The advantages of a life insurance policy are plenty. However, most policyholders assume that the benefits are limited to only the policy benefits. There are several other benefits that come to you as the policyholder. To ensure that your rights are protected, IRDAI has framed policyholder rights. In order to make sure that you are on top of your policy, read what your rights are.
You can also modify the mode of premium payment and switch from cheques to direct debit or through ECS instructions to the banks. Likewise, you can change the frequency of premium payment to other options like yearly or monthly or half-yearly. You also have the right to change your nominee as many times as you feel like, as long as you do it with the requisite documentation. You can do so by filling up the nomination change form and registering the same with the company. Every insurer may add additional factors as part of policyholder rights; so make sure you read up about it on their website, even before you become a policyholder.
Your Rights
- A proportionate risk premium for the period on cover and the expenses incurred by the insurer on medical examination and stamp duty charges will be deducted
- Cancel a life insurance policy within 15 days from the date of receipt of the policy document if you disagree to any of the terms or conditions in the policy
- If it is a unit linked insurance policy (Ulip) in addition, the insurer can repurchase the units at the price on the cancellation date.
In case of Ulips
- You have the right to know your policy Fund Value at any given time. Request for it
- You have the right to partial withdrawal
- You have the right to switch funds
- You can surrender the policy after the lock-in period
- The nominee or assignee under a life insurance policy has the right to the death claim amount
You can ask for alterations in the policy such as:
- Mode of payment of premium
- Increase in sum assured and
- Premium redirection
