Are you looking to surrender your policy? Is your insurance policy nearing completion? Here are some important questions you need to ask.
Whether you’re looking to surrender your insurance policy or your policy is nearing completion, there are some pertinent questions that you need to ask before either of these instances take place.
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What should I know at the end of my policy term or closure?
- When am I eligible to receive policy payouts?
- What if I want to surrender my policy?
- How can I ensure my loved ones receive the sum assured, in case of an unfortunate incident?
- What are the documents required at the time of claims?
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When am I eligible to receive policy payouts?
For certain types of policies, on completion of your policy term, you are eligible to receive a payout, this is called the maturity benefit. On completion of your term, you will get intimation from the insurer on the same. You must always keep your contact, nominee and bank details updated for the insurer to contact you and give the policy benefit payout.
Do keep in mind that term plans do not offer a maturity benefit.
Additional Reading: Life Insurance Industry In 2018 – The Expectations
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What if I want to surrender my policy?
Surrendering your policy should be a last resort, since insurance is a long term investment that protects you and your loved ones against risk and uncertainty. Always check your policy lock-in period, before which surrender is not possible.
On surrender, a cash amount called Surrender Value is available on some policies. Term life insurance policies do not offer cash values.
Additional Reading: The Repercussions Of Surrendering Your ULIP Midway
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How can I ensure my loved ones receive the sum assured, in case of an unfortunate incident?
For a smooth claims process, ensure that a list of documents required and all your policy details are kept at one place for the ease of your nominee. Your loved ones are eligible to receive the sum assured in case of an unfortunate incident.
In case the claim is not paid, they can also write back for reconsideration. If they are still not satisfied with the resolution, they can approach the office of the Insurance Ombudsman in your city. It is your duty to keep them informed about your policy details so that it can help them.
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What are the documents required at the time of claims?
A list of documents required at the time of claims is always available on the insurer’s website. Some mandatory requirements are:
- Copy of Death certificate duly attested by the authorised person in the Branch
- Original Policy document / Indemnity Bond in case of Loss of Policy Document
- Claimant’s Statement
- Legal requirements (in case where title to policy monies is not clear)
- Death Abroad Questionnaire (if death has taken place outside India in a foreign country)
- Medical Attendant’s Certificate
- Employer’s Certificate, if applicable
- Copies of Medical Reports of last and previous hospitalizations, if any
Make sure you keep these questions handy when you policy term is nearing completion or if you’re looking to surrender your policy (even though you ideally shouldn’t be doing so).