As we head towards the end of the financial year, it’s quite likely you’re going to buy a life insurance policy. Many Indians favour life insurance for the triple benefits of tax savings, investment, and life cover. Let’s take a look at some essential steps to take once you receive the policy document in your hand. If there is something amiss with it, you can take immediate corrective actions and save yourself trouble down the road.
Is the policy as per your expectations?
With the sheer range of life insurance products out there, it’s easy to get things mixed up. Perhaps you wanted a term plan and ended up with a unit-linked insurance plan (Ulip). Perhaps you wanted a child education plan, and received a retirement plan. Make sure the policy is what you had expected it to be. Check the key policy benefits such as sum assured, policy term, and the premium amount and ascertain they are as per your expectations. If you have doubts, call the insurance company and get your answers.
Are the personal details, nominee details correct?
If you have shared your personal and nominee details correctly, it would lead to a smooth claims process. Remember that you will not be around when a claim is made. It is your family who will need to bear the brunt of any mistakes in the policy details. Therefore, check if your policy document contains all your personal information, bank details, contact details and nominee details correctly. If not, you can contact your insurer to have these corrected as soon as possible. This will help avoid any confusion during the claims process.
Have you told your nominees?
Your family would make an insurance claim in your death. While they are grieving losing you, they should be spared the additional strain of not knowing what monies you have left behind for them. Whenever you buy a new life insurance policy, always inform your nominees about it. The policy document should be stored in a safe place accessible to your nominees. Additionally, you must also explain to them the benefits of a policy.
Automate premium payments
If you have several insurance policies, keeping track of their due dates will be undoubtedly exhausting. You can save yourself these hassles by automating your premium payments via your bank or credit card. This will ensure that your policy remains in force and your nominees receive its benefits. Also, evaluate your life cover periodically. Ideally, you should do it once every five years so that your life cover is in tandem with your lifestyle, income, and family’s long-term money requirements. If it’s not, buy additional covers.
Unhappy with policy? Use free look period
It is possible that you are not satisfied with your policy or have been sold a product you did not want. There is recourse for you. However, you must act fast. You can get a refund by simply returning the policy within 15 days, or 30 days in case the policy is issued through a distance marketing channel.
The writer is CEO, BankBazaar.com