What things to declare for existing life insurance policies

POSTED BY Pankaj C ON May 25, 2013 1:41 pm COMMENTS (12)

Hi,

When I was recently applying for a new term life, I came across T&C which states that the insurance company would want to be notified for any life insurance proposal from any provider gets denied, rejected, accepted with modified terms. Do you need to inform the existing life insurance policies about all new proposals which you may make? I believe you will be required to intimate them of any additional life cover which you may take up. Do we need to inform about proposal status as well?

Thanks!

12 replies on this article “What things to declare for existing life insurance policies”

  1. Dear Pankaj, if the claim happens, you mean to say, family w’d have to file claim only with your Term cover providors & not with Endowment & ULIP ones?

    Think over it my dear friend.

    Thanks

    Ashal

  2. Dear Pankaj, do not get me wrong. Please do tell me when there is claim, you are no more to help your family, how ‘ll your family members ‘ll file claim with 4-5 Insurers & later on ‘ll follow up with so many insurers?

    The same thing (risk cover on your life) can be done by purchasing just one big policy from the insurer of your choice. In case you are not comfortable with online policies of pvt. insurers, you can opt for LIC.

    Thanks

    Ashal

    1. Pankaj C says:

      Ashal,

      Where did I mention that I am taking 4-5 policies? I hope you are not counting endowment & home loan cover amongst them. I have done my analysis on term life policies & going ahead with 2 policies covering my needs. I believe there is nothing wrong in checking with 3-4 providers & choosing the best cover you can get as per your health.

      Thanks!

  3. Dear Pankaj, KISS stands for Keep it Simple silly. i.e. what about simplicity in your life be it general or financial?

    Are you getting me? I want you to keep your life simple.

    thanks

    Ashal

    1. Pankaj C says:

      Ok. Thanks for your advice but let’s limit it to the question. I thank you for your inputs.

      What made you think that I am complicating my life? It’s a public forum & I am trying to get feedback for my doubts.

  4. Dear Pankaj, no need to inform X for your policy Y cancellation.

    May i ask you a counter question? have you ever heard of KISS?

    thanks

    Ashal

    1. Pankaj C says:

      Thanks again. What is KISS? how does it relate to my question?

  5. Pankaj C says:

    Thanks Ashal. Appreciate your help.
    Regd 1b, if the proposal for X doesn’t ask for simultaneous proposal & I am returning Y for any reason in free look period, do I need to intimate X about it? Why? Can X change policy terms after the intimation?

  6. Dear Pankaj, Let me try to answer your query.

    1a. If I decide to keep X & return Y or vice versa, should I inform LIC & ICICI about this new policy?
    no need to inform the old insurers for the new policies you are purchasing.

    1b. Do I need to inform X about proposal status for Y / premium loading or it being returned and vice versa?
    Yes

    2. Later if I decide to go for another term life Z & for any reason end up returning it, do I need to keep X / Y updated along with LIC/ICICI? Ofcourse, I will need to inform them in case I acquire Z.
    NO.

    Thanks

    Ashal

  7. Pankaj C says:

    Thanks for helping out. Let me clarify about my question.

    Let’s say that I have a LIC endowment policy with cover of 5L & ICICI home loan cover of 10L. Now, I apply for 2 term life policies X & Y where I declare about existing cover. For X, it gets accepted with regular prem but for Y they charge a loading.

    Now my questions:

    1a. If I decide to keep X & return Y or vice versa, should I inform LIC & ICICI about this new policy?
    1b. Do I need to inform X about proposal status for Y / premium loading or it being returned and vice versa?

    2. Later if I decide to go for another term life Z & for any reason end up returning it, do I need to keep X / Y updated along with LIC/ICICI? Ofcourse, I will need to inform them in case I acquire Z.

    Thanks,
    Pankaj

  8. Do you need to inform the existing life insurance policies about all new proposals which you may make?

    —:> YES

    I believe you will be required to intimate them of any additional life cover which you may take up.

    –> Old insurer (one who has ISSUED a policy) need not be informed of new insurance polices you take
    When your nominee makes the claim he/she will have to enter in each claim form details of ALL valid policies.

    Do we need to inform about proposal status as well?
    —> YES

  9. Dear Pankaj, you mean to say you are applying for X sum assured term cover with company A & at the same time or just after few days, are applying to company B for Y sum assured?

    Where is the need to apply for 2 different covers with 2 different insurers so that the query comes for proposal stage policies?

    Thanks

    Ashal

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