Things you Need to Look into while Reviewing Insurance Documents
Most of us study an insurance policy beforehand, so that we buy the best term insurance plan or any other type of cover. The first thing we look into is the type of policy. Is it a whole-life cover or a term plan? This is important because each comes with its own unique benefits. Sometimes, you will have options like annuity plans and wealth creation plans as well. So, looking at the type will allow you to decipher its scope and find one that suits you the best.
Reviewing the Document
Once you take into account all the factors and buy the policy you deem is the best term insurance plan, the review does not stop there. You also need to carefully look into the policy document that you get. Study it to ensure that it is exactly what you signed up for. This is because discrepancies might affect your claim amount.
1. Start with the Policy Number: Validate your policy number with the insurance company. This is the reference number that will be linked to your plan in the company’s database. It is using this number that you would need to make referral calls or claims. Make sure to store the policy number via email or on a cloud-based storage option. This will ensure that your plan is easily traceable even if you lose the physical document.
2. Look at the Dates: This is important for a life term insurance policy, especially since such the policy has an expiration date. See if this is the period that you agreed to. If you have taken a whole-life policy, you will have to pay a surrender charge in case you cancel it before a specific period.
3. Premium Terms: The terms of the premium will be mentioned in the policy document. Look at how much you need to pay and how frequently you need to pay. If you used a premium calculator at the time of policy purchase, check if your policy mirrors the figure the calculator quoted. In case you have not understood the terms of premium payment, you can clarify all this with a customer care representative. For instance, you might have opted for a rider. Your policy document must also reflect this. If it doesn’t, you should have it clarified.
4. Insured: You also need to look if the name in the policy is spelled correctly right, else it might be invalid. Also, look at the beneficiaries mentioned. Does it include the dependents you mentioned?
5. Detailed Benefits: Read through the section called Summery of Benefits in your term insurance policy. Look at things like death benefit, additional riders, waiver of premium and other such unique features. Does the policy deed reflect the promised terms?
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| Term Insurance (jagoinvestor) |
Most of us study an insurance policy beforehand, so that we buy the best term insurance plan or any other type of cover. The first thing we look into is the type of policy. Is it a whole-life cover or a term plan? This is important because each comes with its own unique benefits. Sometimes, you will have options like annuity plans and wealth creation plans as well. So, looking at the type will allow you to decipher its scope and find one that suits you the best.
Reviewing the Document
Once you take into account all the factors and buy the policy you deem is the best term insurance plan, the review does not stop there. You also need to carefully look into the policy document that you get. Study it to ensure that it is exactly what you signed up for. This is because discrepancies might affect your claim amount.
1. Start with the Policy Number: Validate your policy number with the insurance company. This is the reference number that will be linked to your plan in the company’s database. It is using this number that you would need to make referral calls or claims. Make sure to store the policy number via email or on a cloud-based storage option. This will ensure that your plan is easily traceable even if you lose the physical document.
2. Look at the Dates: This is important for a life term insurance policy, especially since such the policy has an expiration date. See if this is the period that you agreed to. If you have taken a whole-life policy, you will have to pay a surrender charge in case you cancel it before a specific period.
3. Premium Terms: The terms of the premium will be mentioned in the policy document. Look at how much you need to pay and how frequently you need to pay. If you used a premium calculator at the time of policy purchase, check if your policy mirrors the figure the calculator quoted. In case you have not understood the terms of premium payment, you can clarify all this with a customer care representative. For instance, you might have opted for a rider. Your policy document must also reflect this. If it doesn’t, you should have it clarified.
4. Insured: You also need to look if the name in the policy is spelled correctly right, else it might be invalid. Also, look at the beneficiaries mentioned. Does it include the dependents you mentioned?
5. Detailed Benefits: Read through the section called Summery of Benefits in your term insurance policy. Look at things like death benefit, additional riders, waiver of premium and other such unique features. Does the policy deed reflect the promised terms?
