• Stuck with a life insurance policy? Here are your options

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    Purchasing a life insurance policy is not a small decision. In fact, it is one of the most important decisions you can take during your lifetime, and also one which has the power to have a significant impact on the lives of your loved ones. Life insurance is essentially a long-term contract between an insurer and the insured which involves the insurer providing life insurance protection to the insured for a specific period. The cost of getting life insurance cover is known as premium which is to be paid by the insured based on a pre-decided mode or frequency.

    Major Reasons Why People Buy The Wrong Insurance Policy

    When it comes to purchasing a life insurance policy, plenty of information already exists on the topic, which most insurance buyers do take into account before buying a policy. However, there are also many others who end up buying a policy that is unfit for them and their needs. The best example of this is the tax season when people make a beeline for buying insurance policies to save on tax, without giving much thought to their needs. Due to this, they often end up buying a policy which they may be of little, to no use to them.

    Another major reason why people end up buying the wrong insurance policy is due to mis-selling by insurance agents. Often people take help from an insurance agent who assists them in selecting the right policy. These agents are usually associated with a particular insurer, and end up pushing policies which would get them the most commission. In doing this, they tend to sell the wrong type of policy to a buyer, who is least likely to get any benefit out of the policy.

    In addition to this, people also tend to buy life insurance based on a friend’s or family member’s recommendation, someone who may have benefited from the policy. However, one must always remember, that because no two individuals are the same, their needs and requirements will not be the same either. And this is the reason why, the same policy might be highly suited for one individual, while for another, it may be completely useless.

    Now, the topic in question is, if you have purchased the wrong life insurance, what options do you have to get out of the situation? There are actually, not one, but five options that you can choose from, depending on the type of insurance policy that you have taken. Read on to find out.

    Amp up the coverage of your plan

    If your insurance plan is unfit because it provides insufficient coverage, you always have the option to increase plan coverage. This can be done easily, by purchasing a second plan which will help make up for the gap in coverage and provide you with the amount of sum assured that is adequate for your needs. When buying additional life insurance coverage, it is important to keep in mind that different types life insurance plans charge different premiums. Considering this, it is often most recommended that if you are looking to get additional coverage on an existing life insurance policy, it is ideal to go for a term insurance plan, which offers a high amount of cover at an affordable cost.

    Another option which you can consider to increase your plan’s coverage it to take add-on covers. Add-on covers or riders are designed to provide added cover for risks which may not be covered under the policy such as critical illness, accidental death, etc.

    Halt your premium payments

    If you have a term insurance plan, you would be well aware that these plans do not offer any survival benefit. They also don’t do not accumulate cash value. Therefore, if you have a term insurance plan which is not suited to your needs, you have 2 options. First, you can discontinue premium payment on the plan which will cause your plan to lapse automatically after a certain period. The other option is applicable only if your plan is still in its free-look period. In this case, you can place a request to return the plan, following which, you will receive a refund of the premiums which you have already paid towards the plan, after the deduction of certain charges. If your plan is not in the free-look period any more, you can also discontinue the plan by not paying the renewal premium.

    Surrender the policy

    Besides a term plan, most other types of life insurance plan offer policyholders the option to surrender their policy. Policy surrendering basically means that if the policyholder terminates their policy before it reaches maturity, the insurer will pay the former the cash value which the policy has acquired during the period it was active. This cash value is known as policy surrender value. So, for instance if you have an endowment policy or a ULIP (unit-linked insurance plan), both of which have surrender value, then you can exit the policy by surrendering it to the insurer.

    Once you have surrendered the policy, the insurance cover shall cease and the insurer will provide you the surrender value which your policy has accumulated over the years until surrender. Also remember that insurers have certain terms and conditions for policy surrender. A policy will typically have to have been active for a certain number of years, with all due premiums paid in full for the term, before it can be surrendered.

    Make the most of the policy’s free look period

    If you have purchased a policy which you soon realize (after having bought it) that it is not suited to fulfil your needs, you can return it and get your money back. Keeping the interests of life insurance policyholders in mind, IRDAI (Insurance Regulatory and Development Authority of India) has made it mandatory for insurers to provide a 15 day free look period on all policies. The concept of free look period is applicable to life insurance and health insurance policies. The free look period begins from the day that the policyholder receives the policy document. To cancel or return a policy during the free look period, the policyholder must put in the request to return the policy in writing, to the insurer. Following the receipt of the request, the insurer will then proceed to refund you the value of premium which you have paid towards the policy after making certain deductions such as proportionate risk premium for the cover period, stamp duty charges, medical examination charges, etc.

    Convert to a paid-up policy

    If you have an endowment insurance policy or a ULIP, and wish to exit the plan, you can do so by converting your policy into a paid-up policy. Utilizing this option will depend on whether or not your insurer has given you this option on your policy. What is a paid-up policy? A policy acquired the paid-up status if the premiums have been paid for the minimum number of years and discontinued thereafter. In this case, the policy will continue till it reaches maturity, but the benefits payable under the policy will be reduced in proportion to the premiums that have been paid. If you have an endowment plan, you must make annual premium payments for a minimum number of 3 years (5 years for ULIPs) to be eligible to convert your policy into a paid-up one.

    Stuck with a life insurance policy? Here are your options Reviews

  • Page 1 of 50 1 2 3 4 5
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 6 years and it is a money back policy. I get money back after every 4 years and the maturity period is after 15 years. I make my premium payments once in a year through net banking. I am satisfied with the coverage value of this insurance.
      Was this review helpful? 0
      , chennai
      Reviewed on Apr 26, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a LIC policy from last 6 years and it is a long term policy. I am satisfied with the coverage and returns of this insurance policy. I pay my premium every month through ECS and i am convenient with the payment options. The maturity period of this insurance is 20 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 26, 2018
    • Max Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 1 year and it is a long term policy. The tenure of this insurance policy is 40 years. I pay my premium once in a year by credit card and sometimes through net banking, I am happy with the coverage value of this insurance policy.
      Was this review helpful? 0
      , mumbai
      Reviewed on Apr 26, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have taken a short term life insurance policy with LIC 2 years back, i am happy with the returns of this insurance policy as i get Rs 32 lakhs after the maturity period. I pay my premium once in 6 months through net banking. The maturity period of this insurance is after 10 years.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 25, 2018
    • LIC Life Insurance
      "Not satisfied"
      0.5 2.0/5 "Expected more"
      I am not happy with the life insurance policy with LIC, i am using this policy from last 15 years and it is a long term policy. I pay my premium once in 6 months through net banking. The premium amount is more and the returns are very less in this insurance policy.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 25, 2018
    • Max Life Insurance
      "Best policy"
      0.5 5.0/5 "Blown Away!"
      I have a life insurance policy with MAX Life from last 15 years, i make my premium payments once in 6 months through net banking and i am convenient with the payment options. The coverage value of this insurance policy is good. The maturity period of this insurance is after 20 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 25, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 5.0/5 "Blown Away!"
      I hold a life insurance policy with LIC from last 5 years and it is a long term policy. The tenure of this insurance policy is for 20 years. I pay my premium once in 3 months through net banking. I am happy with the coverage and returns of this insurance policy.
      Was this review helpful? 0
      , chennai
      Reviewed on Apr 25, 2018
    • LIC Life Insurance
      "Good policy to use"
      0.5 4.0/5 "Great!"
      The service is good with the LIC. I have the LIC jeevan anand policy around 3 years ago. I use to pay the premium through online which is the easiest mode. I pay the premium of Rs,.5000 in every 3 months once. The plan benefits and the coverage is good with this policy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 25, 2018
    • LIC Life Insurance
      "Good Service"
      0.5 4.0/5 "Great!"
      I've been using the LIC jeevan Anand Policy for a while and I'm happy about their overall services. I make payments online. The premium gets debited from my account which is easy and convenient. Their customer support is also very helpful. Overall it is a recommendable policy to have
      Was this review helpful? 0
      , chennai
      Reviewed on Apr 25, 2018
    • HDFC Life Life Insurance
      "Good"
      0.5 4.0/5 "Great!"
      Hdfc Life Insurance service is good. I have taken one policy with Hdfc Life. The customer support is good with Hdfc Life. Tenure period is for 10 years. The new schemes and offers are good Hdfc Life Insurance service. It was an good experience with Hdfc Life Insurance service.
      Was this review helpful? 0
      , thane
      Reviewed on Apr 25, 2018
    • Bajaj Allianz Life Life Insurance
      "Good"
      0.5 4.0/5 "Great!"
      I have four policy's with Bajaj Allianz Life Insurance service. Tenure period is good with Bajaj Allianz Life Insurance service. The payments options are through online. It was an good experience with Bajaj Allianz Life Insurance service.
      Was this review helpful? 0
      , thane
      Reviewed on Apr 25, 2018
    • LIC Life Insurance
      "Good"
      0.5 4.0/5 "Great!"
      Life Insurance Corporation Of India service is good. They use to update with new schemes and offers. I have taken six policy's with Lic. The tenure period is for 20 years. I use to pay my premium through my credit card. It was an good experience with Lic.
      Was this review helpful? 0
      , thane
      Reviewed on Apr 25, 2018
    • HDFC Life Life Insurance
      "Average policy to use"
      0.5 3.0/5 "Satisfactory"
      The HDFC life has offered me the Jeevan suraksha life insurance policy. The customer support service is not up to the mark with the HDFC life . They need to given proper response to the customers. The premium has been paid through online, before taking up the Hdfc life insurance policy , we need to check the benefits and the coverage before we go for the policy, the transparency is not seen int the process.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 25, 2018
    • HDFC Life Life Insurance
      "Average policy to use"
      0.5 3.0/5 "Satisfactory"
      Got the HDFC life insurance policy around 5 years ago. This policy has the tenure of 25years. The endowment plan has better plan benefits and the policy coverage . The communication part is not up to the mark with the HDFC life . The promises has not fulfilled with the the hdfc life.. The premium has been paid through online
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 25, 2018
    • LIC Life Insurance
      "Better child plan "
      0.5 4.0/5 "Great!"
      The customer support service is good with the LIC and I hold a child plan life insurance policy, which is good to use and I have it for more than 5 years. I pay the premium amount of Rs,15000 every year once. I pay the premium though online mode which is easy to do.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 25, 2018
    • LIC Life Insurance
      "Good money back policy"
      0.5 4.0/5 "Great!"
      The money back policy has the tenure of 20years. The customer support service and the response is good with the LIC and I use the LIC Money back policy for past 8 years.The premium has been paid through online. The claim process is good with the LIC policies ,
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 25, 2018
    • LIC Life Insurance
      "Better jeevan anand"
      0.5 4.0/5 "Great!"
      The claim process is good with the LIC life insurance policy ,The premium has been paid through online mode. I have got the LIC life insurance 5 years ago. This policy has the tenure of 20years. The premium amount of Rs,15,000 every year once,
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 25, 2018
    • LIC Life Insurance
      "Life insurance with LIC "
      0.5 4.0/5 "Great!"
      I have taken life insurance with LIFE INSURANCE CORPORATION OF INDIA and the premium amount is 39750 yearly and i have to make the payment for 20 years and after 20 years i will get the sum assured + the bonus. The customer service with them is fine.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 25, 2018
    • Exide Life Insurance
      "Best policy"
      0.5 5.0/5 "Blown Away!"
      I have a EXIDE life insurance from last 10 years, the only benefit i found in this insurance policy is, they give good bonus when compared to other insurance companies. I pay my premium once in a year through net banking. I am satisfied with the returns of this insurance policy.
      Was this review helpful? 0
      , kolkata
      Reviewed on Apr 25, 2018
    • LIC Life Insurance
      "Best policy"
      0.5 5.0/5 "Blown Away!"
      I have a life insurance policy with LIC from last 10 years and it is a long term policy. I am happy with the coverage and returns of this insurance policy. I pay my premium once in a year through net banking and i am convenient with the payment options. The maturity period for this policy is after 16 years.
      Was this review helpful? 0
      , kolkata
      Reviewed on Apr 25, 2018
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