coverage that is more in line with your lifestyle and your family’s financial goals.
If you don’t already have term insurance, choosing the right policy should be the first step in your financial planning.
Bajaj Allianz Life Smart Protect Goal – A non-participating, unlinked, pure term life insurance plan is one of the preferred options when it comes to protecting your life goals and those of your family. The plan is a comprehensive term plan with a competitive premium and works as a shield against financial stress caused by adverse life events.
Choosing the right insurer is equally important and Bajaj Allianz Life Insurance with a claims settlement rate of 98.48 percent [1] and have covered more than 2.36 million rupees [2] Lives is the right insurer to trust.
The purpose of purchasing a term insurance plan is to make sure your family does not run out of funds in your absence. Bajaj Allianz Life Smart Protect Goal – A non-linked, non-participating, pure term life insurance plan comes with a number of customizable features that make it simple and easy for you to keep life’s worries away and ensure financial security. of your loved ones. .
References
[1] Individual Claim Settlement Ratio for Fiscal Year 2020-2021
[2] Individual and group
BJAZ-WEB-EC-00918/21
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