In InsuranceSamadhan.com’s A-Z Blog series on Insurance topics, we try to provide all vital information related to the Insurance sector and demystify certain myths related to the sector. In today's blog, we are sharing detailed information regarding – Insurance Checklist – and everything that one needs to know.
Insurance is an integral part of financial planning. Your all dreams can remain unfulfilled if not supported with Insurance. We all face many risks in life and face the consequences of emotional and financial loss. We cannot control the emotional loss but financial loss can be managed by transferring the risk to a pool by a system called Insurance.
Insurance is a well established system of risk management where many people create a pool and compensate for the loss of few. Insurance Company works as Manager of Pool and not as beneficiary of money. This system is well regulated by IRDA under an Insurance Act.
Insurance Checklist 2020 for Every Policyholder in India
So go ahead and buy insurance for all risks in life be it Life, Health and General. However always follow the checklist as given below:
Choose your Insurance Advisor with lot of care, check knowledge, passion and commitment
Always demand an Identity card and license.
Do not buy any insurance sold through phone calls, distance marketing. Insurance is a matter of solicitation. Insurance cannot be sold by giving any offer or incentives or loan. If these offers are made then understand they are committing a fraud.
Let them do a need analysis to identify your requirement. Assume you do not know anything about Insurance and ask questions.
Ask four questions and you will be sure of your insurance product:
Which risks are covered?
What are the exclusions?
What is the sum assured?
What is the annual premium
Also Read: Motor Insurance Buying Checklist for 2020Always choose annual mode of premium, you pay more on other modes. Buy ULIP on monthly mode to give you rupee cost averaging
Always declare all facts as known to you at the time of taking insurance. Do not hide any facts. Prefer to fill the form yourself. Nowadays all insurance forms are filled digitally and a filled form is sent to you for verification. You should read the form fully then give your confirmation. If you are not satisfied,then do not give confirmation. Do not follow “Chalta hain“. Your proposal form is the basis of contract.
Think before agreeing for ECS. Remember you lose one month grace period and your right to cancel the payment, if need arises. Your bank will not be able to stop your ECS, only Insurance Company can stop after your request.
Always prefer a medical test.
Once a proposal is applied, you receive a verification call from the Insurance Company. They are supposed to check whether you have understood the product feature and benefits. Ask all questions which are in your mind, do not believe in any advice from the seller. You are cross checking all promises.
Now your policy is issued and a policy document will be sent to you with all details. Please read the Policy Document fully. Check all promises which were made to you. All Insurers give you a fifteen days free look period to cancel your policy and get your refund of premium paid with minor deductions. Please note that free look cancellation in ULIP is subject to market risks and you will receive only fund value.
Please note that your life insurance contract are subject to Section 45 of Insurance Contract and no claim can be denied after 2 years of Policy. In the same way, no claim in Health Insurance can be denied after 8 years of Policy.
Do not fall in the trap of Portability of Health Insurance. If you are not satisfied with the existing Health Insurer then go for Portability but give all declarations, rather offer more declarations so that there is no denial of claim. The above 8 year clause will not apply under portability.
In case of any dispute, approach the nearest Ombudsman office if your claim amount or dispute amount is less than Rs 30 lakh.
Read Policy terms and Policies which guide you on all possibilities.
In all cases, Insurance Samadhan is always there to help you. We have helped resolve over 13,500 customer grievance cases in the past related to all types of Insurances, ULIPs and other financial products.
At Insurance Samadhan, we find solutions to any insurance-related issue that include lapsed insurance policy, assistance in case settlement, claim recovery in case of insurance fraud, assistance to NRI's in servicing their policies, and much more