A life insurance policy is a policy that provides cover to the family or the nominee of the insured with financial support after the death of the insured in exchange for a certain amount of premium every year. Life insurances can be compared to a piece of cloth. If it does not fit a person, it is not necessary that it will fit the other, with a different built (compared to different needs in a life insurance). Every person who is looking to get insurance, has their own personal needs, budget, savings, future goals and a different level of risk appetite. A good life insurance policy is what will satisfy their needs and that can be achieved by carefully researching about the different possibilities. A plan might be useless for one but it might benefit another person who is looking for different things that the other didn’t require. To not regret buying a life insurance policy, you can consider policy fees, overall expert ratings, complaint ratings, financial strengths, credit ratings, etc. Product reviews and articles about the companies might also help. But do you already have a life insurance policy that you completely regret buying! Do you just want to stop paying the premiums and drop the plan? There’s a process to do all this. You can turn that regret frown into a satisfied smile after you follow certain steps and take some suggestions.
- Leave it during the free – look period
The IRADA – Insurance Regulatory and Development Authority of India gives the life insurance policy holders a chance to terminate their life insurance if they don’t find it suitable to their needs and want to drop the plan. The chance is given though a period of 10 to 15 days which is known as the “free – look period”. If a policy holder thinks that their plan isn’t giving them the benefits that they wanted or it is not suitable to their lifestyle, they can return their policy without getting penalized for it. For this, you need to inform your insurance agent from the insurance company about it in writing, after which they will return the premiums which you had paid to you which will exclude the expenses for the medical tests and the stamp duty.
- Can I surrender it?
No! Life insurance policies do not have an option of surrendering the policy any time you do not wish to continue. If you regret buying the life insurance policy, you should leave it. Ho, you ask! Well, as mentioned above, you can either leave it during the free look period or you can simply stop paying the premiums which will automatically terminate your life insurance plan. Of course, when you suddenly stop the payment of the premiums, you will not be entitled to the retuning of the premium but if you choose to leave it in the free – look period, you will get the premium back after the deduction of the expenses for the medical tests and the stamp duty.
- Alter you policy
You can regret buying a life insurance policy because of many reason such as it doesn’t suit your requirements, the sum assured is very low, etc. Now, without dropping the plan, you can make certain changes to it which will help to turn that regret over. The option is to buy an additional rider to up your existing life insurance policy. Of course, it will cost you a bit more but it will ensure better benefits. Also, it is better than returning or dropping policies mid- way. Your life insurance cover will be strengthened with the rider, giving you more benefits.
There is a concept called paid – up policy which can benefit you. If you do not like your life insurance policy, you can choose to convert the ULIP or endowment policy into a paid – up policy. In this case, your policy lapses and you do not have to pay any more premiums and you will get the cover for the amount and the number of premiums that you paid for; meaning, the premiums you already paid for will be accounted and given in a cover when claimed. This also comes with a disadvantage that the insurance company will not be paying any bonuses in case your policy acquires a paid up status. But, you stopped paying the premiums, nonetheless and you will get all the bonuses before your policy acquired the paid – up status. This helps you drop the plan, stop paying the premiums as well as get the claim cover for the premiums that you already paid.
If you regret buying a life insurance policy, you can follow these methods to reverse the dissatisfaction and benefit from the policy anyway.