Few Guidelines for Life Insurance Buyers

Life insurance buyers should know that it does not deliver any instant gratification. Generally, it is sold on the basis of commitment made by insurance companies in India for events which may occur in the long run. The insurance document is an agreement between the policyholder and the insurer that assurances certain amount of payments in case specific circumstances are fulfilled.

Insurance service provider must assist the insured person’s family in completion of claim requirements at the time of the incident. This policy is like a contract of trust where insured should help in correct decision-making by giving all the required details. Insurance protects the chances of a person getting ill or dying.

If the risk is higher, then the premium is also higher. An individual with high risk paying low premium by hiding critical details is liable for penalty. Below are few guidelines an insured must follow:

• Right Information

While filing and signing a proposal form, buyer must check all details since he or she will be accountable for providing wrong information.

• Nomination

The insurer is discharged for its liability when it pays the sum assured to your beneficiary registered under a procedure established by the Insurance Act, 1938. Policyholders should know that a life insurance claim without a beneficiary cannot be settled and all insurers demand evidence that the claimant is the correct person to receive the policy benefits.

If policyholder has mentioned somebody as nominee to receive the benefits at the time of demise, claim benefits are paid to the 1^st legal heir as per the policy document. Amount will be received by the policyholder in case of maturity.

• Documentation

Submit all necessary documents to file a life insurance claim. These documents under any online term insurance India death claim come under the following categories:

Policy related documents

Documents that prove the occurrence of the event does not come under exclusions specified in the insurance agreement.

Identity proof of the claimant

Insurers cannot settle a life insurance claim until all essential documents are submitted by the policyholder. If insured person failed to submit original policy document, then there is another way to get the documents certified. Insured people must pay their premiums on time to conveniently avail maturity claims.

During the policy period, if the address or contact details change, policyholders should get it updated in the company records. Insurer will contact the insured when the plan would be due for its maturity to close the required documentation. Some issues which can result to delay are dispute between insurer and claimant, non-disclosure of facts and nomination not specified at application stage etc.

[Source: http://blog.policyboss.com/term-insurance/guidelines-life-insurance-buyers/]