Author: saqibkhan

The term elimination period is used in health insurance policies. It specifies a time between an injury and the receipt of benefit payments. In other words, we can say that the elimination period is the duration between the beginning of an injury or illness and getting the benefit payments from the insurance company. The companies with a longer elimination period charge lower premiums and vice versa.

In insurance policies, a free look period is a time or duration when the insurance policyholders can cancel their newly bought policy without any penalties or surrender charges. Generally, it is a period of 10 to 15 days, but it depends on the insurance company and can vary. During the free look period, the policyholder can decide whether or not to keep the insurance policy. If the policyholders are not satisfied with the benefits or services, they can cancel the contract and receive a full refund.

So, it is possible to get a full refund if the policyholder cancels the insurance policy within the free look period.

Note: Free-look period is available only for life insurance policies.

In India, there are mainly two types of insurance policies: general insurance and life insurance. The general insurance policy generally covers legal liabilities, travel, accident, health, personal property (house or car), machinery breakdown, theft, etc. The general insurance policies are also called non-life insurance policies. These insurance policies generally offer payments according to the loss from a specific financial event.

Yes, paying the premium through an insurance agent is safe. Generally, in India, people choose to pay the premium through their agent, but they must keep something in their mind.

• They should make the payment through cheques to their Insurance Company only.
• They must receive all the receipts for such payments of their premiums.

The concept of adding a beneficiary and an insurance policy was introduced to deal with these types of cases when the insurance policyholder died suddenly or has been missing for multiple years. So, yes, a beneficiary can claim the insurance policy if the insurance policyholder has been missing for multiple years, but a few conditions must be fulfilled.

These conditions are as follows:

• First, the beneficiary must have a court declaration stating that the policyholder has been missing for multiple years (more than seven years).
• Second, the person must have been announced legally dead

Following is the key difference between a participating policy and a non-participating policy:

In a participating policy, the insurance company has to share its generating profit with the policyholders and gives them dividends.

On the other hand, in a non-participating policy, the company doesn’t share any profits with the policyholders.

Generally, every insurance company provides a grace period of 10-15 days to the insurance policyholders if they fail to pay the premium before the due date. However, if the policyholders don’t pay the premium even in the grace period, their policy will lapse. After that duration, if the policyholders want to revive their policy, they would have to pay the due premium and interest charged on the premium since the due date to revive the policy. Different insurance companies have different norms for reviving their lapse policies.

On the other hand, if the policyholder paid premium payments for a substantial duration, i.e., generally more than 2-3 years, and then they stop paying the premium, the insurance company will deduct the premium from the accumulated sum. It continues till there is an available fund. After that, the company terminates the policy. This is common practice with permanent life insurance policies.

If you are an insurance policyholder, then you can follow the steps given below to claim an insurance policy:

• First, you have to fill up the insurance claim form.
• After that, contact the financial advisor from whom you have purchased the insurance policy.
• After completing the above step, you must provide the required documents, such as the payment receipt and other documents asked by the insurance company.
• After verifying the documents, you have to pay the deemed fine, and you will get your insurance claim within certain days. It is generally seven to ten days from your claiming date.

It depends on the situation. If you are an insurance policyholder and it is not long after you have bought the policy, you can replace the policy with another policy if you see better returns. But if you have purchased that policy long ago and already paid many premiums, then it is not advisable as you will lose all the benefits of the previous policy. Also, the premium will go high as you grow older. Another issue you will see in this case is that the two-year contestability period will also begin again.

The term “Loss Payee” specifies a party, an institution, or a person that receives the insurance payment in the case of the loss of a vehicle or property they own. In the event of a loss, the payment is made under the policy concerning the insured, and it would go to the third party rather than to the beneficiary of the same.

It acts as a guard for the lender to protect it against unpaid loans. For example, suppose you have bought a car on loan and have car insurance. So, if your car would be crashed within the loan’s payment duration, the money would go to the bank from where you have taken a car loan rather than your account.