Bought a coverage however not glad with the advantages it’s providing? Effectively, one can take into account cancelling the coverage and shopping for a brand new one, specialists recommend.
Whereas this may look troublesome within the long-term, one can cancel it throughout the ‘grace period’ simply and avail refunds. Nonetheless, earlier than cancelling the life insurance coverage coverage, you will need to analyse the explanation for cancellation.
Cancelling the coverage to go for a greater coverage is without doubt one of the legitimate causes to cancel it.
Essentially the most amicable approach to cancel the coverage, as Abhishek Tiwari, CEO of Iassure says, is to write down a letter/e-mail to the insurer requesting termination of the coverage after which claiming a refund, if relevant.
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Life Insurance coverage is a long run contract. Nonetheless, they arrive out with a free-look interval of 15 to 30 days from the date of coverage inception below which a policyholder is free to cancel the insurance coverage coverage and get a refund.
“For cancellation, the policyholder is required to submit a written cancellation request for the same with policy details, date of receipt of the policy document, the reason for cancellation and agent details. Upon receiving the request, the representative of the insurance company connects with the policyholder to know the reasons for cancellation and try to provide solutions,” explains Naval Goel, CEO and founder, PolicyX.
“Nonetheless, if the policyholder nonetheless needs to cancel the coverage, the corporate will course of the request and concern a refund after deducting costs,” he provides. The fees embrace medical examination bills incurred by the insurance coverage firm, pro-rated danger premium for the interval on cowl and stamp obligation costs.
As soon as the free look interval will get over, one can cancel the coverage by way of give up.
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“On this case, the Insurance coverage firm may deduct extra costs and refund the paid-up or residual premium for a future interval because the case may be. Usually, prospects cease paying the premium and the coverage lapse routinely after retention efforts made by the corporate,” Tiwari opines.
Disclaimer: CNBCTV18.com advises customers to examine with licensed specialists earlier than taking any funding selections.
