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- How to Open A Life Insurance Policy in Any Organization
- Formation of A Life Insurance Policy
At the time of executing a life insurance contract some certain principles should be followed.
Normally the contract is executed through proposal and acceptance. The exception does not happen in the case with life insurance like other insurance.
We are going to mention below all steps for execution of life insurance contract and one has to follow step by step for processing one's life insurance policy.
1.Primary Formalities: The insurer advertises for selling his insurance policy to attract public attention.
On the other hand, interested people see this advertisement and try to buy an insurance policy.
As a result of this effort of the insurer, the interested people go to the insurance company and collect the offer form. And it is the first step and primary formality of the process of the formation of life insurance.
2.Offer Proposal: Anyone who wants to purchase insurance policy must come to the company office to collect the policy or he can get insurance policy form from any insurance representative.
If you properly fill in your collected insurance policy form and submit it to the insurance office, you will complete the second step of the proposal of the process of life insurance formation.
3.Medical Examination and Report: The company reads all the details of the form carefully after submitting the insurance form to the company officer reviewing all details if the company decides to take the risk than they call to medical examination of the insured.
The company completes the medical examination by their medical doctors. If the medical report of the proposed insured is good, the insurance policy is issued by the company to him.
4.Review The Question And Answer of The Proposal Letter: The insurer examines the question paper to ensure that the answers given by the insured are accurate.
If the information provided by the insured is considered to be accurate and true, the insurer takes the risk of the proposed of insured.
5. Report of Personal Physician: If the insurer needs to know more details about any disease or accident of the insured, the insurer writes a letter to the insured personal physician.
The insurer also sends a short questionnaire about the health condition to the personal physician.
Once the personal physician fills the questionnaire form and sends it back to the insurer than they decide to make about accepting or cancelling of the insurance policy.
6. The Opinion of The Proposer's Personal Friend: The insurer takes the insured personal friend name in the insurance proposal letter at the first time of executing the insurance policy.
The insurer wants to collect details information from the insured personal friend by sending question paper about his physical condition, past illness and way of life.
7. Proposal Selection: The institutional experts examine the proposal insurance form carefully and also other reports as well as all the necessary and collectable documents.
Then they select the insurance proposal after reviewing the proposal letter carefully.
8. Accept The Offer: The insurance company carefully reviews all the aspects of doctor's report, other documents and if they satisfied they decide to accept the offer and write a letter requesting the insured to pay the first premium.
The offer becomes effective after paying the first premium by the insured and the company assumes responsibility.
The company prepares the insurance policy and sends it to the insured after receiving the first premium.
The company is obliged to pay the full amount of money if the insured died between the gap time of the payment of the first premium and receiving the insurance policy by insured.
9. Proof of Age: The insurer claims proof in support of the age mentioned in the application by the proposed insured. This certificate can be issued at any time during the policy active.
10. Report of the Insurance Representative: If the contract is made through the insurance representative than the report of the insurance representative has to be submitted for completing the full step of the insurance policy.
11. Issuance of Insurance Policy: The insurer sends the policy in the name of the insured after receiving the first installment. And it is called an insurance policy.
At the concluded point we can say that the process of execution of the life insurance contract completes through properly maintained by the above procedures.
