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:
- User identifies the need of buying a life insurance policy
- User compares the shortlisted plans as per his requirement and starts paying the premium amount.
- 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.
- 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