Is A Term Insurance Policy Portable?
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. 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 insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Is a Term Insurance Policy Portable?

Is a Term Insurance Policy Portable?
  • 27th Aug 2021 |
  • 950

Buying a term plan has become an integral part of the investment portfolio for many working professionals. Term insurance offers financial protection to your family in the event of your unfortunate demise; it allows them to be financially independent even in your absence.

Over the years, term insurance has evolved significantly, and today, the modern policies offer several benefits, including the return of premium, option to cover your spouse under the same policy, etc. Another significant feature of a term insurance policy is that it has an affordable premium.

Even though term insurance policy is immensely popular among the masses, the IRDA (Insurance Regulatory and Development Authority of India) is considering a proposal to allow the transfer of term insurance policy from one insurer to another. In other words, IRDA plans to allow term insurance portability. If the plan is passed, experts believe term insurance’s popularity will increase manifold.

What is term insurance portability?

Term insurance portability is a facility wherein you can transfer the policy from one insurance provider to another without losing its benefits. Is term insurance portable?

As per the existing IRDA rules, only health insurance policies are transferable from one insurance company to the other. Term insurance portability is not allowed. Therefore, if you want to cancel your current term plan before maturity, you may have to pay cancellation charges, which could be up to 70% of the premium paid.

Term insurance portability is a condition of protecting the policyholder’s interest and promoting a fair and competitive market. If the proposal is implemented, experts believe that the insurance companies will strive hard to retain their existing customers by providing high-quality services. With term insurance portability, you may not have to be captive of the contract, and if you are not happy with the services, you can switch your policy to a better insurance provider.

Benefits of buying term insurance policy

One of the primary reasons IRDA plans to implement term insurance portability is to promote transparency in the services offered by the insurance companies. While term insurance portability is yet to become a reality, let us look at the benefits of buying a term policy.

  • Ensures financial security of your family members
  • The insurance benefit or the sum assured received by your family member in the event of your unfortunate demise during the policy period can help them take care of their regular expenses. It can also help the family meet their long-term goals like child education and marriage.

  • Protects your assets
  • If you have any liabilities like a home loan or credit card bill, the repayment can be a huge financial burden for the family without you. They may have to sell their assets or use the savings to pay off the dues. But, if you have purchased a term insurance policy, the family can use the payout to repay the debts and keep your assets and hard-earned savings intact.

  • Protection against medical emergencies

The COVID-19 infection spread has made everyone aware of the importance of robust insurance coverage to meet the medical expenses during an emergency. So, as a responsible citizen and a caretaker of the family, you must be financially prepared to deal with any medical emergency in the post-pandemic world.

The term insurance plans not only protect your family after your demise but also provide coverage against terminal illnesses and other life-threatening medical conditions. This feature pays the sum assured to the family member immediately after being diagnosed with any severe disease such as cancer or heart ailment.

Final Word

Although term insurance is not portable yet, it is advisable to have a term policy in your portfolio. It is a great way to secure your family’s financial future even in your absence.

Kotak e-Term Plan

Download Brochure

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

How to Surrender Term Life Insurance When You Have No Liabilities?

Why is it important to buy term insurance plan?

Ensure Protection Against Death, Disease & Disability With Life Insurance

Is There Any Tax Benefit on Term Insurance?

What is Insurance Premium - A Detailed Guide

What Should Be The Duration Of Your Term Plan in India?

Term Insurance with Critical Illness

8 Things To Do After Buying Term Insurance

Is Term Life Insurance Plan an Investment or Expense?

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

Why Term Plan Should Be The First Step To Securing Your Future?

How to Ensure That Your Term Insurance Claims Are Never Rejected?

5 Reasons to Buy Term Insurance When You are in Your 30s

What is a short term insurance policy?

Term Plans are Definitely Cheaper than You Think!

Cost of Term Insurance Likely to Increase Soon

What is Term Insurance - A Complete Guide

Understanding Term Insurance Riders

How To Calculate The Amount Of Term Life Insurance You Need?

Term Insurance Age Limit – Term Plan for All Age Groups

Make Your Online Term Plan Your Family's Monthly Pay Cheque

Individual Life Insurance vs. Group Term Life Insurance

Tips to Choose the Right Term Period for Term Insurance Plan

Why does every working woman need life insurance?

Does Your Term Insurance Plan Cover Death Due to COVID-19?

What Are Insurance Riders and How to Choose Them in a Term Plan?

Choosing Riders for Insurance Plans

How Does Term Life Insurance Work? Learn the Benefits

Should You Buy a Term Plan After 40?

Gift Your Father A Term Insurance Plan This Father's Day

Do I Need to Give a Medical Test for Term Insurance in India?

9 Ways to Help Family Members in Financial Trouble

While Buying Term Insurance Compare Features, Not Just Premiums

Protection for your family

Should Youngsters, Working Couples Buy Term Insurance Plans?

Is It Good To Buy A Term Insurance Plan In 2022?

Eligibility Criteria for Buying Term Insurance in India

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Make Your Online Term Plan Your Familys Monthly Payout

Endowment Plans vs Term Plans: Understanding the difference

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

What Should You opt for - Limited or Premium Pay?

Do Beneficiaries Pay Taxes on Term Insurance?

Which Death Type Does Your Term Plan Not Cover?

Buying A Term Insurance Plan? Take These Factors into Account

What Is the Correct Age to Buy Term Insurance?

Online vs Offline Term Insurance: Which Is The Better Option To Buy

How to Compare Term Insurance Online

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

Different Types of Protection Plans

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

5 Term Insurance Benefits for Single Women

6 Types of Death not covered in Term Insurance Plan

How To Change The Nominee in Term Insurance?

Should You Have Multiple Term Life Insurance Policies?

Can You Increase Your Term Insurance Cover?

Why Buy Term Insurance Even at Rising Rates?

5 Benefits of Early Retirement Planning

What All Documents Required For Term Insurance In India?

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

All About Term Insurance Inbuilt Coverage

Insuring Against Accidents with an Accidental Death Insurance Rider

Know How to Invest at Every Age for Larger Returns

Best Investment Plans for Children - Secure Your Child's Future

How to Identify Term Insurance According to Your Needs?

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

4 Things To Expect From Your Term Insurance Plan in India

Can I Buy Term Insurance for a COVID-19 Patient?

9 Most Frequently Asked Questions on Term Insurance

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Why Spending Time with Friends is Essential for Your Mental Health?

Term Life Insurance Plan for Smokers vs Non-Smokers

Term Insurance: What Happens When You Don’t Pay Your Premiums?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Why Premium Amount for Term Insurance is So Low?

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

How To Choose the Right Term Insurance Plan?

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

8 Types of Death not covered in Term Insurance Plan

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Is Life Insurance Investment Worthy Enough

What Is a Renewable Term Insurance Policy?

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Term Insurance: Smokers vs Non-Smokers

Planning For Son or Daughter's Wedding

Why Buy Term Insurance Plan With a High Cover?

Why Married People Should Buy Term Insurance Under MWP Act?

What Types of Deaths Are Covered in a Term Insurance Plan?

What Are the Best Term Insurance Plans for Planning Retirement?

Why Term Insurance Is Important in times of COVID-19?

Term Insurance – Why You Must Include In Your Financial Planning?

Calculating Term Insurance Premium

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Why Should New Parents Buy Term Life Insurance?

How Much Term Life Insurance Cover Do I Need in India?

10 Ways to Mentally Refresh After a Stressful Day

How Not To Get Your Term Insurance Claim Rejected

4 Methods to Calculate How Much Term Insurance You Need

Importance of Term Insurance at Every Stage of Your Life

8 Factors to consider before choosing a Critical Illness Insurance

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

8 Benefits of Term Insurance You Should Know

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Increasing Term Insurance and Riders

How Much Term Insurance Do I Need

How Does A Term Life Insurance Work in India?

How To Choose the Right Sum Assured Under a Term Plan?

Busting Myths and Facts About Term Insurance Policies

Advantages & Disadvantages of Term Insurance in India

Side Effects of Covid-19 Booster Doses

Can Senior Citizens Avail Term Insurance?

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

5 Things To Consider While Buying Term Insurance Plan

Term Insurance With Riders In India

Why 1 Cr Term Plan Is Necessary For Family?

What is Critical Illness Policy

4 Reasons Why You Need Critical Illness Cover

Is ₹1 Crore Term Insurance Good Enough Cover?

Insuring yourself against Ill Health with a Critical Illness Rider

Why Should You Buy Term Insurance in 2022?

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

10-Year Term Life Insurance Policy - Explained in Detail

Term Plan with Spouse Cover

Term Insurance Calculator - Everythng You Need To Know

Why should single women purchase term life insurance?

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

What are incremental term insurance plans?

Advantages of Buying Term Insurance in Your 50s

Can I Make Changes to My Term Insurance Policy Post Purchase?

Can Term Insurance Plans Be Purchased As A Gift?

Is term Insurance Needed for People With No Dependents?

Can I Get Term Insurance on Behalf of My Spouse?

Different Types of Premium in Term Insurance

Everything About Claim Settlement Ratio for Term Insurance

All you need to Know about Term Insurance Plans for Housewives

Can I Extend the Tenure of My Term Insurance Plan?

Tax Benefits of Term Insurance in India

Does Term Insurance Cover Accidental Death?

What Happens if you Hide Facts in your Term Insurance?

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Do You Need Term Insurance Cover After Retirement?

Why Should You Add a Rider to a Term Insurance Plan?

Insuring Protection Against Death With Death Insurance Rider

Top 3 Reasons Why You Should Buy A Term Plan Now

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

What are the Documents Required for Term Insurance Plan?

Insuring Against Disability With Disability Insurance Rider

Why Term Insurance Is Better Than ULIP?

Term Insurance Basics You Should Know

Insurance Policy for Housewife In India

How Much Cover Should I Take In A Term Plan?

Comparing Term Plans – What Should You Look Out For

Planning For Children's Future

6 Reasons That Make Term Insurance a Must Buy

Difference Between Term Insurance vs Life Insurance

Is Group Term Life Insurance Provided By Employer Sufficient?

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

Why Should You Not Take A Term Plan Without Medical Test in India?

Term Insurance Plans and Policies for Smokers

Reasons You Need Term Insurance Plan as a Self-Employed Person

Steps on How to Buy Term Insurance Online