Term Insurance Portability: Can You Port in India?

Overview

You cannot port a term insurance policy in India. Unlike health insurance, IRDAI regulations do not allow transferring a term plan from one insurer to another while retaining the same policy conditions, premiums, and benefits.

You must buy a new policy and then cancel the old one to change insurers. For instance, if you have a term plan under HDFC Life and want to switch to Bajaj Life, you must apply for a new policy and cancel the earlier one.

Canceling plans is also not advised due to premium and insurability lock-in restrictions under Section 45 of the Insurance Act.

That said, the question of term insurance portability is valid. This guide is ideal for individuals who want to know what their options are if they want to change their plan.

Portability in insurance means you can switch your policy from one insurer to another without losing the benefits you’ve already built up. This is mainly available in health insurance (not term insurance), and it protects things like waiting and moratorium period credits, so there is no break in cover.

Now, let’s understand more about the nuances of term insurance portability and other IRDAI regulations that protect the interests of policyholders.

Can You Port a Term Insurance Policy in India?

No, term insurance portability in India is not possible. Term insurance also works differently from health insurance. There are no waiting periods to carry forward, no accumulated bonuses, and no continuity benefits of that nature.

Premiums are locked from a younger age, and moving to a new insurer would mean buying a fresh policy based on your current age, health, income, and underwriting profile. There is no shortcut around this.

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Why Term Insurance Cannot Be Ported Like Health Insurance?

No Regulatory Framework for Term Portability: IRDAI has clear guidelines for health insurance portability, but there is no framework for term insurance.
Term Plans Have Fixed Premiums: You usually buy a term plan when you are young and healthy, and the insurer fixes a level premium for the entire policy term after analyzing the risks. There are no meaningful waiting periods or bonuses to carry forward if you “port” the plan.
Pricing Issues: If you move to a new insurer later, especially at a higher age, the insurer would have to reassess your risk from scratch. This can significantly affect the premium you pay based on your age, health, and lifestyle habits.

What to Do If You Are Unhappy With Your Term Insurer?

Step 1: See Where You Are in the Policy Timeline

1) Within Free Look Period (30 Days)

If the plan feels mis-sold or you simply don’t want it, cancel within the free look period.
You’ll get your premium back after deducting stamp duty, risk premium for days covered, and medical costs (if any).
If you catch the issue this early, exiting and choosing a better plan is usually the smartest move.

2) Within the First 1–2 Years

Pure Term: If you stop paying, the policy lapses, and you don’t get anything back.
Term Insurance With Return of Premium (TROP)/ Limited Pay: There may be a small surrender value after a minimum period, but in the early years, it’s usually not much. So your main loss is the premiums already paid.

Before switching, make sure to check if your health has changed since you bought the plan. This also involves considering if you will qualify for a new plan at a similar or reasonable premium. If health is good, switching is easier. If it has worsened, giving up your existing cover can be risky.

3) After 3+ Years

You’ve already locked in a premium at a younger age.
You’ve spent a few years inside the policy and fully covered the Section 45 provision, which makes the policy harder to question later.

At this stage, for many people, continuing the plan often makes more sense than trying to replace it.

Step 2: Know Your Practical Options

1) Buy a New Policy First, Then Tweak the Old One

Apply for a new term plan that actually fits your needs today.
Complete medicals and underwriting, and wait till the new policy is issued and active.
Once that’s done, you can consider reducing the old cover or letting the old policy expire.

This way, you’re never left without cover if the new insurer rejects you, increases the premium sharply, or adds restrictions around cover amount, tenure, or riders.

2) Use Reduced Paid-Up (RPU) in Some TROP Plans

In some TROP policies, you can stop paying premiums and convert to a reduced paid-up. The policy continues with a lower sum assured, in proportion to the premiums already paid. Here’s an illustrative example:

The sum assured is ₹2 crore, with ₹8 lakh paid over 20 years as the total premium.
You’ve paid ₹4 lakh (50%).
New sum assured = ₹1 crore (about 50%).

3) Surrender the Policy

Some products, like limited pay, TROP, or zero-cost term plans, allow you to surrender during specific ages or years. You can get back the base premiums minus the rider costs, depending on the product rules.

The exact surrender value is shown in your benefit illustration. Always check this before deciding.

Risks of Canceling Your Current Term Policy

Your Health May Have Changed

A new insurer will assess your health as it is today. If you have developed diabetes, hypertension, heart issues, or any other medical condition since then, they may charge a higher premium, add restrictions, or even reject your application.

Your New Premium Will Be Higher

Term insurance premiums increase with age. Even if a new plan looks cheaper at first glance, the final premium may be higher because you are now older than when you bought your existing policy.

You May Lose the Protection of Section 45

If your current policy has completed 3 years, the insurer has limited grounds to question or reject a claim under Section 45 of the Insurance Act. But when you buy a new policy, this 3-year protection period starts all over again.

You May End Up With No Cover

If you cancel your existing term plan before the new one is issued, you risk being uninsured. If the new insurer delays, charges extra, or rejects your application, your family may be left without protection.

How to Safely Buy a New Term Policy While Keeping the Old One

Do Not Leave a Coverage Gap: Cancel, reduce, or stop paying for the old plan only after the new policy is in force.
You Can Hold Multiple Term Plans: You can keep multiple term plans, as long as your total cover is justified by your income, liabilities, and financial responsibilities.
Disclose Existing Policies Honestly: Always mention your existing policies and share income proof to avoid issues during underwriting or at the time of claim.

Common Mistakes to Avoid When Switching Term Insurers

Do Not Switch Only for a Lower Premium: Compare the insurer’s claim record, policy features, exclusions, riders, flexibility, and overall value before switching.
Do Not Ignore Policy Features: A new policy should offer better benefits, higher suitability, or clearer terms, not just a lower premium.
Do Not Switch Without Understanding the Real Problem: Speak to your insurer or a Ditto advisor first to see if the concern regarding a feature, premium, or claim can be resolved without disturbing your coverage.
Do Not Rely on Brand Size Alone: Look at the metrics like Claim Settlement Ratio (CSR), Amount Settlement Ratio (ASR), complaint volume, and overall service experience before making a decision.

Take a look at the infographic below to learn more about the performance metrics that help you understand if a term insurer is reliable enough.

Did You Know?

To protect consumer interests, IRDAI actively monitors the minimum solvency ratio of 1.5x for every insurer to reduce bankruptcy risks. In the rare event of a severe financial crisis, the IRDAI intervenes to ensure policyholder rights are fully protected and valid claims are strictly honored. In some cases, the regulator can transfer the entire policy portfolio to a financially stable, large-scale insurer. For example, IRDAI transferred Sahara India Life’s policyholder assets and liabilities to SBI Life in 2023 to protect policyholder interests and ensure continuity of valid claims.

Why Choose Ditto for Term Insurance?

At Ditto, we have assisted over 8,00,000 customers with choosing the right insurance policy. Here is why customers like Vijay love us:

No-Spam and No Salesmen
Rated 4.9/5 on Google Reviews by 24,000+ happy customers
Backed by Zerodha
Dedicated Claim Support Team
100% Free Consultation

Not sure whether to keep, supplement, or replace your existing term plan? Book a free call or chat on WhatsApp with Ditto’s advisors. Slots fill up fast!

Conclusion

Our simple view is that most people are better off keeping their existing term plan and adding more cover if needed.

You can always check how much life cover you really need using our term cover calculator. Then, apply for any new plan and wait for it to be issued and get active.

Later, you can easily think about reducing or canceling the old policy. Remember, once you lose a well-priced old plan, you may not get the same benefits again, especially if your health has changed.

If you are still unsure what to do with your current policy, speak to a Ditto advisor for free and get a simple keep, add, or change recommendation tailored to your income, loans, and family responsibilities.

Frequently Asked Questions

Why do people want to port term insurance?

People usually think about “porting” or switching term insurance when they realize the current plan no longer fits them. This could happen if the policy was mis-sold, if they bought an expensive return-of-premium plan, a long-duration policy until age 85, added unnecessary riders, or later found newer plans with better features. Some may also look for lower premiums, higher cover, better claim service, or a more trusted insurer. Others may simply want to reduce confusion by replacing multiple policies with one clean plan. However, term insurance is not portable like health insurance, so a new policy must be bought first.

If I switch to a new term plan, does the Section 45 protection reset?

Yes, it does. Section 45 of the Insurance Act states that a life insurance policy cannot be called into question after three years from the date of policy issuance, commencement of risk, revival, or rider date, whichever is later. When you cancel your existing plan and buy a fresh one, that 3-year clause resets entirely. This means your family is exposed to contestation risk during the new policy's initial years. At Ditto, we strongly advise against canceling a mature term plan without fully considering the consequences.

What happens to my term insurance if my insurer shuts down or gets acquired?

All life insurers in India are regulated by IRDAI and are required to maintain a minimum solvency ratio of 1.5x. If an insurer faces financial distress, IRDAI has the power to intervene, merge it with another insurer, or ensure policyholder obligations are protected. Your policy does not simply disappear. This safety net includes the power to seamlessly transfer the entire policy portfolio to a financially stable, large-scale insurer, just as the regulator did when transferring Sahara India Life's policyholder assets and liabilities to SBI Life.

Can I port a group term insurance policy to an individual plan if I leave my employer?

No, group term insurance cannot be ported to an individual term plan in India. Group cover is tied to your employer's master policy, and it lapses the moment you leave the organization. If you want individual coverage after leaving a job, you need to apply for a fresh term plan with full underwriting. This is exactly why, at Ditto, we recommend not relying solely on employer-provided group cover. Buying your own term plan while you are young and healthy, independent of your employment status, remains the safest approach for long-term financial protection.

Will I have to do medical tests again if I buy a new term plan to replace my old one?

Yes, most likely. Every new term plan application undergoes fresh underwriting, which typically includes medical tests based on your age, sum assured, and insurer’s guidelines. Many insurers require medical tests for applicants above 35 to 40 years of age or for cover above a certain threshold, often ₹50 lakh or more. If your health has changed since your original policy, this could result in higher premiums, restrictions, or even rejection. This is one of the strongest reasons to buy a new plan before canceling the old one, not after.

Is a return of premium term plan easier or harder to exit than a pure term plan?

It is generally harder to exit cleanly in the early years. A pure term plan lapses with no refund if you stop paying premiums. A Term Return of Premium (TROP) plan may offer a surrender value, but only after a minimum premium-paying period, which varies by insurer and product. In the first few years, the surrender value is typically very small relative to the total premiums paid. Some TROP plans also offer a reduced paid-up option, where the cover continues at a lower sum assured proportional to premiums already paid. Always check your benefit illustration or policy schedule before deciding to stop.

What is the free look period in term insurance, and can I use it to switch insurers?

The free look period for term insurance in India is 30 days from the date of receiving the policy document. If you are unhappy with the plan during this window, you can cancel it and receive a refund of the premium paid, minus deductions for stamp duty, the proportional risk premium for the days the cover was active, and any medical examination costs. This is the cleanest exit option available. If you catch a mis-selling or a policy mismatch this early, canceling within the free look period and applying fresh with a better insurer is entirely reasonable.

Does having multiple term plans affect claim settlement, and do I need to disclose all of them?

Yes, you must disclose all existing term plans when applying for a new one. Insurers ask for details of your current coverage and income proof to assess whether the total sum assured is proportionate to your age, income, and occupation. Concealing existing policies is a material non-disclosure and can lead to claim rejection. That said, holding multiple term plans is perfectly legal and common. IRDAI guidelines do not cap the number of policies you can hold. At Ditto, we recommend using our term cover calculator to figure out the right total coverage before buying a second plan.

Last updated on: 7 Jun, 2026