life insurane term plan

Life Insurance

Life Insurance is a binding contract between the Life Insurance company and the party to which the policy has been issued by the company – in which the company agrees to pay a fixed amount (known as Sum Assured) to the party in case of his death. In return the party would have to pay a fixed amount per annum or per month (depending upon the mode of payment) as a Premium amount.

The Process of Issuance of a Life Insurance Policy

A user would get to know about purchasing a life insurance plan either from offline or online channels. Below mentioned is a generic process how finally the policy gets issued:

  1. User identifies the need of buying a life insurance policy
  2. User compares the shortlisted plans as per his requirement and starts paying the premium amount.
  3. Once the payment is done, the questions asked from the company to the user – related to health, hobbies and general life style of the user are evaluated by the “Under writing” team in any company.
  4. If the Underwriting team feels all the information provided by the user is correct, then only the policy gets issued.

The process may take 3-30 days depending upon the time but yes – one should definitely have a life insurance policy