October 8, 2022

Insurance Policy Life Cycle

Introduction


An insurance policy is one of the most important things that will play a significant role in your life. There are over a hundred types of insurance, each of which offers different financial coverage policies. Some of the most popular types of insurance are life insurance, health insurance, vehicle insurance, travel insurance, etc. Here vehicle insurance is the conclusion in most countries. And others depend on the individual’s choice. 

There are several benefits you will get from insurance in emergencies; one of the most prominent features is the economic assistance that will prevent your bank balance from becoming empty and ruining your savings and wallet. If you suffer from a severe medical issue, health insurance will cover your medical expenses and all related expenditures. Your tiny investment in this insurance will be worth it in emergencies. 

There is an entire procedure for getting an insurance policy; here in this article, we will cover this entire cycle of insurance that will help you to know more about the same. If you want me to explain the insurance policy life cycle, then you are at the right place; here it is: 


What is an insurance policy life cycle?


There are several stages in the life cycle of an insurance policy. These stages jointly make insurance come into force. Below mentioned are these stages; let’s have a look at them: 

Stage 1 

The application stage is the first and primary stage of an insurance life cycle. The customer offers coverage through an application and all necessary details, along with valid reasons and proof. Like if you have medical insurance and you are hospitalized due to a medical emergency and have to pay the bill of thousands of dollars. Here, you need to apply for coverage with the bill as proof. 

Stage 2

The second stage is also known as the review or underwriting stage, where the issuer officer will look at your applications and decide whether to issue the claim or cover the expenses or not. In this step, the issuing officer has the authority to request additional documents to make it easy to cover the claim. 

Stage 3 

If the issuing officer verifies the application, then the third stage is known as the stage of policy issuance or sale; the coverage is offered to the customer. The coverage is equivalent to the bills or the mind mentioned in the policy deed. 

Step4 

The last step is also known as the renewal or continuation stage, where the insurance company will ask the customer whether they want to review the policy again or switch to another one. If the customer agrees, then further steps will be carried on. 

I hope the stages included in the life cycle of the insurance policy are clear to you. 


What is a life insurance policy?

The policy of insurance is just like the legal deed or contract between the insurance company and the customer, which contains all the agreements between them. This includes the maturity benefits, nominee details, beneficiary details in case of the death of the customer, several nominal amounts or premiums has to be paid, intervals when the premium is paid, and many more related agreements. 

In future emergencies, the insurance company will work according to the insurance policy signed by you. The customer is not liable to file a case against the company if the insurance company is following all the rules and regulations mentioned in the policy. Both the customer and insurance company are bound as per the rules and regulations of the policy deed. The breach of contract by the company will lead to compensation for the customer with an additional amount other than the policy. 


What is the whole life insurance?

The whole life insurance is also known as the extension of life insurance, where the customer will get the coverage for a lifetime or till attaining the age of 99 years. Most parents used to buy this life insurance policy for their children after birth. The life insurance company covers all medical and health expenses in case of emergencies. There is another term known as the term life insurance, where the life insurance period is limited, and the medical expenses or after-death compensation to the family will be offered to the family for a particular period. 


Can we get life insurance for the whole family? 

Usually, the partner’s health insurance will cover both the husband and wife’s medical expenses, and additionally, their child is also covered by the same insurance. But if you want to include your whole family in the life insurance, then you need to get the group life insurance. Most businesses buy this type of insurance for their employees, and a small amount of money is deducted from their salary as premiums. 

Yes, it is easy for you to get life insurance for your whole family, which is included in the category of group life insurance. You can include everyone in the insurance, from an elder to the kids. The premiums and transaction fees vary accordingly. But the consent of all the family members is necessary to bind them all in life insurance. 


What kind of disease is covered in life insurance?

Almost all kinds of diseases are covered in life insurance, from liver failure to heart disease. The treatment of every medical condition and circumstance will be covered under your insurance policy scheme. Getting treatment from a recognized hospital or clinic is highly recommended to enjoy 100% compensation benefits. 


Conclusion 

While applying for the expense claim of your life insurance, make sure to produce all the authentic details, documentation, and proof of the medical expense to the insurance company. The procedure of issuing a claim van lasts up to 20 working days or more. But if you have a cashless life insurance policy, then the insurance company will directly contact the hospital and will pay the bills accordingly. 


 

Insurance , , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *