When You Should Hold On To The Policy?

Insurance policies are beneficial when held for long term specially ULIPs. As the policy progresses, the benefits keep on increasing. So if you have already passed the first few years then it may be wise to hold on. 

If you think to exit from your insurance policy and want to reinvest the proceeds elsewhere then check that the new investment option should earn better returns and also should have the potential to recover the losses incurred in exiting the insurance policy. 

What documents are generally required to be submitted in case of death of life assured while the policy is in force?

Generally, basic documents required are death certificate, claim form and policy bond. Among other documents are medical attendant’s certificate, hospital certificate, employer’s certificate, police investigation report, post-mortem report etc. These may be asked depending upon case to case. 

The claim requirements are usually outlined in the policy bond and the insurer’s website.

1. What is meant by settlement options?

A settlement is the way in which the life insurance policy proceeds are paid out to you, the policyholder. The terms and conditions are given in advance in the policy document at the beginning of the contract.  

For example, a policy may offer settlement options like paying a lump-sum or regular monthly flow of income for a certain number of years after completion of maturity period.

2. What are the requirements to be submitted in case of a Maturity Claim?

Usually the policyholder receives the intimation from the insurance company along with a discharge voucher at least 2 months in advance of the maturity date of policy. This intimation notice informs the claim amount payable. 

Also, the intimation mentions that the policyholder has to submit the original policy bond and discharge voucher duly filled and signed by him along with signature of witnesses. You also need to submit your bank account details like a cancelled cheque for getting the claim money.