Question

Explain the procedure for taking a life insurance policy.

Answer 1

1. Proposal: The person who wants to take a life policy fills in and submits a printed proposal form available with the UC or its agent. The proposer must give all in formation as required in the form accurately. He should not conceal any material information.
2. Medical Examination: On receipt of the proposal, the UC arranges for the medical examination of the proposer. A doctor on the official panel of the UC conducts the medical examinations.
3. Proof of Age: The proposer is required to furnish satisfactory proof of his age. This is necessary because the rate of premium depends upon the insured's age and the period of insurance. A high school certificate is the most popular proof of age.
4. Security of Documents: The UC scrutinises the proposal form, the age certificate and the medical examination report. If the scrutiny gives satisfactory results, the proposal is accepted. The UC informs the proposer.
5. Payment of Premium: The proposer makes payment of the first premium. With this payment, the contract is completed, and the risk cover begins.
6. The Insurance Policy: The UC prepares the policy and delivers it to the insured. The policy documents contain the name and age of the insured, terms and conditions of insurance, etc.