All of us buy a life insurance or health insurance policy (term plan, ULIP, Endowment, etc.) Since, tax saving is coming us for the year, and agents are ready to take charge of you for selling insurance policies to save tax.  Being agents, they want to make sure; you do less work and take up the task of filling up your proposal form themselves. Some agents, whose whole focus remains on their commissions, make sure that no information is disclosed which can lead to insurance proposal form rejection or increase in premium etc. just to make sure that the policy is issued quickly and get it signed from you in blank.

Fill the Insurance Policy form yourself

Most people feel bored or find it tedious task to fill in a long proposal form by them. After all, the agents are there to do it. It’s an amusing situation.  But, our little investment in filling up form ourselves to make sure us to find out each and every little detail which would help us to take care of our children or family when we are not around them
Don’t Declare wrong information while taking Insurance Policy
This happens with a lot of insurance customers. They tend to give wrong information in the documents; as giving correct information tends to increase the premium. (This happens a lot with smokers.) But, if you give wrong information in the documents or try to misrepresent anything, it means company is covering a higher risk person for a normal premium and company is liable to reject your claim. In case, you have already provided any wrong information in your policy document, you should contact your Insurance Company and give them factual information. This may lead to increase in premium or rejection of policy, but it’s a better situation than getting rejected at the time when you are in the sky.
The Duty of disclosure when taking out insurance
Legally, it is your duty to give the company correct information rather than the company having to specifically ask you for the information. This is referred to as the duty of disclosure.
Companies ask a series of questions in an insurance application to obtain all relevant information. But it is your duty to give information is not limited to the questions ask you on the proposal form; you should tell the company everything.
Disclose your old Insurance Policy Details
You have probably done the same mistakes. If you were holding any endowment/money back policy, ULIP, Term Plan or any kind of health Insurance policy, it’s your duty to declare about your existing polices to the new company while taking new one. So, check with your insurance company about the declaration of old policies. If, you have not given that information at the time of taking the policy, better give them this information today.
You can see that in all these cases, the agents tried to fill up information without even discussing with you, but at some point of time it’s going to hurt you very badly.
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Suresh Kumar Narula

SEBI Investment Advisor, Founder & Principal Financial Planner at Prudent Financial Planners
Suresh K Narula is founder and Principal Financial Planner at Prudent Financial Planners. He has earned the professional CERITIFIED FINANCIAL PLANNER and got registered with SEBI as Investment Advisor. He writes on personal and financial planning articles and got published in Dainik Bhaskar, Business Bhaskar and The Financial Planner's Guild, India. He is also a member of Financial Planner's Guild India ( An association of practicing SEBI registered Investment advisers) to create awareness about Financial Planning in general public, promote professional excellence and ensure high quality practice standards. Suresh received his an from Himachal Pardesh University and an MFC from Punjab University, Chandigarh. He can be reached at
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