Every investment allows you some rights to exercise. Here below i am listing some rights to exercise when you go for Insurance or investment.
1) Right To Have Insurance Policy : -
As we know if any misshapen occurs then insurance help to get rid of financial crisis. In some cases it is bound to have insurance i.e if you have bike / car or any other automated vehicle you mus have general insurance. In same way every individual has right to be insure and to protect their family from financial problem, but unfortunately it is not compulsory.
2) Right to Return Insurance Policy : -
You don't have to retain a life Insurance Policy you don't want. You have the right to return it whit in 15 days of receiving policy documents. This is called Free Look Up Period. This free look up period applies to all life insurance policies and health insurance policies with a term of 3 year and more. To return a policy, you need to submit an application. Most insurance companies have a form that can be downloaded from their respective websites or get from their branch office. Submit it yourself.
3) Right to Know Commission Paid on Plans : -
If you buy/planning to buy an insurance plan then you have right to know how much commission will be earn by your insurance agent, fund distributor from this financial product.
A Mutual Fund distributor's commission paid by the fund provider company and it may disclosed in your statement.
For insurance products, the agent's commission depends on the premium, tenure and plans. You can ask your insurance agent to furnish this information before selling you a policy.
ULIP commission are displayed in the benefit illustration accompanying the proposal form.
Get in touch with SEBI for Mutual Funds and IRDA for insurance updates if your agent not providing this information.
4) Right to Life Insurance Claim : -
An IRDA directives gives you the right to claim the proceeds of a life insurance policy that has completed full 3 years. There are no exceptions to this rule. The Insurance company has this 3- year window to verify the authenticity of the policyholder, after which the claims have to be settled. This ruling also applies in case a policy holder expires within 3 years, but the claim is made after 3 years.
This post first appeared on Save Tax Save Money With Life Health Insurance, please read the originial post: here