Posts Tagged ‘Insurance’

How to Cancel an Insurance Policy

September 5, 2012

No doubt, if you will ask people around, you will found every third person has taken an insurance policy either life or health insurance. You will be shocked when you came to know that more than 60% of these policyholders are not aware with the process to cancel a policy. This is because they rarely read policy document after taking a policy.

We get relaxed after taking an insurance policy and never read the policy document. We read it only when it comes to claim against a policy. When our claim get rejected due to a specific reason, we come to know that we were misguided at the time of taking the policy. Generally, we think to cancel a policy only when it does not fulfill our requirements or its terms and conditions does not matches the terms mentioned by the broker.

As per IRDA (Insurance Regulatory and Development Authority) guidelines, each insurance company provide a grace period of 15-20 days after issuing the policy document to a policyholder. If you are not satisfied with the policy terms or benefits, you can submit an application to cancel your policy during this time. A nominal charge of Rs 50 -100 is charged for bond/stamp paper and processing fees of the application, remaining amount is credited to your bank account or a account payee cheque is issued to you.

Whenever, you have decided to cancel a policy, you need to write an application to the same branch manager where you have submitted the application form to take that policy. In this application, you need to mention why you are willing to cancel the insurance policy. Mention the reason whether, you are not satisfied with the policy benefits or you were misguided by the agent at the time of taking the policy. Then give a request to cancel the policy.

Within a week of submitting the policy cancellation request, your policy get cancelled. Insurance company will dispatch the cheque against your policy after deducting a nominal charge of stamp paper or processing fees. Remember, once you send the cancellation request for your policy, you will not be able to get any benefit that your policy provides.


Tax Saving Tips and Tricks in India

August 25, 2012

Generally, we used to plan our tax saving at the end of each financial year in February and  March. It hampers our budget in those 2-3 months as we invest all our income to get benefit on tax. Insurance agents also get more active during this time as they easily found customer to complete their targets. Due to instant decision that we take, sometimes we invest our money in wrong investment scheme. It is also found that agents sell wrong policies to their customers during this period.

Due to lack of time and deadline that we have to submit our investment proofs, we never do much research on the available investment options. We just pay the premium, get the receipt and submit it as the investment proof. Many people do their entire investment during this time. So, they also borrow money from their friends and relatives. It unnecessarily affect their budget as they need to pay all these dues in upcoming months. The best way to avoid such situation is to start your tax saving from the very beginning of financial year.

Plan your investment at the beginning helps you to choose the best scheme of investment. You can bargain an agent on the premium while taking a life insurance or ULIP plan. Many agents offer you to pay upto 50% of your first premium at their own. But, they provide such offers only in initial months of the financial year as they hardly get customer to complete their targets. Starting your investment from the early age helps you to maintain your budget also. You can allocate a fixed amount of your earnings for saving purpose. With the small investments that you do every month, you can complete your saving needs. Doing so reduces your burden at the end of financial year.