Life Insurance Corporation (LIC) is the most preferred financial institution to avail insurance.
There are are a wide range of LIC policies available in the market. Before opting for any policy it is better to know about the product and the company.
Here are 10 must know things about LIC insurance policies:
1) Your Policy Bond Safety
The policy bond is the document that is given to you after LIC accepts your proposal for insurance.
The risk coverage commences after acceptance of your proposal and the conditions and privileges of your policy are mentioned in the policy bond.
It will be required at the time of settlement of claims on the policy. You will also require it if you are availing a loan or want to assign the policy.
2) Your Policy Number
The nine digit policy number is a unique identification number that distinguishes your policies from other policies and will remain unchanged throughout the lifetime of the policy. While making any correspondences to LIC, remember to quote the policy number, as it helps to locate your records for reference.
3) Policy Conditions
Each policy is taken for different types of needs and hence the conditions will vary according to the plan and term of the policy.
4) Alterations In Policy
A policyholder can make changes in a number of cases where he finds the terms not suitable to him. However, no alteration is permitted within one year of the commencement of the policy with some exceptions.
5) If Your Policy Is Lost
A duplicate policy confers on its owner the same rights and privileges as the original policy. A duplicate policy will be issued after meeting certain requirements, i.e., Indemnity Bond and payment of charges for preparing duplicate policy and stamp fee.
6) Update Contact Address
Inform if there is a change in communication address, otherwise any communication sent, like premium notices, discharge vouchers for maturity and survival benefits etc., will get delayed in reaching you.
Ensure that the nominees name is correctly incorporated in the policy bond. The policyholder can change the nomination in policy any time during the lifetime of the policy.
In case you are raising a loan against your policy from LIC or any other financial institution, your policy would have to be assigned to LIC or the financial institution. The policy would be reassigned to you on the repayment of the loan.
9) Revival Of Lapsed Policies
Incase of lapsed policy due to non-payment of premiums within the due date, the terms and conditions of the policy contract are rendered void, till you revive your policy.
A lapsed policy has to be revived by payment of the accumulated premiums with interest as well as giving the health requirements as required .
10) Availing Loans On Policies
Many of the LIC policies are of endowment type and policyholder will be eligible to raise a loan against the policy. One can repay the loan with interest or continue paying the interest and allow the loan to be deducted at the time of the claim payments.