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Overview Life Insurance in Amritsar
Amritsar, the land of the Golden Temple is the second-largest city in Punjab. It is one of the fastest-growing cities in India. Apart from being the spiritual and cultural centre of the Sikh religion, the city is also a major commercial, cultural, and transportation hub.
With such bustling commercial activity, the city has seen a rise in the income of its people. However, lifestyle diseases and illnesses have also seen an increase in Amritsar. The Covid-19 pandemic also showed how uncertain human life is. These facts have seen the people of Amritsar purchasing life insurance plans.
Key life insurance companies in Amritsar are Aviva Life Insurance, LIC of India, SBI Life Insurance, Max Life Insurance and the like. These companies are now providing various life insurance plans to the people of Amritsar which would help them to meet their financial emergencies in a prudent manner.
Additional Reading: Why go for Life Insurance?
Amritsar is a very busy city owing to the Golden Temple and it being the industrial hub of Punjab. The people of Amritsar have seen their lifestyles improve but this has also increased lifestyle-related health challenges. The Covid-19 crisis has also crippled the public finances leading them to scout for their savings to carry on with their daily financial needs. At such times, it becomes necessary that people should be adequately insured be it health or life insurance. The people are Amritsar are now increasingly aware of the need for having a comprehensive life insurance cover that would provide adequate protection to them and their families under unfortunate conditions.
Additional Reading: What are the different types of Life Insurance?
How to apply for a Life Insurance Plan in Amritsar?
There are various types of life insurance plans in Amritsar. The application process is similar across various life insurance plans and insurance providers. One needs to however understand how life insurance companies process their life insurance plan application. There is a process called underwriting applied by life insurance companies to determine the potential insured’s risk element for dying.
Every insurance company has a different approach to assessing your risk. Common steps as shown below are needed to be carried out by the potential policyholder to evaluate if they qualify for availing of life insurance policies.
Step 1: Fill the application form with the below particulars
- Name
- Height
- Weight
- Health history
- Family health history
- Lifestyle habits
- Annual income
One should answer these questions honestly and accurately. Otherwise, there are chances of your policy getting cancelled along with any non-refund of your premiums paid.
Step 2: Undertake in-person medical exam (relevant for some policies)
Some insurance policies have the requirement for answering health-related questions on their application, while others may require the potential policyholder to undergo an in-person medical exam to evaluate their overall health. The medical examination will be arranged mostly by the insurance company agent through a paramedical. The below particulars may form part of the medical exam undertaken.
- Review of your and your family’s medical history
- Review of your lifestyle habits like drinking, smoking, exercise, diet and so on
- Checking your height, weight, and blood pressure
- Taking a blood and urine sample
- Perform additional tests like treadmill test, ECG, chest X-ray
Step 3: Premium payment for chosen life insurance policy
To avail of life insurance, select a death benefit equal to your prospective lost income. Select a life insurance policy, the premium of which is affordable. One may not qualify for a life insurance plan if they try availing a death benefit greater as compared to their risk level. Also, non-payment of premium could lead to the cancellation of the life insurance policy.
Consider Additional Reading: How to apply for a Life Insurance plan?
Conclusion
Amritsar has seen tremendous economic development. However, the downside is that the residents of the city are prone to various health issues owing to increasing pollution levels in the city. This has made insurance providers come with good life insurance plans to help the residents meet their life goals with certainty.
Life Insurance in Amritsar FAQs
1. What are the different life insurance policies available?
Important life insurance policies are term insurance, endowment plans, child plans, ULIP, retirement plan, savings, money-back and whole life insurance.
2. How much life cover should I purchase in a Term plan?
For evaluating how much life cover is to be purchased for a term plan, there is a formula to be applied. The formula is Minimum sum assured = Annual Income x 10 times + Loans/Liabilities. Based on this formula, you can calculate the requisite life cover to be purchased in the term plan.
3. How much time does it take for a claim to get settled?
Normally the settlement of claims can happen anywhere between 8 – 15 days depending on the existing conditions pertaining to your medical claim. However, the claim settlement also depends on the insurance provider’s terms and conditions with respect to the life insurance policy.
4. Can I continue the life insurance plan even after becoming an NRI?
Yes, you can continue your life insurance plan even after you become an NRI. However, one should note that the term insurance plans will not hold validity for the first two years if your resident status change is not intimated to your insurance provider. The insured will require updating their KYC status as non-residential in all of their ongoing policies. In case, they fail to update the same, then they will not be able to renew their existing. Claims will also be settled only through the account from which premiums were being paid.
5. Will my family face any issues while making a claim?
As per section 45 of the Insurance Act, 1938, an insurance provider cannot reject any life insurance claim even after 3 years of issuing such a policy. This assures that the family of the insured is protected in the event of their untimely demise. However, the insured should also fill the proposal form with accurate particulars at the time of purchasing the policy so as to avoid rejection while making the claim.