Know the details before buying a policy

By | April 11, 2022

Before buying any type of insurance policy, it is important that you know the answers to some difficult questions, which will help you to understand the policy and give you peace of mind for the duration of the policy. So let’s see.

Charges and covers

If you are buying a term policy, your life insurance should be 10 times your annual income. While insurance cover for other policies like child plan or retirement plan should be prepared keeping in view your future financial needs. It is also important to consider your bank account.

What to keep away?

Each insurance policy is different, so two policies are not necessarily the same. Before buying any policy, consider some of the things that are excluded. Read the policy document carefully and understand every detail carefully. Most of the rules are the same in many policies and some things are not usually covered in the policy. E.g. Suicide within one year of taking the policy, Deaths during battle chores, deaths due to drugs, etc. are not covered.

Every insurance company charges someone for an insurance policy. There are four main charges, the premium allotment charge, the motility charge, the fund management charge (if any) and the commission paid to the agent. It is understandable that all these charges are deducted from the policy account. The fund management charge and the policy administration charge remain constant, while many charges are gradually reduced.

Document and Premium

When a claim is made, it is extremely difficult for us to have every policy document. Claims could be denied due to non-receipt of any documents. If you ever lose any of your policy documents, get a copy immediately. In general, the company also has a ‘Duplicate Policy Request Form’, which can be easily accessed from any website. Can be downloaded. You can also call customer care.

With regard to premiums, there is hardly any change in the amount of premium during the policy period unless it is accurately stated in the policy but there are many policies in which you can change the payment of premium. You can pay monthly, quarterly or annual premium or you can also pay premium by dividing it periodically.

You can use this option if you ever have a financial obligation and have difficulty in paying regular insurance premium. There is also an option called “Top-up”. Which also increases your savings with the policy. E.g. As if you have any sudden benefit you can add it to the policy fund. Which increases your overall fund value. Under the new rules, you can get life insurance by paying a 1.25 times top-up premium.

If you need to change your heir during the policy term, you can change or add a heir through a simple process, usually through the “Change of Nominee” form.

Your life with a cigarette or alcohol addiction can be difficult to determine the amount of your premium. Yes, there is no change in premium if this habit is given after taking the policy. However, in health cover a person needs regular medical check-ups, and his premium depends on his current lifestyle.

Policy Cancellation

It is possible that the policy may be canceled if you miss out on the premium due to personal financial difficulties. However, the insurance company gives you the option to pay the premium up to 15-30 days without any penalty. Even if the premium is not paid, the chances of the policy being canceled are increased, but even after the policy is canceled, the company is given the opportunity to resume the policy within a specified time frame.

In that case, the insured may be re-examined by the insurance company for a health or medical checkup. Based on this report, the insurance company may increase the amount of premium or even refuse to renew the policy.

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