Who Is The Proposer In Insurance?
A proposer is a person who offers to enter into an insurance policy contract with an insurance company to insure himself or another individual whose life he has an insurable interest in and pays the policy's premium.
The proposer is the life insurance policyholder or owner. To maintain the policy, they pay premiums according to desired coverage.
As the sole owner of the life insurance policy, they can access any policy-related information and make any necessary modifications. In addition, section 80C of the Income Tax Act of India, 1969 allows them to claim tax benefits on the premiums paid.
Difference between Proposer and Life Assured
The proposer may purchase the coverage for themselves or another individual with an insurable interest. In the first scenario, the life assured is the proposer. In the second scenario, the insured becomes the policyholder. In both instances, the proposer is responsible for paying the premiums.
What does the proposer do?
- Complete the proposal form and acquire the insurance coverage from the insurer.
- Determine vital components of the life insurance policy, such as the sum assured, the coverage period, the premium payment schedule, etc.
- Determine whether the maturity or death benefit will be paid in lump sum or installments.
- Assign the beneficiaries who will receive the rewards upon the assured's demise.
- Change policy terms or beneficiaries.
- Insurance premiums must be paid.
What happens if the proposer of life insurance dies?
If the proposer is the life assured under the insurance, their designated beneficiaries will get the death benefit upon passing. If they are distinct individuals, ownership will be passed to the legal heir named in the proposer's will.
Can the proposer be changed?
The policy is the property of the proposer. Consequently, if the proposer and the life assured are distinct individuals, ownership can only be transferred upon the proposer's death. Typically, the proposer will have designated a new owner in his will before passing away.
To accomplish this, complete the insurer's "change in ownership" form and transfer the policy to the life assured. If the life assured is a minor, the newly appointed proposer will retain ownership of the insurance until the child reaches the age of majority.
There are lot of insurance companies in the market offering various insurance policies at different rates. you must compare before buying an insurance policy. search on finndit.com and get the details of insurance policy providers near you.
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