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IF YOU HAVE AN INSURANCE POLICY WITH LIFE INSURANCE CORPORATION OF INDIA (LIC)
- Do not forget to register proper and valid `Title’ to your policy monies. Unless the `Title’ is clear, Claim settlement might be very difficult and time consuming, resulting in a lot of heartburn, both for you and your dependents.`Title’ can be as a Nominee or as an Assignee or as a Beneficiary under the provisions of Married Woments’ Property Act 1874 depending on your requirements. Each one of these `titles’ has its own advantages, disadvantages and legal implications.
- Do not forget to pay your premium in time. For all practical purposes, your policy lapses on the expiry of the permissible grace period for payment of premium. Revival requirements keep changing depending on how many years your policy has run before lapsation. During the lapsation period, no death claim is payable, unless, the policy is eligible for claims concession.
- Keep your policy documents(s) safe. They are to be surrendered at the time of claim settlement. Unlike Bank account, where, duplicate passbook can be obtained without any problem, getting duplicate policy bond is a cumbersome and expensive proposition. Much worse is the case at the time of death claim settlement, if the claimant does not have the policy bond.
- If you have borrowed against your LIC policy, ensure that the loan interest is paid in time. It is calculated Half-Yearly and you can pay 2 consecutive Hly loan interests together. If not, it gets compounded right from the beginning, which, is quite high and definite loss for you. Repayment of principal is at your option.There will be no separate loan interest notice unlike premium notice. Loan outstanding with loan interest due will be shown in the premium notice itself. Onus for payment of loan interest lies in you .
- Ensure that your LIC policy(ies) carry(ies) Double Accident and Permanent Disability due to Accident benefit, if not already done. These benefits are allowed on all LIC policies except those on Minor Children and Pension plans, by payment of a little extra. In case of some of the LIC plans like Jeevan Anand, these benefits are built in the basic plan itself.
- For all new LIC policies you go in for, you can consider inclusion of Riders. These riders are designed to enhance scope of the basic insurance plan you propose to take, with a little extra premium. Three riders available right now are,
- Double Accident + Total and Permanent Disability Benefit due to Accident to take of the Accidental risk,
- Term Rider to provide additional life insurance coverage at a very low extra premium,
- Critical illness rider to take care of disablement and consequent drop in your income as a result of some of the most dreaded diseases-12 to 13 in number.
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