The method of procuring life insurace policy
is very simple. The main steps involved in effecting
the life insurance policy are as under:
1. selection of the company. A person who wants to get
his life insured must select an insurance company which
has a good credit standing.
2 Proposal. The person desirous of being insured has to
fill in the proposal form. he has to abide by the basic
principles of insurance explaining the true facts. the
concealment of facts will lead to the cancellation of
contract.
3 Medical Examination. The company on receipt of the
proposal form will get the proposer medically checked
up. On receipt of the doctor's report, the company
will consider the proposal.
4 Acceptance of the proposal. On receipt of the proposal
form and the satisfactory medical report, the company
will issue a letter of acceptance requesting to complete
the transaction at the earliest so that the protection
and security guaranteed by the policy is issued to him
by the company.
5 Payment of premium. The risk of life is covered from
the date, the premium is paid. The premium may be paid in
easy instalments monthly, quarterly, half yearly, or
annually.
6 Issue of policy. On receipt of the premium, the executive
director of insurance company issues the life insurance,
policy of the insured which states,name,policy number,
commencement date, maturity date, amount of premium,
name of the nominee.
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