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.
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A policy document mentions the following things in it:
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Policyholder’s proposal form mentioning the coverage and required premiums
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Policy schedule mentioning the payment frequencies, payment periods along with policy revision details
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The first premium receipt issued at the policy inception
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Extensive details of what is covered and what is not covered and other benefits of the policy.
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Initial medical test report if applicable. This mentions pre-existing medical conditions.
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Beneficiary details including the personal information of nominee/ nominees/ appointees, etc.
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Grace period details and non-payment actions
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Policy terms along with maturity date
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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.
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