Although life insurance has been in our country for a long time, there was less awareness among the people. At present, the importance and demand of life insurance is increasing day by day in Bangladesh. In today’ article we will discuss 10 important life insurance issues.
1. Policy Surrender or Return:
Policy surrender is the policyholder’s assurance not to run or close the policy for the next period before the policy expires. Normally no refund or compensation is available if the policy is received within two years. Submission of the policy at any time after the expiry of two years may result in some compensation. That compensation is less than the total premium deposited. The return price depends on the cash value. The list of year based cash value of some companies is mentioned in the policy document. Cannot be partially returned.
2. Bonus for not claiming:
In some insurance policies, a portion of the sum insured is given as a bonus for not making a claim or for not making a claim after the specified time of the insurance has passed. Which is known as ghang aikhaog inghaajh. The company never pays the bonus in cash or by check, but adjusts it as a premium in case of policy renewal.
3. Nominee in insurance policy:
Those who are included in the life insurance policy as nominees will be considered as heirs and will get the entire financial benefit of the insurer. No one else will get a share or share of the money due.
4. Premium Waiver:
Permanent physical disability premium waiver facility due to accident and illness of the insured. In this case the policy continues till the death of the policyholder or the expiry of the policy. If the policy has premium waiver facility.
If the insured is completely and permanently unable to run his / her own business due to an accident or illness, it is called death in the profession. Death in the profession is a permanent disability. In addition, disability can be partial, temporary or complete.
. Lapse policy fully enforced:
For example, if the policy premium is not paid on time, the policy lapses. At the time of taking out the first policy on the eve of re-introduction of the lapse or lapse policy, the underwriter re-enforces the policy based on the insurable interest along with the proof of policy acceptance. In the case of policy reinstatement, the emphasis is on the specified time.
. Insurable Interests:
Life insurance policies are governed by the law of insurable interests. Which is limited to certain designated persons. If the insurable interest is protected, there is financial gain and if there is loss, there is financial suffering.
. Policy loan
The policy loan is disbursed on the basis of attainment of surrender value in the policy. The current value of the policy is the surrender value. The company lends up to 90% of the surrender value.
The amount that the insured is able to pay on a monthly / fortnightly / annual basis as opposed to the insurance contracted with the company is called premium.
10. Premium for additional risk:
Additional premiums are levied on the premium rate in cases where additional risk is observed due to the insurer’s professional reasons and the mortality rate is higher than the normal rate. Such as: – Excessive risk is observed in diabetic patients, smokers, people working in elevators or convents and other dangerous occupations.