I had taken a term insurance policy for Rs 50 lakh two years ago when I was a bachelor. I will be getting married in two months and wish to increase the cover on my life. Can I add Rs 1 crore to the existing policy?
The additional cover does not happen given the risk on your life goes up due to the increased age
I had taken a term insurance policy for Rs 50 lakh two years ago when I was a bachelor. I will be getting married in two months and wish to increase the cover on my life. Can I add Rs 1 crore to the existing policy?
Rudrapratap Sharma, Noida
Congratulations on getting married. It is a good move to increase the life insurance cover at the time of increase in financial responsibilities and such landmarks. However, under a term life insurance policy, you cannot increase the scope of cover midway through the policy. As you are looking for an enhanced sum assured – you will have to either buy a new policy altogether after discarding your existing policy or take a new policy for the additional sum that you plan to insure for. The reason for additional cover does not happen because in two years, the risk on your life goes up due to age and the premium rates would vary. To address this issue, the insurer would want you to take a new policy for the increased sum that you are planning to take. As you have a policy, the same insurer may be less stringent in offering you an additional new policy compared to a new insurer. However, you could scout for policies from other insurers and explore the premium rates before making up your mind.