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You might be wondering that how Life insurance is today’s topic of my blog. Because I want to share all the information with my blog readers which can be helpful to them. So, if it seems boring or irrelevant topic for you then please don’t read further. But if you are interested, then read it till end.

As I worked in an Insurance Company and is a Post Graduate in Banking and Insurance Management. May be my blog will be helpful for you.

Insurance is of two type: Life Insurance and General Insurance. Life insurance covers life and General Insurance covers home insurance,vehicle insurance and mediclaims. One more type is travel insurance. You might have received a call from some life insurance company with some attracting plan. First of all, never take life SE insurance which gives you returns, because sole purpose of life insurance is to cover life, that’s it. Go for Term plan.

If some insurance company call you with attractive returns never buy it. There are many schemes available to get higher returns like mutual funds, share market ( but it’s risky investment, with higher returns). Always, Always, Always read the term and conditions before signing the proposal form of Life insurance. Because ‘Insurance is a subject matter of solicitation’, which essentially means that insurance has to be requested or asked for, not sold. This phrase , which is found in all insurance advertisements in India, was mandated by IRDA, and it means basically that: Insurance is the product that is being sold by this advertisement.

You declare all the information on proposal form and declare that all the information mentioned is true and sign it. The insurance company has the authority to accept or in some cases rejects and some cases put loading on premium to be paid. Loading means you have to pay higher premium for your insurance.

After insurance company accepts the proposal, then you will get policy document delivered at your home. Always, Always, Always read the policy document thoroughly, it will definitely take time but it’s important. Insurance company can take back policy and give back your money if you don’t like the policy after reading all the details.

Why I am emphasising on reading the policy document is because when you will go for claim in insurance company they will ask you many questions with documents. And they are right on their hand because they have to pay lakhs of rupees. It’s our negligence and selfishness of insurance advisor that create problem at the time of claim.

Whenever you take an insurance policy always ask the insurance advisor that, what is claim settlement percentage of that insurance company? Claim settlement percentage means from 100 how many claims were being settled and paid. This percentage will tell you how efficient and true are that insurance companies employees are. If initially the proposal form is filled correctly and insurance advisor gives you right information then, that insurance companies claim settlement rate will be on higher side. Don’t blindly trust on insurance advisors. Read the document carefully.

Hope this blog will help you,next time when you take any life Insurance plan.

Ramneet Kaur