- Date : 03/12/2019
- Read: 7 mins
Insurance is a contract between the insured and the insurance company. Often, policyholders fail to make the most of their insurance plans, as they are unaware about the fine print in the policy document.
Tips to ensure you make the most of your life insurance policy. While the insurance company has an obligation to settle your claim (if your claim request meets all the company requirements), you too have some rights and duties as an insured.
Here are some rights you own and duties you need to fulfill as a policyholder.
Rights of a Policyholder
An insurance policy empowers a person with the following rights:
- If the terms or conditions of the policy are not in line with what was promised/ perceived at the time of sale,you can cancel or return it within a pre-determined time (generally 15 days) from the date of receipt. On cancellation, you will receive a refund of the premium paid after deduction of costs incurred by the insurer like stamp duty, medicals, etc.
- The nominee/assignee of an insurance policy has the right to claim the amount of death benefit of the insured.
- Based on the type of policy and the insurance company, you can modify/alter policy terms like mode of payment, tenure, and sum assured, etc.
- In case of ULIPs, additional rights are also offered to the insurer
- Make partial withdrawal of funds asper the terms of the policy
- Switch funds based on varyingobjectives and market dynamics
- Surrender the policy after the completion of the lock-in period
Duties of a Policyholder
Let us now understand the duties of a person while buying life insurance. The duties can be sub-divided into three categories as explained below: