What is the difference between an endowment policy and money-back policy? Which is better?
An endowment policy, as the word suggests, 'endows' you with a promise to pay a sum of money on surviving till the end of the chosen policy term, and also promises to pay a sum of money in case of unfortunate death of the life assured anytime during the policy term. Endowment plans are best suited for financial goals that require creation of a lumpsum corpus at the end of a chosen term. Like, retirement corpus, fund for children's higher education, daughters marriage. The policy term should be equal to or close to the due date of the goal.
A money-back policy, which is also technically called as an anticipated endowment plan, pays a predefined sum of money at predefined intervals. It best suits those who need money at periodic intervals.Both the products are good plans and cater to different requirements at different stages of life.
After an insured person dies, in how much time should the insurance company be informed? And how long does it take to get the death benefit in case of term plans, Ulips and traditional plans?
We consider every death claim irrespective of any specified timeframe for claim notification. However, it is important for the beneficiary to intimate for the claim within a reasonable period to avoid delay in verification process. If the policy has run for at least two full policy years, it takes seven days from date of receipt of all documents to process the claim. If the policy has run for less than two complete policy years, it is referred to as an 'early claim' and these are subject to verification. Our current average turnaround time for an early claim settlement is 30 days.
The basic documents required for settlement of death claims include life assured's death certificate, policy bond, nominee's KYC, bank details of nominee for NEFT and some medical documents as indicated on the claim notification. We assist the beneficiary from the time claim is notified to us till payment is disbursed in all respects through a dedicated team.
The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
Today, Anuj Agarwal, is the CEO of Bajaj Allianz Life Insurance, answers your questions
An endowment policy, as the word suggests, 'endows' you with a promise to pay a sum of money on surviving till the end of the chosen policy term, and also promises to pay a sum of money in case of unfortunate death of the life assured anytime during the policy term. Endowment plans are best suited for financial goals that require creation of a lumpsum corpus at the end of a chosen term. Like, retirement corpus, fund for children's higher education, daughters marriage. The policy term should be equal to or close to the due date of the goal.
A money-back policy, which is also technically called as an anticipated endowment plan, pays a predefined sum of money at predefined intervals. It best suits those who need money at periodic intervals.Both the products are good plans and cater to different requirements at different stages of life.
After an insured person dies, in how much time should the insurance company be informed? And how long does it take to get the death benefit in case of term plans, Ulips and traditional plans?
We consider every death claim irrespective of any specified timeframe for claim notification. However, it is important for the beneficiary to intimate for the claim within a reasonable period to avoid delay in verification process. If the policy has run for at least two full policy years, it takes seven days from date of receipt of all documents to process the claim. If the policy has run for less than two complete policy years, it is referred to as an 'early claim' and these are subject to verification. Our current average turnaround time for an early claim settlement is 30 days.
The basic documents required for settlement of death claims include life assured's death certificate, policy bond, nominee's KYC, bank details of nominee for NEFT and some medical documents as indicated on the claim notification. We assist the beneficiary from the time claim is notified to us till payment is disbursed in all respects through a dedicated team.
The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
Today, Anuj Agarwal, is the CEO of Bajaj Allianz Life Insurance, answers your questions