Many people face a lot of hurdles in their journey of buying term insurance.
Here’s a guide which can help you if you are thinking of buying a term insurance plan for yourself.
- Coverage: Decide how much cover you want to purchase and for how long. If you are not sure, get help from an insurance advisor or try our term insurance cover calculator – https://algatesinsurance.in/products/term-insurance-calculator/
- Documentation: Make sure all your documents are in place and submitted to the insurance company as required. Your advisor can help you with documentation too.
- Proposal Form: Fill in all the details required in the proposal form. Most companies require you to fill out the form online these days. Insurance works on the principle of “utmost good faith”. So, make sure all the information you provide is true to your knowledge. Do not hide any material fact deliberately.
- Payment: Make payment for the first instalment of your premium. You can do it either online or via cheque. Nowadays, auto-debit facilities are available from many insurers.
- Tele-verification: You are then required to do online or tele-verification. Answer all the questions asked by the insurance company correctly during this verification process. You might be asked to click your photo or shoot a small video at the end of this verification and submit it.
- Medical Examination: The insurance company then schedules your medical examination at a diagnostic centre close to where you reside. Go to the diagnostic centre and take all the tests as per schedule.
- Underwriting Process: Your application then goes to the underwriting stage. Underwriting is a process where an insurance company assesses if it can provide cover to you or not. Underwriters go through all the details you have already provided. They scrutinize your financial and medical condition to find out if you are eligible to get term life cover at normal rates or increased rates.
- Eligibility:
- If the financial eligibility is not met, which is to say that your income is not enough to meet the minimum eligibility criterion, your term life cover is declined by the insurance company.
- If you are financially eligible for the life cover you asked for and you are perfectly healthy, your policy is issued at a normal premium rate.
- Premiums:
- If you have certain health conditions where the insurance company feels that it can provide you cover at a higher rate than normal, it will make a counteroffer to you. You then need to accept the offer and make the payment for the difference in amount. The insurance company will then issue your policy.
- If your health condition is such that the insurance company does not deem you fit to be provided a term life cover, your life cover is declined.
- Accepted/Declined:
- If the insurance company declines your proposal for term life cover, the premium you paid to the insurance company is returned to you in a couple of weeks.
- If the insurance company approves your term insurance policy, now your life is covered.
If you’re still having doubts about the buying process and approval, feel free to book a call with us on our website for quick assistance – www.algatesinsurance.in
