Why you should stick to your life policy for entire tenure

Allowing it to lapse leaves you unprotected and can, in some cases, cause loss of premiums paid

Persistency level, which shows the percentage of an insurer's policies that are still in force after a certain period of time (say, one year, three years, or five years), is low in India. The median level for five-year persistency in life insurance is 28 per cent (Source: Handbook of Indian Insurance Statistics), which means that half the insurers are able to retain less than 28 per cent of their policies after this duration. The Reserve Bank of India (RBI) Committee on Household Finance, in its recent report, flagged low persistency as a major concern, saying: "Households do not understand the