Are you insured? This question has joined the list of common questions which deal with essentials of life, like - having a car, home, job, education etc. Insurance, as the name suggests, is the cover to shield you and your family against unfortunate risk or events during the policy term. These plans are of different types depending on the needs of the insured. But purchasing the right policy is not a child’s play. And there are n-number of people who got stuck by purchasing wrong policies. What to do with these plans? Whether to continue or not? These are few of the confusing questions which revolve all around your brain when you land up buying wrong insurance policy. Well, there are ways to avoid such a situation from arising in your life –
Firstly, before you purchase a policy, perform a thorough analysis of the terms and condition, you requirements and then forward to buy it. Instead of getting influenced or pressurized by your neighbors and agents try to make a smart decision and select a plan which is designed to cater your necessity. Read the documents clearly as the insurer sends you a crystal clear plan with genuine details. If you are satisfied with every fact and figure ranging from premium and cover to benefits and exclusions, then don’t delay in buying the insurance policy. But, if by chance, some details got slipped from your sight and you ended up purchasing a wrong plan then you have a next option of Free look.
Now that you have landed on a wrong deck, you have an option of Free look period where you can cancel the policy. According to the guidelines laid by IRDA, free look period is a grace period wherein the insured or the policy holder has the option to cancel the policy if he/she is not satisfied with the benefits or features of the plan. This feature saves many policy buyers from reaching a wrong coast. The free look period is generally of 15 days within which you need to apply for cancellation of the policy if displeased with the terms and conditions. Subsequently, your policy will be cancelled and you will get back your premium after some minor deduction like medical charges (tests if any), stamp duty etc. But, now the issue arises if you have missed the free look period and you need to get free from your irrelevant policy.
The last option is to surrender your existing policy. In case your free look period has passed away, you can surrender your policy anytime by paying away its hefty penalty. There is no fixed surrendering charge and keeps changing according to the plan. Only in case of ULIP plans, IRDA has defined a cap value which states the maximum amount for surrender where as endowment and money back plans never mention any specific amount. Generally, in some traditional plans you need to wait for atleast 3 years and then apply for surrendering process or else you are not given anything. In case of surrendering the policy, you don’t receive full amount but yes after some deductions.
Hence if you are unable to achieve satisfaction from any policy, you have all the rights to get free from confusion of dealing with it by stopping anytime. Make correct decision and choose insurance policy wisely to stay clear and free from puzzlement.