What should you do if you are not happy with your life insurance policy?
Let’s face it: When we buy something on impulse and regret our purchase then there is enough time to buy life insurance policy is no different. Many people are often unhappy with their life insurance policies about the policy. By giving inaccurate information, without any favorable terms and conditions can be assured, innumerable things can actually be wrong with the life insurance policy.
“What should you do when you are killed in such situation?”
Let us make things simple for you! To get out of such circumstances, you should know five things.
What are these 5 things?
Five Objects are very important when you are not satisfied with your life insurance policy
1 free-period duration
2 Looping Term Insurance Plan
3 Extra rider purchases Associate
4 ULIP and Endowment Policy
5 Changing ULIP and endowment plans in 5 payment plans
So, you have it – when you are not happy with your life insurance policy, then 5 things you should do?
Now, understand these 5 things in more detail! Can we?
Use free look period
IRADA allows a new policy holder 10-15 days to terminate his life insurance contract and receive a refund if he is not happy with any aspect of his life insurance policy. This period is known as the free look period. If you also think that your new life insurance is not what you wanted, then you do not need to be abhorrent and bear it. You can actually return your policy, without penalizing for it.
All you have to do is get in touch with your insurer and inform them in writing that you want to get your life insurance policy return. After deduction of expenses incurred in medical examination and stamp duty, the company will pay your premium. Remember, it is better to return to your policy and get a refund during the free look period than not expecting a full year to end the policy due to non-payment of premium.
- Your exit plan for term insurance
Okay, that’s the deal! In India, term insurance plans are becoming increasingly popular in the insured and around the world. Thanks to all of the pocket-friendly premiums of increasing awareness and term life insurance products. More and more people are now confident in buying term life insurance products. But do you know that the maximum term insurance products have no option to surrender to the policy? Yes! this is true. If you choose to exit your term insurance plan, then you will lose the paid corpus for your premiums. So what if you are not happy with your term insurance plan? Ok, you have two options here; During the free-term period, exit the policy or pay the annual premium payment and ignore the policy.
- Time to ride the benefits of riders
There may be many possible reasons for being unhappy about your life insurance plan, perhaps you are not happy with the policy features or are less disappointed with the sum insured. In such cases, you can buy additional riders to supplement your existing life insurance plan. Will not you have extra burden on your pocket? Yes! This will cost you some extra money, but it will save you from all the problems of returning your policy, between finding a new policy and a waste of your valuable time. Buying a rider will help you consolidate your life’s coverage and you will get many other benefits to ensure a comprehensive and healthy preservation for you.
- Deducting your endowment and ULIP policies
Surrender of your policy is the best way to voluntarily eliminate your policies. Normally endowment and ULIP plans have a lock-in period of three years and the policy surrender facility is available only after completion of three policy years. If you choose to surrender your policy in the first year, you will not get any returns. On completion of the lock-in period, you will get the surrender value, which is calculated based on the premium paid by you. Advice, you may be charged surrender fees and fund management charges, if you are surrendering to the policy in the third year. However, according to the rules set by the IRDA, if you choose to surrender the policy after completing 5 policy years, your insurer will not charge you surrender and fund management fees.
- Changing ULIP and Endowment Plans in a Paid-Up Policy
If you are not really happy with your ULIP or endowment plans then the concept of a paid-up policy can prove to be a boon for you. If you stop payment of premium without surrendering the policy, then your policy receives the status of pay-up. Here, the policy does not eliminate and continue till maturity. However, the benefits available with the policy are proportionally reduced depending on the number of annually for which you have paid a premium. The insurance policy is not liable to pay any bonus if your policy receives paid-up status. But before you get the status of paid-up policy, you will get all the bonuses.
Always choose to invest
Source: Best Home Insurance UK