While insurance policies can certainly bring peace of mind, it is important to stay alert and aware during your insurance policy term. Why? Read on to find out!
Purchasing an insurance policy can certainly give you and your family peace of mind, safe in the knowledge that you will be covered against certain losses or unfortunate occurrences. However, it is important that you constantly stay aware during the policy term.
Here are some important questions you need to ask yourself to get the most out of your policy:
What are the things I should keep in mind as a policy holder?
- How can I ensure that I get the right benefit from my policy?
- What do I do in case of loss or lapse of my policy?
- What’s the best way to maintain my policy?
- What are the malpractices I should be aware of?
- What should I do in case I receive any fraudulent calls?
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 Life Insurance cover and also the benefit of tax saving.
For Unit-Linked Plans, you need to stay invested for about 10 – 15 years to enjoy benefits, because premium charges decrease while investible premium amount increases.
What do I do in case of loss or lapse of my policy?
If you lose your policy bond, 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 bond.
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 to revive it. It is always advisable that you revive your policy and continue to enjoy its benefits.
Additional Reading: 8 Reasons Why You Should Buy Life Insurance
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 like premium notices, discharge vouchers for maturity and survival benefits etc.
- 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.
- All Life Insurance products do not provide loan facility, so do double check any such claims.
- Crosscheck any suspicious refund calls or policy replacement with your insurer.
Additional Reading: How To Know Which Type Of Insurance You Need
What should I do in case I receive any fraudulent calls?
Please note that the IRDA or any 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.)
Keep this list of questions handy at all times during your policy tenure so that you are always ahead of the curve. After all, knowledge is power!