Meaning of Term Insurance Portability
Published On Apr 11, 2023, Updated On May 02, 2023
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In order to stay protected against uncertainties, a number of people now prefer investing in different types of insurance products. From health insurance, life insurance, to term insurance and many more, there are a bunch of insurance products available to cater to the insurance needs of individuals. A term insurance plan is a popular insurance product that is sold by a number of insurers to offer financial protection to its customers. There are so many term insurance plans available that it often becomes confusing for customers to pick the right term insurance plan. So, in this blog, let us understand all about the meaning of the term insurance portability.
What is Term Insurance?
A term insurance plan is meant to offer financial protection to the dependants of the policyholder, in case the latter meets an unfortunate death. This means that if the policyholder passes away during the term insurance plan tenure, then financial protection will be offered to the nominees. Such plans offer pure life insurance protection and are available at very affordable premiums.
What is Portability in Term Insurance?
The concept of Portability in Term Insurance means the right that any policyholder holds for switching their term insurance plan. Under this process, individuals can transfer their term insurance plan from one insurer to another without losing any accumulated benefits such as premiums paid and others.
Reasons for Portability in Term Insurance Plans
There are several reasons why policyholders consider switching their term insurance plan from one insurer to another. Listed below are some of the common reasons for this:
- There are instances when you might feel that the coverage offered under your term insurance plan is not adequate. In such a case, you might feel dissatisfied and might want to make a switch from your current insurer. This is where portability in term insurance plans comes into role.
- Another reason why individuals prefer to port their term insurance plan is to get term insurance at affordable premiums. For this, it is best to compare the term insurance plans offered by different insurers and check their premiums.
- In case of a dispute with the existing insurer, the policyholder may want to port their existing term insurance policy.
It is also important to understand that instead of buying a new term insurance policy altogether it is better to port your plan. This will help you from buying a new term insurance plan from scratch. Moreover, the process of term insurance portability is also easier and hassle-free.
Benefits of Buying Portable Term Insurance Plans
Listed below are some of the benefits of buying Portable Term Insurance Plans:
- With a Portable Term Insurance plan, you can ensure financial protection for your loved ones in your absence.
- A portable term insurance plan lets you switch from one insurer to another in a convenient manner.
Despite the option available in which you can port from one term insurance plan to another, it is a wise idea to buy the right term insurance plan to avoid such a situation. You can also contact us at InsuranceDekho to get assistance in choosing the right term insurance plan for yourself.
Thus, in a nutshell, it can be said that term insurance portability is a feature that lets you easily switch from one insurer to another. This feature is especially useful when you are not satisfied with the benefits offered under your term insurance plan.