As an insurance policy holder, it’s important to make sure that you understand your rights and responsibilities to take full control over your insurance protection coverage and investments.
But before that, you must first understand the basic life insurance roles. If you own an insurance contract or policy, you are a policy holder or a policy owner. As a policy holder, you may also be the person covered by the policy – referred to as the insured. You may also own a policy and name another person as the insured. The beneficiary, on the other hand, is the person who collects the insurance money when the insured person dies.
As an informed policy holder, you should always know your rights regarding your insurance protection coverage and claims. This will help you make proper decisions and strategies surround your life protection benefits and investment strategies.
What are your rights as an insurance policy holder?
- Right to Cancel the Policy
Within 15 days after receiving the policy document, you have the right to cancel your life insurance policy. If you are dissatisfied with the policy or disagree with any of the terms, you can return the policy stating the reasons for objection. It must be signed and sent directly to the insurance company.
After which, the premium you paid will be refunded, and the policy will be cancelled.
- Right to Withdraw a Portion of the Cash Value
Just in case you need extra money, you can withdraw a partial amount of the cash value from your life protection policy such as a ULIP, VUL, or other life insurance plans with investments. This may be done while the policy is in effect.
The amount to be withdrawn needs to be specified in your withdrawal request, as well as the investment funds from which the partial withdrawal will be made.
- Right to Switch Funds
As a policy holder, you have the control to choose which fund to put your money. Given that, you are allowed to switch units of one investment fund allocated in your life protection or insurance policy to another investment fund such as a ULIP, VUL, or other life insurance policies with investments.
Take note that the amount to be switched must not be subject to a minimum amount and other administrative rules and fees.
- Right to Decide or Change the Beneficiaries
In the beginning, you are free to decide who the beneficiary/ies of the life insurance policy is/are. If you will have a change of mind, you can replace your beneficiary/ies while the policy is in effect.
If the beneficiary is non-revocable, then you need a signed consent form from the said beneficiary. In the case of the non-revocable beneficiary’s death, you have the right to name a new beneficiary.
- Right to Surrender the Policy After the Lock-In Period
You have the right to surrender the insurance policy at any time after the end of the prescribed lock-in period from the date of commencement of the policy.
When you surrender the policy, you will receive and fully withdraw the fund value of your life protection policy. Of course, this would mean termination of your life protection. Most insurance protection policies cannot be reinstated after its surrender. So, before you surrender the policy, be sure that you understand the consequences.
- Right to Request for Modifications
To accommodate your evolving lifestyle, career changes, family milestones, and individual financial situation, you can request for modifications in your insurance policy. Such modifications may include:
- Mode of Payment of Premium
- Term of the Policy
- Reduction or Increase of the Coverage or Sum Assured
- Premium Redirection
- Right to Transfer Ownership
You are free to transfer the ownership of an insurance policy to another person or entity. Such can be done to redirect the premium and save on estate taxes in the event of the policy holder’s death.
Transfer of ownership between spouses is not permitted by Philippine law.
If you want to know more about your rights as a life insurance policy holder, talk to a BPI AIA Bancassurance Sales Executive at any of the 800 BPI branches nationwide.