All about Your Rights and Duties While Buying Life Insurance Policy
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

All about Your Rights and Duties While Buying Life Insurance Policy

All about Your Rights and Duties While Buying Life Insurance Policy
  • 16th Jan 2020 |
  • 1,759

When you buy life insurance, you are investing money to secure yourself from any uncertain conditions in the future. To safeguard your interests, there are certain rights and duties that are granted to you while buying an insurance policy. These rights and responsibilities of the insurer and insured have been prescribed by the IRDA (Insurance Regulatory and Development Authority). Let’s look at the important terms and conditions you should be aware of:

Rights of Insurance Policyholder

1.If you disagree with any of the terms and conditions mentioned in the life insurance policy, you can cancel the plan within 15 days of getting the policy documents

2.You can return the policy stating the reason to the insurer

3.The premiums paid shall be refunded to you by the insurer

Rights of ULIP Policyholder

If you hold a Unit-Linked Insurance Plan (ULIP), the following rights also apply to you:

1.If you are canceling the ULIP policy, you can buy the units again on the cancellation date

2.You have the right to make a partial withdrawal from your policy

3.You have the right to switch the funds you have invested in ULIP

4.The policy can be surrendered after the lock-in period of the policy ends

5.The beneficiary has a right to the death claim amount of the Unit-Linked Insurance Plan

6.In ULIP, you can request for alterations for the following heads:

  • Premium payment mode
  • Policy term
  • Increase in sum assured
  • Premium redirection
Buy Life Insurance Now

Duties of Insurance Policyholder

Here are some of the duties assigned to you as a policyholder for the below-given situations:

Duties of Policyholder While Buying the Policy

1.You have to fill the form truthfully without hiding anything as it an insurance contract

2.You should not leave any columns empty in the form

3.Any blank forms should not be signed at any condition

4.You will be held responsible for all the details mentioned in the form as it is signed by you

5.You have to disclose all the material information related to you as the risk cover is meant to secure you

6.The terms of the policy can be selected as per your needs

7.The amount of premium that has to be paid towards the policy can be chosen by you

8.You can select the frequency of premium payment

9.You should opt for an electronic payment mode for safety, to maintain records,and for convenience

10.The nominee should be chosen if you have bought a policy and their details should be entered correctly

Duties of Policyholder after Buying the Policy

1.You should hear from your insurer in 15 days after submitting the policy

2.If any other documents are asked for by the insurer, you should comply with their request

3.The policy bond should be made available to you in a reasonable amount of time after the proposal has been accepted

4.You should go through the policy bond once the proposal has been accepted and check if the drafted policy is what you actually wanted

5.Check the term and conditions mentioned in the policy to cross-check if they are similar to what was told to you initially

Maintaining the Policy

1.You should pay the premiums of your policy on the given due date

2.You should inform the insurer if there are any changes in your address

3.In case you are paying via a cheque, you should make arrangements to give it to the insurer instead of waiting for an agent to pick it up

Nomination

While changing the nominee for your policy, you follow the below-given instructions:

1.You can file a notice for a change of nominee

2.You can send the nominee to the insurance company to register their name

3.If the nominee is a minor, you can nominate an appointee to take care of the claim amount till the actual nominee is still a minor

4.The appointee has to provide their signature to show consent to be the appointee

Duties of Policyholder If the Policy Lapses

If you do not pay your premiums regularly, then your policy can lapse. In such a case, you should contact the insurance company to revive the insurance policy.

Duties of Policyholder If the Policy Gets Lost

1.You should contact the insurance company immediately if you have lose the policy documents

2.A duplicate policy bond should be requested and the formalities should be complied with by you

3.The duplicate policy bond given to you confers the same rights as the original policy bond

Duties of Policyholder at the Time of Claim Settlement

1.You should cooperate with all the requirements demanded by the insurer or a third party who is handling the claim process

Now, you know all your rights and duties that have to be followed if you have a life insurance policy. The life insurance rights have been given by the official government body, hence, all the insurance companies have to comply with the rules and regulations.

Buy Term Plan Online

Kotak e-Term Plan

Download Brochure

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

What is a Single Premium Term Plan and its Tax Benefit?

In India, should NRIs purchase life insurance?

Why Buying a Term Insurance is Important for all Parents

Why You Should Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

Life Insurance for Overweight Applicants

Process of Filing A Claim For Life Insurance

How Much Life Insurance Cover Do I Need?

Are Deaths Due To Coronavirus Covered by Kotak E-Term Plan?

Why Term Insurance for Women is Important?

What Should One Expect During the Medical Evaluation for Life Insurance?

Types of Insurance You Must Invest in for Secure Future

How Often You Must Review Your Life Insurance Policy?

Life Insurance Plans for Women

“Life” Insurance or “Death” Insurance?

Difference Between Money Back and Endowment Policy

All About Life Insurance and How It Works?

Term Insurance Claim Process

First Job? Here’s Some Tips on How to Manage Finances

5 Things to Keep in Mind While Buying Life Insurance Policy

ULIPs: Suitable for all

Think About Life Insurance Sooner than Later

Does Life Insurance Cover Terminal Illness?

5 Reasons Why You Need Life Insurance in College

Do Life Insurance Premiums Increase Every Year?

Life Insurance Vs. Mutual Funds Investment

What are robo-advisors in insurance?

Best Insurance Plans in India

Is it Worth Buying Disability Rider on Term Insurance?

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

What Is a Whole Life Insurance Plan?

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Important Features of a Term Insurance Plan

A Step-by-Step Guide: How To Make An Investment Plan?

How to Revive the Lapsed Life Insurance Policy?

Why You Should Never Cancel Life Insurance Policy

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

Difference Between Term Insurance and Endowment Plan

What is Sum Assured in Endowment Policy?

What Is Financial Planning?

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

What Is Investment Insurance?

10 Most Frequently Asked Questions - FAQs on Term Insurance

Most Common Life Insurance Riders to Enhance Your Existing Policy

A Term Insurance Guide for Disabled People

Always keep your Nominee informed

Who Is A Nominee In A Life Insurance Plan?

NRI Premium Payment Options

Why One Must Buy Term Insurance before 25 Years

Digital Life Certificate for Pensioners Seeking Pension

Does Life Insurance Pay for Suicidal Death?

5 Ways to ensure faster settlement of claims

Why Online Term Insurance Plans Cheap?

Is It Advisable To Have Multiple Life Insurance Policies?

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

Staying Insured While Investing

Life Insurance Beneficiary

How to Customize Your Life Insurance Policy with Riders

5 Advantages of Life Insurance Going Digital

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

What is a savings plan?

Is Life Insurance For Millennials Really Needed?

How Many Insurances Should I Have?

Can You Transfer Life Insurance Policies to Another Company in India?

Life Insurance vs Mutual Funds

Can a Term Plan be the Substitute for a Retirement Plan?

Key Things to Review in Your Life Insurance Policy Document

Life Insurance for Overweight Applicants

When Should You Review Term Life Insurance of Yours?

Is Return-of-Premium (ROP) in Life Insurance Worth It?

How Do Term Insurance Plans Differ for Smokers?

Loan Against Life Insurance Policy

How to Calculate Human Life Value(HLV)?

How to Choose Life Insurance for All Ages?

What are the Benefits of Endowment Policy?

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

What Is the Procedure to choose a nomination in life insurance policy?

Beware of Phishing & Fraud Insurance Calls

Everything You Must Know About ULIP Riders

Why do I Need Life Insurance?

Term Insurance Tips for NRIs in India

Biggest Life Insurance Myths

Choosing Between Short-Term & Long-Term Insurance Plans

Details Required To Be Filled In A Life Insurance Form

Role of IRDAI in the Insurance Sector

Health Insurance VS Life Insurance

Choosing the Right Life Insurance

Term Life Insurance vs. Accidental Death Insurance

Adding A Child to Your Life Insurance Policy?

Compare Different Life Insurance Products Offered By Kotak Life

What is Underinsurance & The Dangers of Being Underinsured

What Is Social Impact Investing and How Does It Benefit Society?

Why do most Indians choose the wrong way to buy life insurance?

6 Things You May Not Know about Life Insurance

Different Types Of Life Insurance In India

Types of Life Insurance Or One Investment, Many Options

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

Reasons Why Term Insurance Claims Get Rejected

Does Life Insurance Policy Cover Covid Death?

Term Life Insurance Vs Money Back Life Insurance

How to Buy a Life Insurance Plan?

Kotak Life Claim Settlement Ratio

What Is Insurance Coverage?

Life Insurance and Millennials

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

What Is Staggered Payment Option Under Term Insurance Policy?

Why Renewal of Term Insurance Plan is Important

Savings cum Protection Plans Secures Your Family from Unforeseen Events

Difference Between Insurance and Assurance?

When are Millennials required to take out a life insurance policy?

Term Insurance Vs Car Insurance: A Budgetary Choice You'll Regret

Life Insurance with Money Back vs Without Money Back

What is Group Insurance?

Insurance Changes You Need to Make Post Marriage

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

Important Terminologies of Life Insurance

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

5 Smart Steps to keep in mind while buying term policies

How Much Life Insurance Do You Need?

Customer Awareness on Information Security

How to Choose a Life Insurance Policy

How to Choose the Right Life Insurance Policy for Your Age?

Terms and Conditions of Term Insurance Plans

Is Life Insurance an Investment?

Different Types of Insurance Policies in India

How Does Life Insurance Work?

How Much Life Insurance Costs and How Much Insurance Cover You Need?

Is It Time to Review Life Insurance Policy of Yours?

4 Benefits of Gifting Life Insurance Cover to Your Spouse

Why Do Life Insurance Agents Avoid Selling Term Plans?

Do Your Financial Planning with Life Insurance!

Should you buy a Renewable Term Life Policy?

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

Voluntary Life Insurance Policy Vs Group Life Insurance

Does Family History Affects your Term Life Insurance Rates?

Top 5 Common Life Insurance Myths and Facts

5 Reasons Why a Women Should Buy a Life Insurance

Is Voluntary Life Insurance the Same as Basic Life Insurance?

Benefits of Buying Term Insurance Plan for Senior Citizens in India

Can NRI Buy Life Insurance in India?

5 Easy Steps to Buying A Policy

Insurance Vs Investment - A Guide to Your Financial Goals

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

What Happens If I Stop Paying My Life Insurance Premium?

Guide for Buying Online Term Insurance Plans for Senior Citizens

Why Life Insurance Is Always a Smart Decision

भारत में जीवन बीमा पॉलिसियों के प्रकार

Why is Medical Test Important While Buying a Term Insurance?

Life Insurance vs Health Insurance

Nominee in insurance - A Complete Guide on nomination in insurance

5 Common Life Insurance FAQs and Answers

What Is Insurance Rider and It’s Benefits?

Important Life Insurance Terms You Must Know

What is the Difference Between Limited and Regular Pay Insurance Plan?

Life Insurance and Retirement Planning

Life Insurance Policy Closure

What is Human Life value and a Human Life Value Calculator?

Why Your Family Should Know About Your Life Insurance Policy?

How To Use Different Types Of Life Insurance For Retirement Planning?

Term Insurance Vs Life insurance: Small Details, Big Differences

6 Different Types of Insurance Policies

Life Insurance for Millennials

Take 100% Responsibility of Your Family with Term Life Insurance

All About Backdating in Life Insurance

What is Life Insurance?

FAQs on Life Insurance

7 Superficial Reasons People Avoid Buying Insurance Online

All about Life Insurance Calculators

Sabse Pehle Life Insurance

All about IRDAI

Types of Life Insurance Policies in India

How to Find the Best Term Insurance Plan in Seven Steps

Can An Individual Buy Multiple Term Insurance Plans?

How to Buy a Term Life Insurance Online

What is Minimum Life Insurance Policy?

What is an Endowment Plan?

How to Make Death Claims on Life Insurance?

Difference Between ULIP and Endowment Plan?

Benefits of Term Insurance with Critical Illness Rider

Guidelines for Linking Aadhar and PAN to Insurance Policies

What is the Current Trend in Term Insurance?

Various Term Insurance Premium Payment Options Available in India

Choosing a Life Insurance Beneficiary

5 Things to Consider Before You Buy Life Insurance

Choose the Nominee of a Term Life Insurance Plan Wisely

9 Most Important Things You Must Learn About Paying Life Insurance Premium

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?