Life insurance policy can help in making sure that your family get adequate financial support after your demise. It is a way of securing the future of your loved ones. There are different types of life insurance policy provided by different companies. Therefore, in order to make a feasible decision, you must be aware of what goes on when you buy a life insurance policy.
- The Proposal
The first step of taking a life insurance policy is getting into a contract. You will be provided with proposal forms that will include a series of questions. In the form, you will need to provide information including –
- Name, address and occupation
- Date of birth
- Proposed insurance plan or scheme
- Purpose of taking the insurance
- Details of the nominee
- Details of any other insurance
- Personal Statement
After you have filled out the proposal form, you will be issued with a personal statement. In this form, you will have to submit your medical history along with the family’s medical history. Acceptance of the proposal will be based on the information that you provide in this form.
Moreover, if you provide false information, the company holds the right to revoke the initial contract and forfeit the premium amount.
- Medical Examination
Once you have submitted the personal statement, you will be required to take a medical examination. This medical examination is taken by certified doctors who work in association with the insurance company. You will not have to pay any charges for taking this examination.
- Age Proof
Age is an important factor in calculating the premium of the policy; therefore, you will have to submit a proof of age. The age you have mentioned in the initial form must be the same as in your other documents. To prove the same, you will have to submit documents that could act as your age proof.
- Scrutinizing the Report
Once all the forms and documents are submitted, the officers will examine them. This is the reviewing stage, which will determine whether or not your proposal has been accepted. If the information is satisfactory, the company will inform you with regards to the acceptance. And if not, you will be intimated that your proposal has been rejected along with the reason behind it.
- Premium Payment
When you pay the firm premium, you will be provided with a valid receipt. After it, you will have to pay a premium monthly or annual basis.
There you have it, above are steps associated with buying a life insurance policy. You will also be provided with a written agreement. In this document, your information and the details of the insurance policy will be mentioned.
Life insurance policies come with a lot of terms and conditions, ensure that you read the policy documents clearly before signing the agreement. Additionally, not hiding any vital information or tampering with it might revoke your insurance policy. Therefore be clear and honest about the details you mention in the forms and statements.