Can the sum insurance of a term plan be increased during policy tenure?
.png)
When you purchase a term life insurance policy, you intend to leave a significant amount of cash for your household in the event that you die before fulfilling all of your monetary commitments. To determine the appropriate amount assured, determine how much you’d require completing all of your obligations which include your kid’s education, family weddings, settling all of your debts, and assisting your family’s current standard of living in the lengthy period.
In contrast to these considerations, there is the issue of inflation. The initial sum promised that you diligently calculated may not be sufficient for your family’s financial requirements. However, there is no need to worry. There are options to increase your term life insurance’s sum assured on maturity during the policy tenure.
.png)
What is Term Life Insurance?
A term insurance plan is the most basic and straightforward type of life insurance. The policyholder pays a premium amount for a set period – often around 10 to 30 years and if he/she dies within that time frame, their family receives a lump sum payout.
Term life insurance policies offer no payment when the term ends, and no payout other than the lump sum death payout. To make things easy, most term insurance plans are “level premium” which means your monthly premium value remains the same throughout the plan’s duration.
How to increase the sum assured in life insurance?
Purchasing a new plan is one option to enhance your term life insurance insured amount. You would have to complete the entire documentation procedure all over again, as well as provide fresh medical examinations. Considering the fact that you will be older and maybe have a fresh health problem, there’s a potential that your policy will be too pricey. In the worst-case scenario, the upgraded policy you are looking for may be refused to owe to age or medical concerns.
On top of the problems you would encounter in handling two distinct plans, the members of your family will also face challenges in completing the claims procedure twice. They will be required to file two pieces of documents and then, follow up with each insurance company individually – all while suffering for your unfortunate loss.
If you choose to cancel the prior plan, you will remain uninsured in the gap between the two plans. That is usually a terrible idea.
How to increase the sum assured in term insurance during policy tenure?
There are 2 primary methods for boosting term insurance sum during the policy’s duration.
Method 1: Upgrading your existing Term Life Insurance Policy
If you are looking to upgrade your insurance policy amount, the first option to consider is to upgrade your existing term plan. So, at the time of renewal, you can file for an enhancement of your existing coverage. Your insurance provider might need you to submit more paperwork, file new applications, and go through additional medical examinations, among other things.
Once your coverage is approved, your insurance company will notify you about the increase in your premiums based on the medical examination findings. This is the simplest process, but some plans might not even provide an option to enhance coverage. In that case, you would be required to do any of the following:
- Opt for an additional term insurance plan from the same insurer
- Opt for a different term insurance plan from a different insurer
However, in both cases, you need to remember to disclose the details of your erstwhile policy so that the insurer is able to underwrite your policy properly and there are no hassles at the time of a claim if the need arises.
Method 2: Buying an Increasing Term Life Insurance Policy
Rather than dealing with the complications of many policies, you may get term life insurance with a growing benefit option. As the name implies, your coverage amount will steadily increase over time – until the total insured amount reaches its maximum limit provided by the insurance provider.
You will not be required to undertake any new healthcare exams, nor will your application for a policy upgrade be denied. The plan will be incrementally upgraded without your manual assistance.
There are several expanding protection alternatives accessible in the market, depending on the company. You may select the appropriate insurance for you depending on the percentage growth, the maximum coverage you want, or an ending age.

Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
Other Life Insurance Products
Latest Post

Showing care and love towards your loved ones can come in different forms, and purchasing a family health insurance plan is one of them. While there are several benefits of purchasing a family health insurance plan, finding one that suits your family’s needs can be confusing. Let’s walk through the top family health insurance plans to give you an insight.

Health insurance has become a household name in recent years, especially after the worldwide pandemic outbreak. People have understood the importance of having health insurance the hard way. This has significantly enhanced its popularity.

When it comes to financial planning, people often want to choose the best of both worlds: returns and security. If you have been looking for these two elements under one plan, then you would have come across ULIPs and Guaranteed Return Plans. While ULIP plans offer high returns, guaranteed return plans ensure stability and security. Which one is the most suitable for you? That's a topic worth discussing.
.png)
What about investing in a policy that promises the dual benefit of life cover and maturity benefit? That's exactly what an endowment policy does. All you need to do is save regularly to reap a lump-sum maturity benefit. Simultaneously, the policy also provides life cover to the assured. However, financial experts suggest that not every policy can be suitable for every financial goal.

When 29-year-old Shravan Kapoor planned to buy an endowment plan, he was quite sure he would be able to do that in a few minutes. However, when he opened the insurer’s website, he felt lost in the maze of endowment policies. Guaranteed returns, bonuses, maturity benefits, premium paying tenure, etc, all seemed a little too much to handle.