Insurance Bytes

Sahil – Hey Ravi, what are you thinking? Ravi – Oh, I just received a premium due intimation for my life insurance policy. It is a traditional plan which my father’s friend who is an advisor had sold me some years back. At that time, I did not know much about the various investment options and just proceeded basis what uncle recommended. This policy has very low insurance coverage, very basic returns on maturity but the premium is quite high. I have realized that this plan is not suitable for me. I am not sure whether to continue or surrender the policy as I don’t want to pay any more premiums in this policy. Sahil – I too was in a similar situation like you but fortunately I made my policy paid-up and am investing the premium amount in other avenues which can give me better returns and for my insurance needs I bought a term plan. Why don’t you also make your policy paid-up? Ravi – Paid Up? What’s that? Sahil – Oh, Ok. Let me explain. When you make your policy paid up, y...

Vishwas, a 45-year-old father of two suffered a massive heart attack on his way to work. He was rushed to a hospital however was declared dead on admission. His family was shell shocked at his sudden untimely demise. Coming to grips with their new reality, they submitted a death claim only to receive another jolt. The claim was rejected by the life insurer as Vishwas’s policy was in a lapsed status. Vishwas’s intention of buying a term plan was to take care of the very eventuality that his family was facing. However, a right intention and buying the best plans at the best rates alone does not result in successful claim settlement. This brings us to the question on what is that we need to do to ensure that our loved ones get the death claim benefits should a claim arise. Given below are the reasons for claim rejection and how it can be avoided. Read on: 1)       Careless attitude in filling the application form: The application form is the basis of ...