Can We reduce Term Insurance Sum Assured after 1 year of buying the policy

POSTED BY Atin Sehgal ON January 4, 2013 5:04 pm COMMENTS (3)

Hi!

I was wondering if Sum assured for a Term Insurance can be reduced after 1 year.

My father had bought a Term plan from ICICI pru icare for 1.5 cr Sum Assured.

Is it possible to reduce the SA in this policy?

Thanks in advance in anticipation of an early response.

3 replies on this article “Can We reduce Term Insurance Sum Assured after 1 year of buying the policy”

  1. Atin Sehgal says:

    Thanks FFC and Ashal.

    No actually he had ought it for me but I do have separate covers and I don’t want him to pay unnecessary more for what is not desired.

    Regards

  2. Dear Atin, once the policy is issued, normally the increase or decrease in cover is not allowed. Still you may give a try to your insurer & ask for alternative.

    In my personal view, dumping the old one & getting a new one is a better solution.

    By the way, on a personal note, I want to know, does your father really need such big cover?

    thanks

    Ashal

  3. Most likely No. You could probably ask if the insurer if they could issue a fresh policy for reduced cover, they may agree but may try and push some other policy to make up their loss of premium! In any case if they do agree and ask for fresh medical test it might lead to loading of premium!

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