Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak e-Term

Protect your family's financial future. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and life cover. Know more

Kotak e-Invest

Insurance and Investment in one plan. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Why You Should Never Cancel Life Insurance Policy

Thinking to cancel life insurance policy. Then consider the uncertainties in life, what about the financial security of your dependents in your absence. Click here to know why you should not cancel your life insurance.

  • Nov 11, 2019
  • 7,123 Views

Are you considering canceling life insurance coverage to save the premium amount? Before you do that, consider the uncertainties in life. If you have any dependents, you need to take their financial security in your absence into consideration before canceling insurance coverage is crucial.

Five reasons why you must not cancel your insurance policy:

1. To take care of your family’s future financial needs

Your family members depend on you for all their financial needs when you are the sole breadwinner. In case of an unfortunate event, they may have to compromise on their lifestyle due to a liquidity crisis. When you cancel a life insurance policy, you deprive your family members of financial security in your absence.

2. Surrender charges may adversely affect your finances

You may cancel the current life cover to avail of a new policy in the future. However, you may have to pay a higher premium amount to procure similar coverage later. Moreover, if you are diagnosed with some illnesses, you may be denied coverage. Additionally, policies like an endowment, whole life plans, and money-back incur surrender charges and taxes, which give you a minuscule amount when you cancel the same.

3. To save income tax liability

When you ask yourself should I cancel my life insurance policy, take into consideration the tax benefits available on the premium. The insurance premium qualifies for tax deductions according to Section 80C of the Income Tax Act, 1961. Additionally, some policies like unit-linked insurance plans (ULIPs) offer tax-efficient returns on the investment when compared to other financial products.

4. Enjoy peace of mind

You may choose from various types of online life insurance policies that help you achieve different financial goals. Additionally, the policy may be used as collateral to avail of loans to meet short-term objectives. For higher coverage, you may choose riders like critical illness or accidental disability at an extra premium. Children’s plans and endowment policies provide financial stability for their future.

5. New coverage may be more expensive

Once you cancel the insurance policy, you lose the coverage. If you want to procure life cover later, you may have to pay a higher premium.

If you still think that the insurance premium may be a financial burden, insurers offer flexibility. Here is how you may prevent the surrender of your coverage:

Change the premium payment mode

If you have chosen an annual premium mode and find it difficult to pay, consider modifying the same. Speak to your insurance provider and opt for monthly or quarterly payment option. This reduces your burden and helps you meet financial constraints.

Eliminate the riders

Though procuring greater coverage through riders is helpful, consider the necessary ones. If you have riders that are not beneficial, eliminate these to reduce the premium cost. It is important to not include riders only because someone you know has these. Opt for riders that are suitable as per your requirements.

The answer to can you cancel your life insurance policy is ‘Yes’. But before you opt for it, bear in mind that life cover is crucial to meet uncertainties in life. Therefore, ensure you do not let it lapse or do not cancel it, as you may be risking the financial future of your loved ones. Therefore, stay insured and enjoy peace of mind.

Kotak e-Term

Download Brochure

Features

  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Choosing a Life Insurance Beneficiary

How to Make Death Claims on Life Insurance?

Why do most Indians choose the wrong way to buy life insurance?

Invest in Insurance to Secure Your Future

Life Insurance with Money Back vs Without Money Back

Important Life Insurance Terms You Must Know

Life Insurance Nominees: 5 Must-Know Facts for Beneficiaries

7 Superficial Reasons People Avoid Buying Insurance Online

5 Reasons Why a Women Should Buy a Life Insurance

What is Minimum Life Insurance Policy?

What is Insurance Premium? | Definition of Insurance Premium

Why do I Need Life Insurance?

Details Required To Be Filled In A Life Insurance Form

Difference Between Money Back and Endowment Policy

Advantages of Digitizing the Insurance Claims Process

Choosing Riders for Insurance Plans

How Does Life Insurance Work?

Life Insurance for Millennials

Health Insurance VS Life Insurance

Staying Insured While Investing

Do College Students Need to Buy a Life Insurance?

How to Use Different Types of Life Insurance for Retirement Planning?

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

How to Choose the Right Term Plan as per Your Age

Insurance and Endowment: Everything You Need to Know!

How Many Insurances Should I Have?

6 Ways You Can Ensure Fast & Smooth Claim Settlement

How often should I review my policy?

Does Life Insurance Policy Cover Covid Death?

Compare Different Life Insurance Products Offered By Kotak Life

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

When are Millennials required to take out a life insurance policy?

What is the process of reactivating lapsed life insurance policy?

Life Insurance vs. Death Insurance: Exploring the Key Distinction

Backdating in Life Insurance: Should You Avoid it?

Why Life Insurance is Always a Smart Decision?

6 Different Types of Insurance Policies

Voluntary Life Insurance vs. Basic Life Insurance

Whole Life Insurance Definition: How It Works, With Examples

Life Insurance and Retirement Planning

Insurance vs Investment - Know the Difference

भारत में गृहणियों के लिए टर्म इंश्योरेंस

Do Life Insurance Premiums Increase Every Year?

How to Customize Your Life Insurance Policy with Riders

Does Family History Affects your Term Life Insurance Rates?

Term Plan with Return of Premium (TROP)

Ensure Protection Against Death, Disease & Disability With Life Insurance

Most Common Life Insurance Riders to Enhance Your Existing Policy

NRI Premium Payment Options

Terminal Illness Benefit in Term Insurance

How to Choose a Life Insurance Policy

How Much Life Insurance Do You Need?

Choosing Between Short-Term & Long-Term Insurance Plans

Types of Riders in Insurance Policy

Term Life Insurance vs Accidental Death Insurance

Why Term Insurance for Women is Important?

What Is Insurance Rider and It’s Benefits?

Process of Filing A Claim For Life Insurance

Know the many types of life insurance policies in India

Do Your Financial Planning with Life Insurance!

What is KYC - Meaning, Types, and Importance

What is Human Life Value (HLV) & How to Calculate it?

Life Insurance and Millennials

What is Life Insurance?

Always keep your Nominee informed

Health Insurance VS Life Insurance

Why is Medical Test Important While Buying a Term Insurance?

Digital Life Certificate for Pensioners Seeking Pension

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Savings cum Protection Plans Secures Your Family from Unforeseen Events

FAQs on Life Insurance

Different Types of Protection Plans

5 Common Life Insurance FAQs and Answers

Important Terminologies of Life Insurance

What Is the Procedure to choose a nomination in life insurance policy?

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

Life Insurance Plans for Women

What Is Investment Insurance?

Biggest Life Insurance Myths

How to Buy Life Insurance Policy Online?

What is the Difference Between Insurance and Reinsurance?

Is It Time to Review Life Insurance Policy of Yours?

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

Life Insurance Vs. Mutual Funds Investment

Benefits of Term Insurance with Critical Illness Rider

Life Insurance vs Mutual Funds

Loan Against Life Insurance Policy

Difference Between Insurance and Assurance?

All about Life Insurance Calculators

Nominee in insurance - A Complete Guide on nomination in insurance

Is Life Insurance Worth It?

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

Sabse Pehle Life Insurance

What Is the Difference Between Group Term and Voluntary Term Life Insurance?

Benefits of Gifting Term Insurance to Your Spouse

What Should One Expect During the Medical Evaluation for Life Insurance?

What is Group Insurance?

All about Your Rights and Duties While Buying Life Insurance Policy

What Happens If You Stop Paying Premiums of Life Insurance?

Different Types Of Life Insurance In India

How Much Term Life Insurance Cover Do I Need?

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

6 Things You Didn't Know Life Insurance Could Do

What is Human Life value and a Human Life Value Calculator?

Should You Buy Life Insurance After Getting Married?

How Do Term Insurance Plans Differ for Smokers?

5 Things to Keep in Mind While Buying Life Insurance Policy

Kotak Life Claim Settlement Ratio

Tax benefit: Is your single premium life insurance policy eligible for tax benefits?

जीवन बीमा पर ऋण

Think About Life Insurance Sooner than Later

In India, should NRIs purchase life insurance?

Role of IRDAI in the Insurance Sector

बीमा क्षेत्र में IRDAI की भूमिका

All About Life Insurance and How It Works?

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

Term Insurance Vs Life insurance: Small Details, Big Differences

5 Easy Steps to Buying A Policy

Everything You Need to Know About Endowment Policy

Know the many types of life insurance policies in India

भारत में जीवन बीमा पॉलिसियों के प्रकार

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

Life Insurance for Overweight Applicants

How to Choose Life Insurance for All Ages?

Here's How to Choose The Tight Life Insurance

Is Life Insurance For Millennials Really Needed?

What are robo-advisors in insurance?

Can a Term Plan be the Substitute for a Retirement Plan?

Want to surrender your life insurance policy? Here's a guide

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

9 Most Important Things You Must Learn About Paying Life Insurance Premium

Adding a Child to Your Life Insurance Policy?

What happens to joint life insurance after divorce?

What is the Difference Between Limited and Regular Pay Insurance Plan?

Key Things to Review in Your Life Insurance Policy Document

जीवन बीमा क्या है?

Guidelines for Linking Aadhar and PAN to Insurance Policies

क्या जीवन बीमा एक निवेश है?

Can I Transfer My Term Life Insurance Policy to another Company?

भारत में सर्वश्रेष्ठ टर्म प्लान कैसे चुनें?

What are the Benefits of Endowment Policy?

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

Why Your Family Should Know About Your Life Insurance Policy?

Different Types of Insurance Policies in India

What is Insurance Coverage? Overview, Types, and Examples

All about IRDAI

Life Insurance Beneficiary

Customer Awareness on Information Security

Benefits of Term Insurance for Senior Citizens in India

How do life insurance payouts work?

Life Insurance for Overweight Applicants

Why Porting Health & Life Insurance after Marriage is Important?

Best Insurance Plans in India

Why Do Life Insurance Agents Avoid Selling Term Plans?

Role of Life Insurance in Your Financial Portfolio

Is It Advisable To Have Multiple Life Insurance Policies?

Top 5 Common Life Insurance Myths and Facts

Who Is A Nominee In A Life Insurance Plan?

How Much Life Insurance Should You Have?

Does Life Insurance Pay for Suicidal Death?

What is Underinsurance & The Dangers of Being Underinsured

Beware of Phishing & Fraud Insurance Calls