Procedure to get Life Insurance Policy:
The procedure to get life insurance policy can be described as follows:
1.Selection of Company:
The first step in the process of life insurance is the selection of the company. There are many companies that are doing the job of life insurance. The person who wants to get the life insurance policy, must get the information and should know the terms and conditions of these companies to select the best one. When he is satisfied from the information given to him, then he must select the company that is most suitable for him.
2. Proposal Form:
When a person has selected the company, then he fills an application (proposal) form. This proposal form contains many columns like the name and address of insured, the name of the beneficiary, the nature of policy, the amount of premium and all other necessary terms and conditions of the contract.
3. Medical Examination:
After receiving the proposal form, the insurance company makes
arrangements for the medical examination of the proposer. If the insurance company
is satisfied by the medical report, then it considers the proposal.
4. Acceptance of Proposal:
If the company is satisfied from the proposal and medical report, it issues a letter of acceptance, directing the party to deposit the amount of premium, so that the policy can be issued.
5. Payment of Premium:
When proposal is accepted and letter of acceptance is received by the proposal then the proposal deposits the required amount of premium in company’s account and becomes eligible for the issuance of insurance policy.
6. Issuance of Policy:
When the proposal has deposited the required amount of insurance premium, then the company issues life insurance policy. This policy is written Dfa Ho evidence of contract between the insurer and insured and it contains all the necessary terms and conditions of the contract and right and obligations of the parties. In this way, the process of getting insurance policy is completed.
