Diabetes is said to be a chronic health condition that impacts millions of people worldwide. It needs to be taken care of carefully to prevent complications and maintain optimal health. A key aspect of managing diabetes is having a comprehensive treatment term plan that includes various terms and concepts.
In this article, we will examine the most common terms used in term plans for diabetics and explain their meanings.
- Free Look Period
If you disagree with any of the policy’s terms and conditions, you can return the policy for cancellation, stating the reasons for the objection, and you will be entitled to a refund of the Regulations.
You have a free look period of fifteen (15) days from the date you get the Policy Document and a period of thirty (30) days in the case of Policies that are obtained through distance mode and electronic policies.
- Grace Period
You will receive a grace period of thirty (30) days for premium payment frequencies besides monthly mode and fifteen (15) days for monthly frequency if you have not made the required premium payment by the deadline.
The life assured will get the death benefit throughout the grace period. The due-but-unpaid premium will be deducted from the benefit payable in the event of passing away during the grace period.
- Non Payment Of Premiums
Your policy will lapse after the grace period is over, and no benefits under the policy will be given if you have not paid any past-due premiums.
- Revival
If you don’t pay your premiums after the grace period and your policy expires, you can reinstate it under the following conditions:
a) A written application for revivalism submitted within five (5) years of the initial unpaid premium’s due date.
b) The arrears of premiums are paid (at the time of the policy’s resurrection), along with interest (at the company’s discretion) and any relevant taxes. The appropriate revival interest rate at the moment is 9% per year, compounded semi-annually. There will not be any Keep Fit Benefit that would apply at revival.
c) You agree to have a medical checkup at your own cost and give proof of your continued insurability.
d) Depending on the company’s then-current, board-approved underwriting policy, the policy may be revived on conditions that are different from those that applied to it before it expired.
e) Depending on the underwriting standards established by the Board, the Company may choose to revive or reject to revive the policy. The Company will return the sum placed for the policy’s resurrection if the policy is rejected based on the current, board-approved underwriting policy.
Suicide Exclusion: The nominee or beneficiary of the policyholder could avail 80% of the total premiums if the life assured passes away by suicide within 12 months of the date of the initiation of risk or the date of the most recent revival of the policy, whichever is later.
Termination: The risk cover which is received under the Policy will terminate immediately and automatically on the occurrence of the following event. i) On the date of expiration;
ii) On free look cancellation.
After their life span, their passing away date, their surrender date, and their maturity date, respectively.
- Prohibition Of Rebate: No one shall allow or offer to allow, either directly or indirectly, any rebate of the part or whole of the commission that must be paid or any rebate of the premium that is shown on the life insurance policy, nor shall any person taking out, or continuing a policy accept any rebate, renewing, except when such rebate as may be allowed by the provisions of this clause for any risk that is related to lives or property in India. Any violator of the guidelines specified in this section could face a fine of up to 10 lakh rupees.
- Fraud & Misstatement: The Insurance Act of 1938, as it has been revised from time to time, has Section 45’s provisions that would apply to fraud and misstatement.
- Applicability Of The Goods And Services Tax: Based on the type of policy communication address of the life insurance policy holder, Goods and Service Tax (GST) is charged. This could alter depending on changes to the policyholder’s address or rate, among other factors.
Managing diabetes requires a detailed understanding of the various terms and concepts used in term plans for diabetics.
This article has attempted to provide an easy explanation of some of the most common terms used in such term plans.
