Max Life Insurance MWPA addition rejected even after lapse from their end

09 Jun, 2022 | by Jaypal Arora

Hi,

I bought a Max Life Term Insurance policy via Axis Bank in March 2022. The payment was made at end of Feb but the policy was issued on 29th March 2022. The form was filled online.

After making the payment, I asked them to add MWPA to my policy, and the payout mode to lump sump + monthly on 6th April 2022. After multiple follow-ups, they shared the form with me for MWPA on 20th, and 25th April 2022.

I shared the filled-up form with them on 5th Jun 2022.

Now, I got an email today saying that the changes in policy are not possible because the free look period for the policy got over on 27th April 2022. I wasn't aware of the timeline for this and neither did they share it.

What do I do now?

a) Shall I cancel my policy and get a new one? What happens to the paid premium?

b) Is there any mechanism to get this done in the policy?

c) any other option?

Please guide. Looking forward for the assistance at the earlier.

Regards,

Jay

Term Life Insurance

2 Answer

Post

13 Jun, 2022

Rohit Dhingra

4.5

MBA | 5 years experience

Dear Jay,

Option to add MWPA is at the inception stage. Since your policy is issued there is nothing much one could do now. It is not clear where you made the request for change in the free look period - with Axis Bank or with Max Life.

1) It is upto you to you cancel or continue with the policy. Incase you cancel your policy insurer will return only part of the premium.The amount of percentage they will be mentioned in your policy wording

2) MWPA can only be added at inception stage.

3) Your Options are you can either continue with the policy or you could cancel and bear the cost towards cancellation.

I would have hope had you tried taking a policy from someone credible. The Banks RMs focus is to get the premium in. They are least bothered about servicing aspects.

Regards

Rohit Dhingra

1 Comments

13 Jun, 2022

Jaypal Arora

I requested this to Max Life directly. I checked my first email, I had asked them for this right on 1st March 2022 on receiving the proposal form copy. They shared the MWPA form on 20th April 2022 for which I raised a query. They shared the form again on 25th April 2022 after resolving my query. Nowhere do they mention the last date for it.

Is MWPA that critical? If yes, then I can cancel the policy and get a new one. It has not been that long just 4-5 months. Please advice.

14 Jun, 2022

Shailesh Kumar

CEO, Insurance Samadhan

Dear Jay

What Rohit meant that MWPA is done at inception means that it is part of Proposal form under objective of insurance.

Through MWPA , ypu create an estate for sole benefit of wife and children. You forego your right. Under any insolvency , this asset class can not be touched by legal authorities .

Hence it's criticality will depend on your situation.

I can comment on the basis of your profile , premoum paid and sum assured applied . You can also get almost similar benefit by assigning the policy in name of your wife .

Hope this clarifies

Shailesh Kumar

Insurance Samadhan

1 Comments

14 Jun, 2022

Jaypal Arora

I know the benefits of MWPA that's why I was chasing them to add it.

About my situation, I'm not in bad debt. I only have loans of around 1 Cr. for the under-construction properties in Delhi/NCR. Roughly, 20% have been disbursed. This will be fully disbursed in the next 3 years.

I'm a corporate employee in a metro city. The sum assured is 5.5cr increasing by 5% every year. My premium is around Rs. 14.5K per month. I have also taken the critical illness and disability rider, and accidental death riders to the max possible amount.

If I assign the policy in her name will these riders still be applicable to me or her?

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Max Life Insurance MWPA addition rejected even after lapse from their end

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