"Spending a whole day looking for insurance is fun," said nobody, EVER!
  • Stuck with a life insurance policy? Here are your options

     4.5 / 5.0   by 16940 users
    Used this product? Write a review >>

    Fees & Charges

    Promised Interest Rate

    Plan Benefits

    Payment Options

    Policy Coverage

    Customer Service

    Responsiveness

    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 alife 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 service"
      0.5 4.5/5 "Excellent!"
      I have been holding my life insurance with Life insurance corporation, they are government institution i have trust in this insurance company i use to pay premium in quarterly bases and i use to pay through off line, there customer service was good they have explain me about my policy coverage clearly.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Nov 14, 2018
    • Max Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using my term insurance with Max life insurance from last 3 month only, i use to pay premium on monthly bases and they have charge premium up to 1500 approximately and i do payment through on line and there overall service is good.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 14, 2018
    • LIC Life Insurance
      "Need improvement on customer service"
      0.5 3.0/5 "Satisfactory"
      I think their customer service should be improved, I have taken jeevan anand it has the total term of 15 years. I need to pay for whole premium. The life cover is available upto certain period. LIC very much provides tax benefit, its good for me.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 14, 2018
    • LIC Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have applied my life insurance with life insurance corporation of India long back, i use to pay premium per month, and they have charged premium up to 2,000 rupees it nominal and i use to get auto debit, there customer service team had explained me about the policy clearly when i had applied this insurance.
      Was this review helpful? 0
      , gandhidham
      Reviewed on Nov 14, 2018
    • LIC Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have applied my life insurance with life insurance corporation of India long back, i use to pay premium per annum , and they have charged premium up to 7,000 rupees it nominal and i use to pay through cash or cheque, there support team had explained me about the policy clearly when i had applied this insurance.
      Was this review helpful? 0
      , vijayawada
      Reviewed on Nov 14, 2018
    • HDFC Life Life Insurance
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this insurance policy a long time back and the process was done online. I had been making the payments on a monthly basis and the premium amount of 1000 has been good. The premium method also has been good and there has not been any hassle faced with them so far.
      Was this review helpful? 0
      , gandhidham
      Reviewed on Nov 14, 2018
    • Bharti Axa Life Life Insurance
      "Fraud Scam"
      0.5 0.5/5 "Unacceptable"
      Entire Bharti Axa team member is fraud. They have surrender my 12 year old policy putting my signature on the surrender form. They have done forgery, done fake signature & withdrawal my money. I have complained on 2nd Nov. Since no proper resolution. my policy number 500-0035682. Request not to purchase policy from this company. Later, I came found, almost all the employee involved through out India in this fraud scam.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Nov 14, 2018
    • LIC Life Insurance
      "Due reminder should be timely"
      0.5 4.0/5 "Great!"
      I do have one or two life insurance policy with LIC. It was taken long back, its a long term policies. I am paying around 5000 quarterly. It is a conventional policy and I will getting a maturity benefits. I am making the payment through online. The premium reminder update is not that good.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 13, 2018
    • HDFC Life Life Insurance
      "Good "
      0.5 5.0/5 "Blown Away!"
      I have taken 2 life insurance policies with HDFC Life, one was taken in the year 2007 and other is year back. I am very much satisfied with the policy coverage and benefits. They have introduced term plan and giving partial disability benefits. I am paying the premium of 3700 rupees monthly through ECS.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 13, 2018
    • LIC Life Insurance
      "Its Trusted"
      0.5 4.0/5 "Great!"
      Major factor I selected the LIC its govt one and its trusted one. The premium I used pay around Rs. 44k for one year for one policy. its a long term. Agent wont respond properly, they interested to sell the policy then they wont respond it. I need to work on the beneficial part.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 13, 2018
    • HDFC Life Life Insurance
      "Good policy to have"
      0.5 5.0/5 "Blown Away!"
      I hold a term insurance with HDFC worth of Rs. 15 lakhs. I opened a term insurance in the year of 2013. I have been paying the premium of Rs. 6174. I have chosen the annual payment mode. Total tenure period of the policy 15 years. This is tax benefitable policy. Since I'm a existing customer of HDFC, i have chosen the same company.
      Was this review helpful? 0
      , dehradun
      Reviewed on Nov 13, 2018
    • LIC Life Insurance
      "Good policy"
      0.5 5.0/5 "Blown Away!"
      I had taken an insurance for my daughter with Life Insurance Corporation of India. Actually its a 38,000 rupees policy and I got the double the amount of the policy. The service are good and nice. Every quarter I pay around 1100 rupees. The premium was paid through an LIC agent. The policy period for money back is 8 years.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 13, 2018
    • LIC Life Insurance
      "Good policy"
      0.5 4.0/5 "Great!"
      I have taken my endowment policy with Life Insurance Corporation of India. My first endowment policy was taken in the year of 1995. I used to pay the premium of Rs. 3000 and i have chosen the monthly payment mode. My friend who is working in LIC has referred me about this Endowment policy. This is a tax benefitable policy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 13, 2018
    • SBI Life Life Insurance
      "Average Policy"
      0.5 2.0/5 "Expected more"
      I used to get a reminder notification messages after 6 months of policy expiry. They used to charge some penalty for my policy. I have purchased the children policy for my children. I withdrawn this policy in 2006. Total tenure period of the policy is 18 years. I get a proper response from the customer care service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 13, 2018
    • SBI Life Life Insurance
      "Satisfied policy. "
      0.5 4.0/5 "Great!"
      I have got my accidental covered life insurance policy with SBI LIFE. I used to pay the premium amount of Rs. 1000 per annum. I used to make the premium through my account. They have given me a claim amount of Rs. 20 lakhs. I have purchased this policy only for me and i have to renew the policy every year. 3 months back, i had renew the policy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 13, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 3.0/5 "Satisfactory"
      Of course, this is a tax savings policy. I did not get any necessity to call their customer care services. The payment options is difficult. Through website i have to pay and i don't have proper interface for making a payment. I just taken the policy only for tax. Through agent i have bought this policy. I am paying the premium amount of Rs. 45000 in a year. I have chosen a half yearly payment mode.
      Was this review helpful? 0
      , chennai
      Reviewed on Nov 13, 2018
    • LIC Life Insurance
      "Recommendable Insurance company"
      0.5 5.0/5 "Blown Away!"
      In front of LIC no other insurance company can survey, the infra structure is wide they are best in the market. In shublabh plan, I should pay the premium for 10 years after 15 years get the money, life cover age is there and they give additional five years cover.
      Was this review helpful? 0
      , chennai
      Reviewed on Nov 12, 2018
    • LIC Life Insurance
      "Good Insurance company"
      0.5 5.0/5 "Blown Away!"
      I am using LIC policy for very long time, its trust worthy. I am not sure about the premium. But its economical for the long term policy which I taken. They have different payment option to make my premium. They have life cover and accidental life.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 12, 2018
    • LIC Life Insurance
      "Trust worthy"
      0.5 5.0/5 "Blown Away!"
      I am paying the premium from child hood, I trust LIC because my father, grand father everyone used it. I am not sure about the matured benefits but tax benefits is good . Payment option is convenient, I can check the statement through LIC website.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Nov 12, 2018
    • LIC Life Insurance
      "Benefits should be improved"
      0.5 5.0/5 "Blown Away!"
      Every people trust on LIC, I have money back policy with them. Per month I am paying Rs. 4500 for total tenure of 25 years. As compared to other policy they are not providing proper benefits but still we trust the insurance company because of the reputation. Still need to work on the benefits.
      Was this review helpful? 0
      , new delhi
      Reviewed on Nov 12, 2018
    Common Loader Icon
    Page 1 of 50 1 2 3 4 5

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.