What's in a life insurance policy?
When we buy life insurance and health insurance. What we will receive is an 'insurance' as evidence. and so that we can study the details of various protections. The policy is a document that the insurance company gives to the insured. To confirm that the insured will be covered by the insurance company If an unexpected event occurs
What information is contained in a life insurance policy?
Important information in a life insurance policy is divided into 5 parts as follows:
1 .Life insurance policy summary
It will be on the first page of the policy with summary of important information as follows:
Name of life insurance Types of insurance and insurance companies
Contract start date contract expiration date and age of the insured at the beginning of the contract.
Contract coverage period, premiums, payment periods (e.g. monthly, quarterly, three-month, six-month, or annual) and premium payment periods.
Insured amount
Additional contracts (if any), such as additional health coverage health insurance premiums and period of payment of health insurance premiums the health coverage should be supplemented with a policy that provides continuous coverage until after retirement, the better.
2. Details of insurance benefits
This section describes the benefits in detail. that we will receive from the insurance that we buy both in case "Alive" or even "dead" such as periodic rebate Cash back at the end of the policy year and dividends if the contract expires, how much more? How much in case of death which such benefits It is set as a percentage of the sum assured.
If we have multiple policies Policy summary should be kept. so that we may know each policy How much will you get, in what year and at what age? and if there is health insurance that is attached to life insurance Summarizing the policy will let us know how much coverage each item is.
3.Policy value table
It is a table showing the value of the exercise of the right in the policy, namely the right to surrender the cash value. The right to convert the policy to a successful money-saving policy and the right to extend the protection period If we want to stop paying premiums In the table are numbers for every 1,000 baht insured, as shown in the example.
From the above table Female insured, aged 45 years, purchased 25-year savings insurance, paid premiums for 15 years, sum insured 200,000 baht. If the insured pays insurance premiums until the end of the 12th policy year (by the end of the policy year will be from the date of the insurance cycle does not mean the end of the calendar year) and wants to stop paying premiums The insured has the following options:
4. Additional contract
In this section, the details are as follows:
In the additional contract There are quite a lot of details. Therefore, the insured should read and understand it carefully. so that there is no problem in claiming when unexpected events occur
5.life insurance application form
At the end of the policy is a life insurance application form. Or the life insurance application that we make with the agent itself. which will show the personal information of the insured Details of insurance and coverage beneficiary and health declaration of the insured.
The information in this section is very important. and considered part of the life insurance contract When the insured receives the policy The first thing you should do is look at the end of the book to check the information in the life insurance application again whether the information entered is correct or not. Various contact information Is the information correct or not, etc. If it is found that the information is incorrect, please notify the representative to change the information immediately.
In summary, life insurance policies It is an important document that we should read and study to understand. You may study on your own or seek further advice from an insurance agent. So that we can benefit from this life insurance and health insurance to the fullest. Worth the premium paid
By Nipaphan Poonsatiensub CFP®, ACC
independent financial planner writer and speaker