Explain The Proper Procedure Of Taking Life Insurance Policy?

To take out a life insurance policy either on your life or the life of another, you must have a justifiable cause. In other words they must be a family member or be aware and agree to have their life insured.
You are required to take an aids test to ensure you do not have the virus, based on the results, they will move forward with the application.Alternatively you can elect not to have the test, and sign an exclusion that if this occurs, the claim will not pay out.
You must answer an intensive questionnaire about your past and present medical history, lifestyle and habits, for example smoking and drinking.
You are required to tell the truth because if evidence is found  later  that proves the contrary, the claim may be refused.
Should this all prove OK, they will give you a quote on a monthly amount to pay, based on the underwriting they do on your application. Taking into consideration the amount you want cover for.
Then once premiums are paid you are covered.
Some conditions of exclusion are standard, and exclude death by suicide in the first two years, and sometimes also exclude death resulting from undisclosed activities like skydiving and paragliding.

The procedure of taking life policy is very easy. The following are the different steps involved in taking the life insurance policy.

Submission of proposal form:
                                                  A person desiring to take policy of life insurance will have to fill in the proposal form supplied by the insurance company. The proposal form requires information with regard to the health, the proposer, his family history, his age habits of life, the amount a kind and term of policy.

Submission of agent's report:
                                                  The agent prepares a report on the basis of proposal from duly filled in. the report contains the facts on the basis of proposal form and also from the enquiry made by the agent. The contract of insurance largely depends upon agent's report.

Doctor's report:
                            The doctor of insurance company also presents a report regarding the proposer to the company. The doctor certifies that the customer is free from fatal diseases and there is no risk if the company issues him a life insurance policy. The report I very important because the company evaluates the risk of life on the basis of this report.

Certificate of age:
                              The proposer will have to submit the certificate of his actual age. The certificate is the proof of age. It is very important because the rate of premium is determined on the basis of actual age. The customer must provide true information to the company. In case of concealment and wrong information, the insurance company has a right to cancel the policy.

Scrutiny of documents:
                                       The insurance company has the right to check the documents filed by the customers. The contents of the proposal form, medical report and the certificate of age are examined by the insurance company.

Acceptance of the proposal:
                                               On consideration of the above facts, the insurance company decides to insure or not to insure the life of the proposer. When the proposal is accepted the insurance company informs the customer and demands the first premium. If the proposal is rejected, the letter of regret is sent to the customer.

Payment of first premium:
                                             The proposer should pay the premium amount to the company on the receipt of the demand notice for the premium. The insurance contract is completed in receipt of the first premium. The company issues a receipt for the amount of premium. The receipt acts as a contract between the insurance company and the insured person. Later on, the company issues the life insurance policy.