As a family person, you have to juggle between different responsibilities at any given time. Whether it is about providing for the family or planning a financially secure future for your loved ones, you have to make sure that you fulfil these responsibilities as and when they come.
That said, you also have to ensure that your future goals and planning continue to work as expected, even in the face of an untoward eventuality. It is for the same reason, therefore, that you invest in an online term insurance plan, hoping to secure your family’s dreams and aspirations in your absence.
While this is mostly true, there are still a few aspects of being a term insurance policyholder, which require your attention. So, if you already are a policyholder, here are a few duties and responsibilities that you need to fulfil, to maximise your plan benefits.
Take Care of Documentation
Documentation is a key determinant of your term plan. Whether it is the proposal form or the underwriting, these policy documents should be held in utmost regards.
Moreover, you need to be thorough with the policy details at the time of buying as well as reporting a concern. Reading through the print will help you understand and identify any clauses that could cause friction such as premium payment, policy tenure and claim settlement (both process and Claim Settlement Ratio).
Overall, you must remember that more thorough your documentation is, more comprehensive will be the policy benefits including a quicker claim settlement for your beneficiary. That said, it is also crucial that you make your family members aware of the existence of the policy documents, so that they would know where to find them in case of an emergency.
Clearly Define Nomination
As established under the Insurance Act 1938, the insurance company can only be discharged of their liability once they pay the sum assured to the rightful nominee(s) specified under the term plan.
Given the fact that a claim without a nominee cannot be finalised, all insurers ask policy buyers to state a nominee under the plan precisely. Moreover, at the time of making a claim, the company asks for evidence that the claimant is entitled to receive the Sum Assured under the policy.
While buying a term plan, therefore, you need to make sure that you provide the nominee details, who will receive the benefit after your passing. In case you do not specify any nominee, the benefit is paid to the Class 1 legal heir of the life insured.
Make Premium Payments on Time
Paying the premium amount within the specified period and payment frequency is crucial. In case you fail to do, even after the expiration of the grace period, you could risk lapsing your term plan.
Once the plan lapses, you would have to go through a tedious and financially taxing process to revive the policy. Before buying an online term insurance plan, therefore, it is essential that you calculate your financial requirements and accordingly, choose a suitable sum assured, the payable premium amount and the payment tenure under the plan.
Most reputable insurers such as Future Generali offer step-by-step guidance and online term plan calculators to help determine the premium and the cover amount.
Promptly Convey Any Changes to the Insurer
In case there are any changes in personal information, you need to promptly convey the same to your insurer and get the same updated in the policy document. Therefore, information such as a change of address, nominee details, or contact details must be shared with the insurance company.
Remember, any lapses such as providing incorrect details or not updating them altogether could result in a communication gap between you and your insurer. This, in turn, would result in unnecessary hassles while filing for a claim.
Being Responsible is Key to Maximise Your Term Plan Benefits
Buying an online term insurance plan is an essential step towards securing the financial future of your loved ones. However, simply purchasing the plan would not end your responsibilities towards your family.
As a policyholder, you need to fulfil specific responsibilities as well. For example, you must understand the policy details thoroughly, pay a regular premium and promptly update any changes into the policy document.