Policy Document

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Definition

Under life insurance, a policy document is a hardcopy or softcopy of the policy contract between the life insured and the insurance company mentioning every minute detail of the policy.

Description:

A policy document is a detailed document that contains all the information about the insurance contract. It is the formal evidence of the legal contract that mentions all the terms and conditions of the insurance.

• A policy document mentions the following things in it:

• Policyholder’s proposal form mentioning the coverage and required premiums

• Policy schedule mentioning the payment frequencies, payment periods along with policy revision details

• The first premium receipt issued at the policy inception

• Extensive details of what is covered and what is not covered and other benefits of the policy.

• Initial medical test report if applicable. This mentions pre-existing medical conditions.

• Beneficiary details including the personal information of nominee/ nominees/ appointees, etc.

• Grace period details and non-payment actions

• Policy terms along with maturity date

• Premium waiver clause, etc.

Example:

Mayank received a policy document after he purchased a term plan from REC Life Insurance Company Limited. The policy document had all the details about the premium, insured, duration of the policy, sum assured and other terms and conditions.