24/06/2015
Explanation Of The Fine Print :-
After purchasing your life insurance policy and having it approved you finally get the document in your hand.
Take some time to read it in order to get a true understanding of the document you hold in your hand.
I beg of you not to put your life insurance policy away for safe keeping until you have examined every last phrase in the contract itself...
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Let us now examine the mechanics of a life insurance policy. This is an example of what is usually included in your policy. The actual explanations will differ somewhat from company to company.
Section 1
In the first section of the policy you are given you a brief description of the benefits included therein.
How much the life insurance policy is for; that is, how much is payable on death.
The type of policy and name of the plan purchased. You know, whether it is a whole life policy, term policy, variable life policy etc.
The name of the insured. That is the person whose life is insured.
Any additional benefits or riders, such as waiver of premium in case of disability...or the accidental death benefit rider sometimes referred to as "double indemnity" by which twice the face amount of the policy would be paid if the insured died in an accident of any type.
The age of the insured. A life insurance company takes into consideration age, health and occupation when underwriting a life insurance policy. Usually the older a person is the more a life insurance policy costs.
The policy number. This is important. You or your beneficiaries will refer to this number when dealing with the life insurance company.
Also listed here is whether the policy is issued preferred, standard or rated...that is when you are charged an extra premium because of your health, occupation or avocation.
The number of years the policy is issued for. e.g. 10 years, 20 years, or for life.
Here they show the annual premium. Although all premium calculations are initially made on an annual basis, the insured may pay the premium semi annually, quarterly or monthly.
The number of years the policy is payable. A life insurance policy may be issued for life but the premium payer may only have to pay premiums for say 10 years. This is known as a limited pay life policy.
The date of issue. This is the date the life insurance policy goes into effect.
The incontestable period and contestable period. Let us assume you applied for a life insurance policy and lied on the application that you never had cancer. However, through a report from the Medical Information Bureau the insurance company discovers that you were diagnosed with melanoma 2 months ago, they can withdraw the policy, and refund your money. If, however, they discovered this after the contestable period had expired, they could not take the policy away from you. Contestable period is usually 1 year.
Su***de clause. If a person plans to buy a policy and then commit su***de, they should forget about it. Although insurance companies pay benefits if a person commits su***de, they give you a long time to think about it. Written in the su***de clause is a waiting period of one or two years. In other words don't go and buy a policy with the intent of committing su***de. Your family will receive nothing.
Definition of dates. Here it is explained that the su***de period and contestable period begin at the date the policy was issued. Policy dates are stated in this policy itself.
Misstatement of age. If the insured miss-states his or her age on the application for the policy the amount of insurance shall be whatever insurance the premium paid would purchase had the correct age been given. for Advise- www.policyseller.in
