Life is steadily developing, and so are your financial wants. With age, your responsibilities also increase, and you might want to offer additional protection to your family in your absence. If you have invested in a term insurance plan early in life and over the years have realized that your loved ones need more financial security, you can always increase the sum assured amount.
Read on to know how you can increase the cover amount of term insurance plans.
How to increase your cover amount for online term insurance?
There are two ways to increase your cover amount:
Use the increasing cover option in your existing policy: If your current policy offers the rising sum assured option, you can go forward and raise the cover amount and enjoy more reliable protection. Many term insurance plans provide this feature to increase the sum assured at major life stages, such as when you get married, have a child, or adopt a child. This allows you to ensure that your loved ones are well-protected all the time.
When you opt for this option, the insurance company will likely increase your premium amount in proportion to the sum assured amount. However, the rest of the features and services remain the same, and there is no change in the terms and conditions of the plan. In the unfortunate event of death, your loved ones receive the updated sum assured amount, as long as you have paid all premiums and the policy is active.
This is a convenient option as you can modify your existing plan without any hassles.
Purchase a new plan with a higher sum assured:
If your current insurance provider does not offer the option to increase the cover amount of your online term insurance plan, you can consider purchasing a new term plan. In this case, you will have to surrender your old policy and then buy a new plan from a new insurer. The new insurance company will offer you a plan based on your current age, medical history, policy term, and sum assured. The premiums for a new plan may be more as you would be older than when you bought your old policy. So, it is imperative to compare different plans, features, services, premiums, etc., and then pick a plan that is the most cost-effective.
While this option may seem a bit tedious, it can be ideal if you are not happy with your existing term insurance plan and insurer and want to move to a better company. Also, keep in mind that it is better to go through slight inconvenience now rather than leave your loved ones with an inadequate cover amount in your absence.
Which of the two options is better?
The choice would entirely depend on your needs and your current policy. If you are happy with your existing plan and your insurer agrees to increase your cover, you can stick with the same company. However, if your current insurer lacks in providing you with the required features and cover, you should consider moving to another insurance provider. Various insurance companies offer online term insurance plans these days, making it easy and hassle-free to purchase insurance from the comfort of your home.
To sum it up
Before you increase your cover amount, make sure to evaluate your needs thoroughly and pick an amount that will protect your family members and beat inflation. Moreover, it would be best to keep in mind that the policy’s premiums increase with an increase in the sum assured. So, pick a cover amount that fits your budget.
If you are looking for high sum assured options at affordable rates, you can explore many options that can be suitable for all income and age groups.