There are 2 things that you need to check when you receive your term policy document / intimation.
1. Inclusions and exclusions of your policy.
Every term policy need not necessarily cover death under any circumstance.
e.g.
- Some cover death from terrorist attacks, some don’t.
- Some cover death from natural disasters such as floods, earthquake, etc., and some others don’t.
- Some will give you the claim if you die in an accident but were probably a little drunk while driving. Some other term plans don’t.
- Some will allow claim even if you die bungee-jumping in New Zealand, some others will not allow.
- Some will cover you if you were breaching any act of law, while some other term plans don’t.
What about your term policy? Does it cover what it said it would when you were buying it? Check the term policy document – all inclusions and exclusions will be clearly mentioned in it. Ensure that it is exactly the way it was committed to you.
Term Insurance of 1 Crore with 55% Savings
@ just Rs. 5,728 / year*
* for a healthy 25-yr old Non-smoker Male for 25 years.
2. Errors and omissions in your policy document.
It is possible that at times, there could be an error in your term policy document. And some of these could be very critical errors that might result in rejection of the claim itself. Here are some things that you need to check for.
• Your full name – check for spelling errors and that it matches your name as per your identity proof
• Your gender and date of birth – check for errors, especially date and month getting interchanged such as 05/06/1973 becoming 06/05/1973
• The total amount of Sum Assured (or Life Insurance cover) – check if the no. of zeros are correct such as Rs. 50 lakhs should indeed be Rs. 50,00,000 and not Rs. 5,00,000!
• If you have opted for an additional (rider) benefit such as Accidental Death, Disability or Critical Illness, do ensure they are clearly mentioned with their relevant Sum Assured. e.g. Accidental Death Benefit rider for Rs. 30 lakhs.
• Ensure that the premium and its mode (frequency) are correct. i.e. Rs. 25,000 payable every 6 months, or Rs. 48,000 payable every year. Take a note of the next premium due date.
• If you have declared any previously purchased life insurance or term policy either from any other insurance company or from the same insurance company itself, make sure that it is clearly mentioned in the copy of the application form that you get back.
• Most importantly, every life insurance policy (including term policy) comes with a photocopy/printout of the application form that you filled while applying for the policy. This is mandated by the regulator (IRDA). Check the copy of the application thoroughly – and here I mean every little information that you have filled. Has everything you have mentioned been included? Is there any error? Any previous medical condition such as diabetes, any minor surgery, your smoking and drinking habit, your height and weight especially, anything else that you have mentioned while applying – has it been clearly mentioned on the form? If not, and if your death occurs because of a related reason, your claim may be denied on grounds of non-disclosure!
• Sometimes it is possible that you may have provided additional information when the company asked you, by email or through a letter in writing. Please ensure this information is acknowledged by the insurance company and that you keep a copy of the same in your records. Ideally, it is best included in the application form itself.
Ensure both the above checks are conducted the moment you receive your term policy document.
And what if you find out that there is indeed a problem in your term policy document.
– In case there is an exclusion in the policy that you are not okay with, all is not lost. Thanks to the regulator, every insurance policy comes with a FREE-LOOK period. It means that any insurance buyer in India can return the policy back to the insurance company and get a full refund within 15 days of receiving the policy document. Every insurance company in India honors this completely.
– In case there is an error in your term policy document, ensure that you get it corrected by the insurance company. If there is any error in the application form copy that you receive, do ensure that this is corrected as well. You may sometimes receive a confirmation from the insurance company through an email or a letter. Do attach that to the policy document and keep it along with the other papers – remember, if required later, you are not there to explain anything – only such printed communication can help.
Don’t compromise on anything mentioned here. And ensure that the job of protecting your family is complete and perfectly done.
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Nitin, your query is valid. While Exclusions have not been put as a heading, ‘What is not covered by this policy’ actually lists all the exclusions. Whatever is not mentioned in that clause, i.e. everything else is covered. Do note Section K in terms and conditions and ensure that you disclose everything clearly.
In case you are opting for double benefit which includes additional claim payout on death due to accident, read the Exclusions for this additional payout.
Nitin, your query is valid. While Exclusions have not been put as a heading, ‘What is not covered by this policy’ actually lists all the exclusions. Whatever is not mentioned in that clause, i.e. everything else is covered. Do note Section K in terms and conditions and ensure that you disclose everything clearly.
In case you are opting for double benefit which includes additional claim payout on death due to accident, read the Exclusions for this additional payout.
Hi.
I saw the product brochure for HDFC click2protect +. but I could not find inclusion & exclusion items mentioned in the policy except for Accidental Death Benefit. Can you please check as to where I can check this information.
Thanks!
ICICI iProtect and HDFC ClicktoProtect are priced very closely. Check the premium again.
Unfortunately we do not recommend brands or products on this website. We just equip you with all the possible details and facts you will need to decide on the policy.
Use this link to compare and decide.
https://www.mintwise.com/blog/compare-term-insurance-plans-india-2014/
The final decision is yours. Take a judgment call – you are not likely to be wrong.
ICICI iProtect and HDFC ClicktoProtect are priced very closely. Check the premium again.
Unfortunately we do not recommend brands or products on this website. We just equip you with all the possible details and facts you will need to decide on the policy.
Use this link to compare and decide.
https://www.mintwise.com/blog/compare-term-insurance-plans-india-2014/
The final decision is yours. Take a judgment call – you are not likely to be wrong.
Hi, Please suggest me to decide the right vendor to pick the plan among ICICI, HDFC, SBI life and Max. My sum insurance amount is 50 lac and term for 30 yrs. ( Though ICICI and HDfc have same feature and difference between the claim percentage is just 0.5% but still they have 2.5 thousand of premium variation.
Please advise..Thanks in advance.
Hi, Please suggest me to decide the right vendor to pick the plan among ICICI, HDFC, SBI life and Max. My sum insurance amount is 50 lac and term for 30 yrs. ( Though ICICI and HDfc have same feature and difference between the claim percentage is just 0.5% but still they have 2.5 thousand of premium variation.
Please advise..Thanks in advance.
Dear Sridhar,
1. Just curious what is the purpose of taking a duplicate copy of the Insurance policy. It is not required at all. All you need is the policy no. and your proper identification documents. When the policy matures, the due amount is electronically credited bank into your account (for that, ensure you fill up a form which you will get in the Insurance company’s office, and this is recently made mandatory by the IRDA).
Even for a claim, policy document is asked for by the company, but not having it is not an issue at all. Your nominee needs to give proper identification and all other documents asked for.
For your information, some insurance companies are already only sending an electronic copy of the policy document by email when a new policy is bought. You can request the same as well, if your insurance company provides it.
2. In case you still want to get a duplicate policy document, just ask the insurance company for it. You will have to pay stamp duty again.
Hope this answers your queries.
Dear Sridhar,
1. Just curious what is the purpose of taking a
duplicate copy of the Insurance policy. It is not required at all. All
you need is the policy no. and your proper identification documents.
When the policy matures, the due amount is electronically credited bank
into your account (for that, ensure you fill up a form which you will
get in the Insurance company’s office, and this is recently made
mandatory by the IRDA).
Even for a claim, policy document is
asked for by the company, but not having it is not an issue at all.
Your nominee needs to give proper identification and all other documents
asked for.
For your information, some insurance companies are
already only sending an electronic copy of the policy document by email
when a new policy is bought. You can request the same as well, if your
insurance company provides it.
2. In case you still want to get a
duplicate policy document, just ask the insurance company for it. You
will have to pay stamp duty again.
Hope this answers your queries.
Hello,
What is the mechanism to obtain duplicate copy of Insurance policy. Is it not sufficient with the just the policy number or say a copy of the payment receipt (online account with LIC), one can get the sum assured after due date.
what are the best mediclaim policies and term insurance policies.
Hello,
What is the mechanism to obtain duplicate copy of
Insurance policy. Is it not sufficient with the just the policy number
or say a copy of the payment receipt (online account with LIC), one can
get the sum assured after due date.
what are the best mediclaim policies and term insurance policies.
Atul, the best place to check before buying is the product brochure. The Key Features Document should have them as well.
Most term insurance policies cover all kinds of death except suicide in the first year of the policy. Having said that, make sure you check for exclusions before you buy. And in case there is a specific product that you want to check for, let us know.
Atul, the best place to check before buying is the product brochure. The Key Features Document should have them as well.
Most term insurance policies cover all kinds of death except suicide in the first year of the policy. Having said that, make sure you check for exclusions before you buy. And in case there is a specific product that you want to check for, let us know.
In case of Term Insurance,Where we should check inclusion & exclusion in the policy,before buying it???
I have read the policy document for different policies but they didn’t mentioned any specific exclusion for the policy
In case of Term Insurance,Where we should check inclusion & exclusion in the policy,before buying it???
I have read the policy document for different policies but they didn’t mentioned any specific exclusion for the policy
Thanks for your views, Chandra Shekhar.
Thanks for your comments, Chandra Shekhar.
I truly appreciate your inputs & also your contribution you are making
to people’s lives.
I truly appreciate your inputs & also your contribution you are making
to people’s lives.
extremely nice advice. some things you are mentioning here are small but very very important. thank you sir.
extremely nice advice. some things you are mentioning here are small but very very important. thank you sir.