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Choosing a life insurance product is an important choice in life, including understanding some of the important things listed in the life insurance policy that you have .
Insurance policies are important things that users should not choose carelessly. This is because it will be used continuously and the benefits will be taken at a later date.
When choosing an insurance policy, usually many people don’t read the contents of the provisions in it, for complicated reasons.
Even though this is quite important as an aspect of consideration before you choose a life insurance policy. In order not to make the wrong choice, here are some important aspects that you need to consider when you want to have an insurance policy.
1. Understand the Life Insurance Policy Well
Actually, every life insurance policy does not just offer services and products. However, the insurance policy also provides the right time for you to understand the contents of the policy agreement that you purchased.
Each buyer will generally be given 2 weeks to read and understand the contents and details of the policy. If the policy buyer has objections to various aspects that are there, you can cancel the purchase of the policy.
Therefore, you should not be careless when you want to buy a life insurance policy. Because this will harm you in the future, especially if you don’t get the maximum benefit from purchasing the policy.
2. Know Data About Policyholders and Insureds
When filling in various data in the policy form, make sure you fill it in accordance with the existing provisions. Don’t forget to research it first to minimize errors.
It is expected that in the future management of the life insurance policy there will be minimal changes so that it will not be difficult to make a claim.
The policy is an important document, it is also included in legal and official documents. Therefore, errors in filling in will make it difficult for you in the future when you want to make a claim or manage it.
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Moreover, the policy is also related to various aspects related to insurance, in the sense that the data is used in many aspects.
Checking the contents and personal data in the policy column, especially regarding the insured’s data, is an obligation that must be carried out by the buyer of life insurance products.
3. Life insurance policy benefits
Make sure that all the benefits that you will get when purchasing this insurance policy , are in accordance with the needs that you need. Remember not to be harmed by this purchase, because the price of the policy is unaffordable and tends to continue to rise.
At least there are several aspects that you need to pay attention to in this insurance benefits section. These benefits include the following:
- Stay or hospitalization facilities at the hospital, including details of the service fees that will be obtained.
- Additional benefits in life insurance policy services.
- There is a period of coverage for you from the insurance company.
- The procedure for submitting claims is easy and does not burden the policy buyer.
- The heirs get a certain amount of sum insured, if the insured experiences a disaster or accident.
4. Provisions Related to Premiums
Know exactly how the premium provisions contained in the policy. Because many insurance companies apply additional rules to their policies.
The following are some important aspects that you also need to pay attention to, especially regarding policy premiums, namely:
- Recovery related to a policy that has been released, for example when the insured is in arrears in payments which makes the policy unusable.
- Know the amount of premium that must be paid, how the technical terms and terms of payment are in accordance with the rules, as well as additional provisions related to this matter.
- Are there additional provisions related to premiums paid late. So you can anticipate if there is a payment arrears.
5. Know the Exceptions
There is a special chapter that will explain the provisions for rejecting claims. The rejection was made by the insurer who became the holder of the life insurance policy .
For those who don’t know, here are some important aspects related to the rejection of a claim for this insurance policy, including:
- Died as a result of suicide, the suicide was carried out two years after the insured’s policy was issued by the company.
- The insured died due to an act that violated the law, or an act of crime.
- The insured was sentenced and died in state court.
- In Indonesia, there was a global disaster emergency, or there was a war crisis.
- Being a flight crew, unless the insured uses an additional premium in the life insurance policy.
- Committing suicide, or self-injury whether the insured is conscious or not.
- Undertaking military or police duties while the policy is in effect, unless they add it in as an additional premise when purchasing the insurance policy.
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6. Provisions Related to Cost Cutting
A number of fees are displayed when you make a purchase and life insurance services that have been selected. This is an important thing that needs to be understood from the start, because it reduces the benefits of the policy you already have.
You should be aware of the costs associated with maintenance and basic coverage. As well as knowing how the cost of managing funds per year, along with monthly administration.
You can also ask the company that manages the policy about switching between investment fund allocation changes.
When choosing insurance, you must be sure and fully understand the contents and conditions contained therein. That way, you as the insured can get the maximum benefit, and can be used to meet your needs.
7. Knowing the meaning and significance of each subject contained in the policy
There are three subjects in the policy agreement that you have purchased, namely the policy owner, the insured, and the transfer of inheritance.
You must know the differences between these three subjects so that there are no misunderstandings later. The following is the meaning of each subject in the policy, namely:
- The policyholder is the person who buys the life insurance policy, he will also pay the premium automatically
- The insured is the person whose risk is borne by the policy company.
- Heirs are people who receive insurance benefits, this happens when the insured dies. He will also get a share if the insured does not benefit from the policy.
The person holding the policy may also be the insured party because this is usually the case.
However, it is often found that the policyholder and the insured are different people. However, most of the cases were found they were still one in the nuclear family.
8. Exceptions to Benefits that Can Be Taken
There are some risks that cannot be borne by the policy company because they are an exception. If indeed the risk comes from the aspect of exclusion that has been set by the company, then the benefit claim cannot be taken by the recipient.
Also Read: Manulife Life Insurance: Types, Premiums, Benefits & How to Claim
Generally there are three exceptions that you will find in every life insurance policy, including:
- Deaths caused by suicide, or because of court death sentences. Which is often found in life insurance policies.
- Does not cover costs for critical illness, where symptoms have arisen when the coverage period has just started.
- Do not cover accidents due to the influence of alcohol, as well as prohibited drugs.
9. Know the Wait Time
There is a waiting period that you can use before you get insurance benefits. When you submit a claim, the insurance payment will go through a waiting period, usually found in health insurance.
Although some life policies also have the same waiting period.
However, the waiting period varies, depending on the type of company and the type of policy you choose. The waiting period also varies, some are only one month or 30 days, but some are up to one to 2 years for certain cases.
10. Know the Coverage Period
This is the term for the time you will get when you are protected with this life insurance. If you have entered the coverage period, then the life insurance policy that you have is active and can be used.
When purchasing a policy, you should pay attention to when you get this coverage, whether it is valid for life or not. Because some policies do not provide a limit on the coverage period of up to a lifetime.
To get a more detailed answer regarding the coverage period, you can directly read the data and the policy agreement that you purchased. If you don’t understand, don’t hesitate to ask the life insurance policy agent who offers you the agreement.
Those are some important aspects that you should know about life insurance policies . To get the maximum benefit from this policy agreement, it’s a good idea to choose the right product according to your needs.
Therefore, it is not only you who benefit, but also various related parties whose names are listed in this policy.
