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10 things you must know when buying insurance

Here in this article, there are 10 important things that you need to must know before buying the insurance plans.

10 things you must know when buying insurance


Are you ready to know?

1. Is the insurance revocable?

Within ten days from the day following the date of delivery of the insurance policy, the insurance contract may be revoked from the insurance company by checking the insurance policy in writing.

2. Validity of the contract when you forget to pay premiums after the second installment

If the original policy is paid annually or semi-annually, the insurance company will have a grace period within 30 days from the next day after the receipt of the reminder document; for monthly or quarterly payment, there will be no additional reminders, and the grace period will be 30 days from the day following the delivery date of the policy.

If the delivery is not made within the grace period, the contract terminates on the day following the grace period.

After the grace period, if you still need the insurance contract, you can apply to the insurance company for reinstatement.

3. Waiver of Premium Riders

During the payment period of the contract, if a specific insured event occurs (eg cancer), the offeror may be exempted from paying subsequent insurance premiums, and the insurance contract will continue to operate.

Usually, the conditions of the insurance company clearly stipulate that in the event of a disability, critical illness, or disability from the second to the sixth degree, the insurance can provide protection.

4. Permanent invalidation

The policy will become invalid permanently if the policy is not reinstated within two years from the policy expiration date.

5. Can I borrow money under the policy?

If the policy has accumulated policy value reserves, the insurance company can apply for a loan within a certain percentage of the accumulated policy value reserves.

Policies such as whole life insurance policy, interest rate variable annuity (or annuity insurance), and investment policy have a policy value reserve, so you can borrow money, but you cannot take out accident insurance, medical insurance, and property insurance.

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6. Policy Cancellation

Upon termination of the policy, the policyholder may refund the termination fee, which is less than the premium paid. (Not all products have a cancellation fee, please read the policy terms for details)

7. Matters needing attention in claim settlement

To apply for a claim, you can first contact the insurance company and its salesman by telephone, and then prepare the claim application form, hospital diagnosis certificate, and other relevant certificates to settle the claim to the insurance company.

There are four steps to claim settlement:

(1) Notify the insurance company as soon as possible

When you have an insured accident, please contact your policy service personnel immediately, or call the insurance company to obtain claim application documents (or obtain them online).

In the event of an accident for which the insurer shall be liable, the insurer shall be notified within five days of becoming aware of it, unless otherwise stipulated by law or contract.

(2) Consumer preparation documents

Including insurance policy, insurance benefits application form (or claim settlement application form), death certificate (or diagnosis certificate) of the insured, identity certificate of the beneficiary, relevant expense receipts, and other relevant information.

(3) Consumers submit claims applications and insurance companies file review or investigation cases.

(4) Insurance payment

The insurance company pays the beneficiary by check or remittance. The check shall be made payable to the beneficiary (checks are prohibited from endorsement and transfer and are crossed).

For remittance to the account of the beneficiary, a copy of the passbook account with the account name of the beneficiary must be attached.

8. Grievance

Life insurance companies serve policyholders.

Centers addition to the policyholder service units at branches in various regions, the head office has policyholder service departments (commonly referred to as policyholder service centers) that are directly connected to policyholders as the head office.

9. No money to pay premiums

There are four ways to solve it, but it depends on whether the insured content can exercise the following rights.

(1) Apply for automatic premium payment

(2) Reduce the policy sum assured

(3) Reduced paid-up insurance

When the policy has been paid for at least one year and a significant reserve of the policy value has accumulated, even if you are temporarily unable to pay the premium, you can apply to switch to insurance at a reduced premium.

The original insurance period and conditions remain unchanged, and the accumulated policy value reserve is applied for a change to the insurance amount that can be guaranteed by the insurance.

In this way, you do not need to pay premiums, but you still enjoy protection.

(4) Extended term insurance

When the policy has accumulated a policy value reserve and the premium has been paid for one year.

The policyholder can also choose to apply to the insurance company for the policy value reserve at that time, subject to the original insurance period so that the contract can continue to be valid until a certain time. day term insurance.

10. Exclusions

Exclusions refer to items for which insurance companies are not responsible for payment. Every insured product has exclusions. Consumers should fully understand them to avoid disputes arising from failure to receive claims after being insured. 

The number and content of its items are clearly listed in the terms of the insurance policy. Before applying for insurance, you can ask the business personnel to provide information. In general, exclusions from insurance agreements include:

(1) The insured intentionally commits suicide or becomes disabled.

However, if the contract is signed or reinstated two years after the date of intentional suicide with intent to cause death, the company is still responsible for paying death insurance or funeral expense insurance.

(2) The insured dies due to criminal execution resisting arrest or escaping from prison.

(3) The proposer intentionally causes the death of the insured.


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