The choice to purchase a life insurance policy to protect one’s financial dreams and aspirations is a wise decision. It is also important to purchase insurance according to financial needs.
Life Insurance : Things You Need to Know Before Buying an Insurance Policy
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3. The choice to purchase a life insurance policy to protect one’s financial
dreams and aspirations is a wise decision. It is also important to
purchase insurance according to financial needs. Buying an insurance
policy is not easy as one cannot understand all insurance products
available in the market. As a buyer of life insurance, you have the right
to understand the financial aspects for which a solution is proposed to
you.
4. IRDA has made it compulsory for insurance companies to provide an
illustration at the time of the sale. Please ask your agent to explain the
illustration and understand the various benefits available under the plan
you are purchasing. You are entitled to see and understand the sales
literature approved by IRDA containing UIN (Unique Identification
Number). You are requested to insist on sales literature and read the
same while purchasing a life insurance policy.
Life Insurance contract is a contract of utmost good faith, wherein it is
your duty to inform the insurer of any medical or financial facts. Please
read the proposal form after it has been completed and confirm that all
answers are correct and that there is no false information in the proposal
form. This is important as the claims will be payable only when utmost
good faith is exercised while purchasing life insurance and there is no
fraudulent intent in answering questions in the proposal form.
Once you receive the policy document, you need to read the same and
ensure that the policy document matches the cover sold to you. The
following terms in the policy will help your understand your policy
document better.
5. In case you find that the general terms and conditions of the
policy document does not match with the cover sold to you,
you have the option of returning the policy document to your
life insurance company stating the reason within 15 days from
the date of receipt of the policy document. On receipt of your
letter stating the reason for cancellation along with your policy
document, the company shall arrange for return of the
premium paid by you after deducting charges as provided in
IRDA regulations for protection of policyholder’s interest.
6. It is critical that you check all the information provided by you is
correct in your policy document. This includes your name, age,
address, date of birth, etc. If you find any error, you need to inform
your agent or customer service department of the insurance
company immediately.
7. A nominee is the person designated by the policyholder to receive
the proceeds of an insurance policy, upon the death of the insured
i.e. policyholder during the term of the policy. You can change the
nominee during the policy term, and if you decide to do so, please
inform the insurance company’s customer service department.
There is a process for change of nomination and you will be guided
by the company to make a valid change of nomination.
8. During the policy term, if there’s change in your address, telephone
number or email address, you should inform your life insurer so that
it’s updated to make sure you do not face any hurdles during the
claim. Documentary evidence of the new address may be required
for compliance with AML guidelines.
9. If you have invested in unit-linked life insurance policy (ULIP), you
can track the performance of your funds. Every insurance company
publishes unit prices on daily basis on their websites and
periodically in business dailies. If you have invested in a traditional/
conventional life insurance policy, you can check if the policy comes
‘with profit’. If yes, you can ask your agent to educate you on the
yearly bonus declaration.
10. Grace period refers to the time period provided by life insurance
companies to pay your premiums if you fail to pay your premium on
a specified premium due date. Grace period may range from 15 to
30 days from the due date. Please refer to the policy document for
the days of grace allowed under the plan purchased by you.
11. Your policy would mature at the end of the policy term you
have chosen and on your chosen retirement (vesting) date.
You can redeem your fund value along with sum assured, and
other benefits as defined in your policy document. In case of
unfortunate demise of the policyholder, the family members of
the policyholder should contact the life insurer with the
original policy document, claimant's photo identity and
address proof, copy of death certificate by local authority. The
sum assured and other benefits are paid to the nominee
mentioned in the policy document. It is important to keep the
policy document safe.
12. The life insurance cover that you bought is very valuable for
you and your family. If the cover is lost by non fulfilment of the
policy conditions, then you may not be able to purchase a
new cover at the same rates or you may not be eligible for
insurance because of your health conditions. It is important to
understand the terms and conditions of the cover and
maintain the life cover to safeguard yourself and your family.
Source : http://blog.hdfclife.com/things-you-need-to-know-
before-buying-life-insurance-policy-532300
13. To know more visit:
https://www.bajajallianz.com/Corp/life-insurance/life-insurance-calculator.jsp
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