Wondering how much coverage is enough to safeguard you and your family’s health?
Questions you should ask before making a financial commitment.
What am I buying?
How much cover do I need?
Your cover is the extent of protection that your loved ones will receive, simply put it’s the funds that your family will need to maintain their lifestyle in your absence. A few simple questions can help you find out what is the right cover for you.
- How much of the family income do you provide?
- How many people are financially dependent on you?
- What are your current liabilities?
What do I need to pay and for how long?
You will need to pay premiums, the amount that you invest for your policy, regularly for a specific time period known as the ‘Pay term’ which depends on the type of policy you purchase. You can have Single Pay which requires you to pay a one-time premium or Regular Pay where you need to make multiple payments. A regular pay term can be monthly, quarterly, half-yearly or annual. Your pay term is different from your Policy Term which is the tenure of the policy. Do determine the policy term and the pay term before signing up. Only commit what you are comfortable committing on an annual basis over the long term.
What are the benefits of my insurance policy?
The sales brochures and other promotional material can help you understand the benefits of your policy, always ask for the policy literature provided by the insurer.
Your policy benefits depend on the type of policy you chose such as term insurance, or a unit linked insurance product. It’s always advisable to read and understand the risk factors, terms and conditions of the plan. When in doubt ask your advisor to explain the details or contact the insurer.
What should I keep in mind while filling the application form?
Verify all the policy details before signing up for your policy. It is in your interest to provide correct information regarding your personal, medical and contact details to ensure smooth policy processing and a hassle-free claim processing in the long run. While filling the form, always remember to:
- Check and fill the necessary details yourself and only then sign.
- Ensure that your details match the KYC documents submitted by you.
- Complete the nominee details and inform your nominees.
What are the malpractices I should be aware of?
Always keep in mind the following:
- Do not fall prey to promises of guarantee unless specifically mentioned in the product material.
- No insurer can offer rewards or discounts on a policy purchase
- Always check the advisor license if he has not been referred to you
- Inducement to purchase insurance is illegal, in case you come across such instances immediately inform the nearest police station and lodge a complaint against the person.
Immediately check, to avoid surprises in the future!
What are the things I need to check immediately after receiving my policy?
Is my policy as per my expectations?
To ensure that you have received the policy that you expected, it is advisable to immediately review your policy document. Check for some key benefits like Sum Assured, Policy Term, Premium amount & Pay term to ensure that it is as per your need. If you have any doubts, call the insurance company to enquire/confirm the same.
Are my personal details & nominee details accurate?
Accuracy makes for easy claim. Your policy document contains all your personal information, bank details, contact details and nominee details so do ensure that it is accurate and updated from time to time. This will help avoid any confusion during the claiming process.
Have I informed my nominees about the policy and stored the documents safely?
In case of an unforeseen circumstance, your family deserves utmost ease. Store your documents in a safe and accessible place and ensure that your nominees are aware of the policy details, benefits and all documents are easily accessible. This helps in avoiding unnecessary delays and makes for a smooth claims process.
What are the key things I should remember as a policy holder?
A few things that are important for you to practice are:
- Keep a list of all the policies you own and standard claims practices along with your policy documents so that your nominees can find all information at one place.
- Pay your premiums regularly; it will help you get the right benefit out of your policy.
- Evaluate your cover every 5 years, just like your lifestyle – your cover needs an upgrade.
After Buying Policy
What are the things I should keep in mind as a policy holder?
How can I ensure that I get maximum benefit from my policy?
Insurance benefits you only in the long-term. It is also important that you pay premiums regularly to enjoy benefits. Missing a payment may leave you without health insurance cover and also the benefit of tax saving.
What do I do in case of loss or lapse of my policy?
If you lose your policy document, report it to the insurance company immediately. You can get a duplicate policy by complying with the formalities. The duplicate policy confers the same rights as the original policy document. If you are unable to pay the premium in time, your policy may lapse. You can contact the insurance company through your advisor or directly for reviving it. It is always advisable that you revive your policy and continue to enjoy its benefits.
What’s the best way to maintain my policy?
As a policy holder, you should know the following:
- Your contact details must be updated with the insurer so that you can be reached for any service offerings and communication.
- Your nominee details must be updated at all times so that the insurer can ensure a hassle free claims experience for your family.
- In case your agent is not being responsive to your queries and requirements, you always have the option of contacting the insurer directly.
- You must evaluate your protection cover every 5 years, as your cover needs to keep pace with your increasing responsibilities.
What are the malpractices I should be aware of?
Don’t fall prey to temptation/inducements/hoaxes/threats without checking the truth behind calls/claims. Here are a few things you should know:
- No insurer can offer rewards/discounts on giving up your policy for another one.
- Surrendering your policy is never a good idea if someone is offering you a reward or inducement.
- Cross - check any suspicious refund calls or policy replacement with your insurer.
What should I do in case I receive any fraudulent calls?
Please note that IRDA or an insurer would never make calls for additional benefits, declaring bonus, surrendering policies etc. Do not believe such fraudulent calls, always cross-check all scheme related information and benefits either on the company’s website or by visiting the branch. In case you receive such calls, immediately lodge a complaint by calling your insurance service provider with the details of the caller (phone number, name of the caller etc.)