The insurance business in India isn’t just growing, but also becoming more sophisticated in terms of product offerings. To help readers keep ahead of developments in this business, Mint features a Q&A on insurance every Monday.
I decided to invest in a unit-linked life insurance policy, filled in the form recently and gave the premium amount to the company. Now, I want to rethink this. If I decide to withdraw the policy, what will be the implications?
All insurance companies allow customers 15 days from the date of receipt of policy documents to review the terms and conditions of the insurance policy he or she has invested in. This is known as the “freelook period” and this allows the customer a chance to review and to take a more informed decision about whether he wants to go ahead with the policy or not. If you decide to cancel the policy, stating the reasons, within the freelook period, the non-allocated premium plus all charges, plus the fund value less the stamp duty charges, medical costs and proportional risk premium for the period under cover is payable. However, if you have crossed the freelook period, then surrender charges will be levied.
My insurance policy has lapsed as I missed paying some premiums. Can it be revived? How?
A lapsed policy may be revived during the lifetime of the policyholder, but within a stipulated period from the due date of the first unpaid premium and before the date of maturity. Revival of a lapsed policy is considered either on non-medical or medical basis depending on the age of the life assured at the time of revival and the sum to be revived.
Does a life insurance policy provide a cover for terror attacks?
Typically, most life insurance policies will cover death due to terrorist attacks. However, it is advisable to crosscheck this with the company representative.
Readers are welcome to write in with their queries to email@example.com. The questions will be answered by senior executives from leading insurance firms.
This week’s expert is T.R. Ramachandran, managing director and CEO, Aviva India.