7 In the Standard Conditions on Permanent Life Insurance Policy

After so long, eventually you get an insurance policy has been waiting through your agent. As part of its responsibilities, the agency must explain the policy clearly to you. After that, you will be asked to sign a receipt stating the policy that you have received the policy document and get a description of the contents of the agent. In many insurance companies, sales of new agents complete the task after he gave proof of delivery of the policy. That is, a new sales commission is paid after the surrender he returned the evidence that has been signed.

Life insurance policy is actually not too difficult to understand, but because it is written in legal language may be "frightened" to read it. Here are the provisions which are usually contained in the articles of permanent life insurance policy: 1. Period Kontestabel
Generally, after the applicable two-year, insurance companies can not cancel a policy except for failure to pay premiums. That is, when ever you give false information in an application, your claim should not be rejected for that reason.
2. False Statement Regarding Age or Sex
This provision allows the insurer to recalculate the benefits and / or premiums based on age and / or sex of the insured are correct.
3. Suicide
The provisions of this policy generally states that if the insured commits suicide within first two years of coverage period, death benefits are paid only limited return of premiums already paid.
4. Grace period / time freely
After the first premium is paid, insurance policies generally provide a grace period of 30 or 45 days from the due date for payment of further premiums. If in this period continued premiums are not paid, the policy will be canceled (lapse). During the grace period the policy is still valid. If the insured dies within the grace period, death benefits will be reduced premiums which become obligations.
5. Rules of Recovery
This provision allows the policyholder to be restored (reistate) with certain conditions. Typically, the insured must submit a request in writing, corporate underwriting requirements and pay all outstanding premiums (plus interest) and other expenses associated with the recovery policy.
6. Nonforfeiture Benefits
The following benefits can be provided if the premium is not paid but already has a cash value policy:

    * Minimized Coverage Premiums Lunas (Reduced Paid-up). This option allows the policyholder to use the cash value as a single premium for permanent coverage with a smaller amount. That is, valid for life insurance and paid off but the coverage is smaller.
    * Extended Coverage (Extended Term). This option allows the policyholder to use the cash value as a single premium for coverage with the same amount but only until a certain date. That is, the policy turned into a long term insurance depends on the amount of cash value and age of the insured.
    * Cash. With this option, the policyholder withdraw the cash value in cash.
7. Automatic Premium Loan
This provision allows the insurer to pay the premiums through policy loans automatically. This is to keep the policy remains in force as long as the value of policy loans large enough to pay the premium. Policyholders shall agree upon this provision to be enforced.