Can we Port Term Insurance?

Can we Port Term Insurance? No, you can’t port term insurance like you can with health insurance. There’s no regulatory provision or continuity benefit in place. Term plans are long-term contracts with fixed premiums, and switching would require a new policy, fresh underwriting, and possibly higher premiums. So, if you find a better plan, your only real option is to buy a new one — porting isn’t possible.

What if I told you there’s a term insurance plan out there that’s objectively better than yours? Cheaper premiums. Better features. A more reliable insurer.

What would you want to do?

Simple —You’d want to find out what makes it “ objectively better,” right?

And if those big claims actually hold up?

Well, you'd either port the policy… Or just switch to the better one.

But here’s the catch:You can’t port a term insurance plan.

Unlike health insurance, there’s no portability in term insurance. No continuity benefits. No regulatory pathway. Nothing.

So if you really want that “better” plan, you have to start from scratch —New application. New underwriting. New premium.

And yes, that’s a big decision. Let’s get into it.

If you need help choosing the right policy, feel free to chat with us on WhatsApp or book a call at a convenient time—no spam — just honest insurance advice. 

What is portability in insurance?

Portability in insurance allows you to switch from Policy A from Insurer A to Policy B from Insurer B without losing key benefits like waiting periods, coverage continuity, and moratorium period. It’s most commonly available in health insurance, where you might want to shift to a better plan or provider.

Example:
If you’ve completed a 2-year waiting period for pre-existing diseases (out of a total of 3) under HDFC ERGO’s Optima Secure and then port to Care’s Care Supreme, you don’t have to restart that waiting period — it carries forward.

Why You Might  Want to Switch Term Insurance Providers

Term insurance is a long-term commitment, but what if you realize later that there’s a better deal out there? A newer plan with better features, lower premiums, or a more trusted insurer? It’s natural to consider switching.

1) Better Features & Riders

New-age term plans offer additional riders, such as critical illness, waiver of premium, or accidental death benefit, which enhance your base cover significantly.

2) Lower Premiums for Same or Higher Coverage

Some insurers offer aggressive pricing or flexible premium payment options (like limited pay), letting you save money or get more coverage at the same cost.

3) Poor Customer Service or Claim Experience

If your current insurer has a history of delays, poor communication, or low claim settlement support, it can impact your family's future experience.

4) Policy Consolidation or Financial Restructuring

Managing multiple term plans can be inefficient. Switching helps streamline protection under one plan, reducing confusion and improving claim clarity.

5) More Reliable Insurer with Better Claim Settlement Ratio

Switching to an insurer with a higher Claim Settlement Ratio (CSR) ensures higher trust in payouts when it matters most.

While switching term insurance might seem logical when better options exist, it's important to weigh the cost, effort, and underwriting involved, especially since porting isn’t allowed. Always compare smartly and act based on your life stage and needs.

You might want to switch term insurance providers for better features, lower premiums, or a more reliable insurer, but since porting isn’t allowed, weigh the costs and underwriting before making the move.

Can We Port Term Insurance Policies?

No, term insurance policies cannot be ported like health insurance. There is no regulatory framework by the IRDAI that allows term plan portability between insurers.

Here’s why:

1) Regulatory & Structural Reasons:

Unlike health insurance, term insurance has a fixed premium structure and no concept of waiting periods or continuity benefits. Once you lock in a premium at a younger age, it stays the same for the entire term.

2) Actuarial Considerations:

Term insurance is priced based on age, health, and mortality risk at the time of purchase. Allowing customers to port at an older age would distort the risk pool by increasing the probability of claims, making it unviable for insurers.

3) No Loyalty Benefits Like in Health Insurance:

Health insurance offers incentives for continuity — like No Claim Bonus or waiting period credits — which portability protects. But term insurance has no such accumulated benefits, so there’s nothing to "carry forward" between insurers. Moreover, the premiums for health insurance increase with age and inflation, which provides health insurers the incentive to enroll new policyholders who port. However, the premiums for term insurance are locked in throughout the policy term, which means that there is barely any incentive for term insurers to accept porting applications. 

In short, porting defeats the core design of term plans — fixed pricing for long-term risk, making it both practically and actuarially unfeasible.

TL;DR: Term insurance policies cannot be ported due to their fixed premiums, lack of continuity benefits, and actuarial risks, making portability structurally and financially unviable for insurers.

Why Porting is Neither a Good Idea Nor a Possible One (Ditto’s Take)

At Ditto, we often get asked, “Can I port my term insurance to a better plan?” And our honest answer is: you can’t — and even if you could, it probably wouldn’t be worth it.

Here’s why:

• No Regulatory Support: IRDAI doesn’t allow term insurance portability. You can’t transfer your existing benefits, premiums, or underwriting history to another insurer.
• No Continuity Advantage: Term plans don’t have waiting periods or bonuses like health insurance. So there’s nothing meaningful to "retain" if you switch — you’d just be starting from scratch.
• New Underwriting Risks: You’ll have to undergo fresh medical tests, and if your health has changed, your new premium could be significantly higher, or worse, you could be denied coverage altogether.
• You Lose the Locked-In Premium Advantage: One of the most significant benefits of term insurance is the ability to lock in low premiums early in life. Porting (if it were allowed) at an older age would nullify this benefit.

In short, even if term insurance porting were possible, it would introduce more risk than reward. You're better off carefully comparing plans upfront or speaking with an expert before making a switch.

Even if term insurance porting were allowed, it wouldn't be worthwhile—there are no continuity benefits, you’d face new underwriting risks, and you'd lose the advantage of locked-in premiums.

What can you do instead of porting your term insurance?

Since porting isn’t possible for term insurance, your only real option is to start fresh, but even that comes with caveats.

Here’s what you can actually do:

1) Buy a New Policy & Stop Your Current One

You can discontinue your existing plan and buy a new one, but this involves fresh underwriting, possible medical tests, and higher premiums due to your increased age or health conditions. Plus, there’s always the risk of being declined. Therefore, it would be wise to purchase a new policy first, get approved for it, and then cancel your previous policy to avoid coverage gaps.

2) Reduced Paid-Up Option (Only in TROP Plans)

In some Term Return of Premium (TROP) plans, you may have the option to convert your policy into a Reduced Paid-Up (RPU) policy. This means you can stop paying future premiums, but the policy will continue with a reduced sum assured, calculated in proportion to the total premiums you’ve already paid. This feature is useful if you’re unable to continue premium payments but still want to retain some level of life cover.

Example: Suppose you bought a 20-year TROP policy with a sum assured of ₹20 lakh and an annual premium of ₹20,000. If you paid premiums for 10 years (₹2 lakh total) and then opted for reduced paid-up, your new sum assured would be: ₹20 lakh × (₹2 lakh / ₹4 lakh) = ₹10 lakh Here, ₹4 lakh is the total premium payable over the policy term.

Note: Not all insurers offer this feature, and the formula for calculating the reduced sum assured may vary across companies.

3) Surrender the Policy (If Allowed)

For some limited-pay, TROP, or zero-cost (during a specific window) term plans, surrendering is allowed. In such cases, you might receive a refund of base premiums (in zero-cost variants) if you exit early and haven’t made a claim. The detailed value of the surrendered amount is available in the benefit illustration document, often attached to the policy document.

Switching term insurance isn’t as easy—or beneficial- as switching health insurance. There’s no portability, and the alternatives involve costs, risks, and trade-offs. That’s why it’s critical to choose the right plan at the very beginning — or get expert help before making any changes.

Since porting isn’t allowed in term insurance, your alternatives include buying a new policy (with fresh underwriting), opting for a Reduced Paid-Up option in TROP plans, or surrendering if allowed — each with trade-offs in coverage or cost.

Below is a list of the top 5 term insurance plans to make your choice a little bit easier:

Best Term Insurance Plans in 2025

 

Insurance Plan	Insurer Metrics Average (FY 21-24)	Coverage and Riders
Axis Max Life Insurance Smart Term Plan Plus	CSR: 99.5% ASR: 96.2% Solvency Ratio: 1.9 Complaint Volume: 7.3 per 10,000 claims	Accidental Death Benefit, Critical Illness Cover (64 illnesses), Regular or Smart Cover (1.5X coverage for first 15 years), Women's Perks (Lifeline Plus & Maternity Cover), Waiver of Premium on Disability or Critical Illness, Zero-Cost Exit Option, No Inflation-linked Top-Up
Bajaj Allianz Life eTouch II	CSR: 99.11% ASR: 93.5% Solvency Ratio: 5.1 Complaint Volume: 4.4 per 10,000 claims	Accidental Death Benefits, Life Stage Benefit (increased coverage after marriage/childbirth), Critical Illness Coverage (60 illnesses), Waiver of Premium on Permanent Disability (accident-related), Zero Cost Option
ICICI Prudential iProtect Smart	CSR: 97.52% ASR: 95.1% Solvency Ratio: 2 Complaint Volume: 14.3 per 10,000 claims	Accidental Death Benefits, Life Stage Benefit (increased coverage after milestones like marriage/childbirth), Terminal Illness Payout, Critical Illness Cover (34 illnesses), Zero Cost Option, Waiver of Premium on Permanent Disability (accident-related)
HDFC LIFE Click 2 Protect Super	CSR: 99.2% ASR: 93.9% Solvency Ratio: 1.89 Complaint Volume: 2 per 10,000 claims	Accidental Death Benefits, Disability & Critical Illness Waiver, Total Permanent Disability, Inflation-linked cover, Critical Illness Cover (60 illnesses, 90-day waiting period), Terminal Illness Benefit, Return of Premium Option.
TATA AIA Sampoorna Raksha Promise	CSR: 98.91% ASR: 95.1% Solvency Ratio: 1.9 Complaint Volume: 3 per 10,000 claims	Accidental Death Benefit, Critical Illness Coverage (40 illnesses), Total Permanent Disability, Waiver of Premium on Critical Illness/Permanent Disability, Life Stage Benefit, Partial Terminal Illness Payout

Talk to Ditto for the Right Term Insurance

At Ditto, we’ve assisted over 3,00,000 customers with choosing the right insurance policy. Why customers like Piyush below love us:

✅No-Spam & No Salesmen

✅Rated 4.9/5 on Google Reviews by 5,000+ happy customers

✅Backed by Zerodha

✅100% Free Consultation

You can book a FREE consultation here. Slots are running out, so make sure you book a call now.

Ditto’s Take

Worried About Your Insurer's Financial Health? You Don’t Need To Be.
All life insurance companies in India are regulated and backed by the IRDAI (Insurance Regulatory and Development Authority of India). That means:

Insurers are required to maintain a minimum solvency ratio of 150% — a buffer to ensure they can meet their future claim obligations.

The IRDAI conducts regular audits and stress tests to monitor financial strength, liquidity, and claim-paying ability.

In rare cases where an insurer faces financial trouble, IRDAI can step in to protect policyholders, including transferring policies to a stronger insurer, as seen in past interventions.

So if you're holding back from continuing your old term policy just because the insurer seems “small” or less visible today, remember:

You're not on your own. Every licensed insurer operates under IRDAI’s regulatory safety net.

Stick with your existing plan if the coverage still fits your needs, especially if you've locked in a low premium. You don't need to exit just to chase a bigger brand.

Conclusion

In most cases, continuing with your existing plan — especially if you bought it a few years ago — makes far more sense. That’s because:

• You’ve likely locked in a lower premium based on your younger age and healthier profile at the time
• Premiums are fixed for the entire term, protecting you from future cost hikes
• You’ve already cleared the underwriting and may have completed the contestability (moratorium) period

Make the right choice from Day 1 — or consult an expert to avoid expensive regrets later.

FAQs