Switching your term plan from one company to another, know from our expert Mr. Deepak Yohannan, CEO and founder at MyInsuranceClub
It’s a free world and there is nothing stopping you from moving from one insurer to another for a new improved term insurance plan.
It is not as smooth as you would want it to be though. You don’t carry over any benefits when you move from one plan to another. In case, at a future point of time you find a better term insurance plan, you can surely shift to that plan. However, please bear in mind that it will be like buying a new policy. The concept of portability does not exist in life insurance. You will be treated as as new customer for the new plan. The premiums and underwriting conditions will apply basis your new age and your current health condition.
So here is what I would suggest. Take a base plan – a vanilla term insurance plan which offers only life cover which you really don’t need to change in future – compare term plans. You can then take a second plan which has riders of your choice. At a future point in time if you want to shift, change the one with additional covers or just take a new additional plan for a new amount of cover.
Whatever the scenario, please ensure that you fill up the application forms yourself and input all details correctly – that is the most important part.