What should I look before I decide to buy a policy?
You must check and see whether or not there is the availability of guarantee of return, what the lock-in period is, details of premium to be paid, what would be implications of premium default, what the revival conditions are what the policy terms are, what are the charges that would be deducted, would loan be available, etc.
What is the importance of a proposal and the disclosures made therein?
The disclosures made in a proposal are the basis for underwriting a policy and therefore any wrong statements or disclosures can lead to denial of a claim.
How is Surrender Value calculated in Conventional Life Insurance Policy?
Surrender Value is allowed as a percentage of this paid-up value. Surrender value is calculated as per the surrender value factor, which depends on the premiums paid and elapsed duration.
How is the Loan on Policy calculated under Conventional Life Insurance Policies?
If the policy conditions permit a grant of loan, the loan is sanctioned as a percentage of the Surrender Value.
What are the requirements to be submitted in case of a Maturity Claim?
Usually, the Insurance Company will send intimation attaching the discharge voucher to the policyholder at least 2 to 3 months in advance of the date of maturity of the policy intimating the claim amount payable. The policy bond and the discharge voucher duly signed and witnessed are to be returned to the insurance company immediately so that the insurance company will be able to make payment. If the policy is assigned in favor of any other person the claim amount will be paid only to the assignee who will give the discharge.
What is meant by settlement options?
Settlement option means the facility made available to the policyholder to receive the maturity proceeds in a defined manner (the terms and conditions are specified in advance at the inception of the contract).
What documents are generally required to be submitted in case of death of the life assured while the policy is in force?
The basic documents that are generally required are death certificate, claim form and policy bond, Other documents such as medical attendant's certificate, hospital certificate, employer's certificate, police inquest report, post mortem report, etc. could be called for, as applicable. The claim requirements are usually disclosed in the policy bond.
