Personal Finance
No, this is a violation of section 41 of the insurance act which forbids direct or indirect inducement for purchase or renewal of policy
Updated : Jul 10, 2018, 06:55 AM IST
No, this is a violation of section 41 of the insurance act which forbids direct or indirect inducement for purchase or renewal of policy. The act also prescribes penalty of up to Rs 10 lakh for any violation.
The same company should be able to enhance your coverage either through the existing contract or issuing a fresh one over and above the existing one. It will depend on whether your existing policy allows increase of sum assured. If not, then you will have to buy another policy.
The risk in an ULIP plan depends on the underlying fund chosen by the customer. Most ULIPs have multiple fund options which vary from liquid, debt, balanced and pure equity. Liquid funds have a short term horizon with very low underlying risk, Debt have slightly higher risk, Balanced have medium risk and Equity funds have higher underlying risk. You can accordingly choose a fund based on your risk appetite. Also, you can participate in transparent market linked investments that are tax free through a ULIP.
Normally, switching from one policy to another is not allowed by insurance companies. However, some companies may consider allowing the same in an ULIP assuming the underlying benefits are similar. You will need to check with the insurer.
Rushabh Gandhi, Deputy CEO, IndiaFirst Life Insurance
Send your queries related to life insurance to personalfinance@dnaindia.net