In order to obtain protection under a life insurance plan an individual must make an application to the insurance company. This application is sometimes known as a proposal.
Each insurance company will have their own procedures in relation to applications for cover, all of which are designed to ensure that the individual, or individuals, asking for coverage is insurable. Understanding whether an applicant is insurable, and the terms on which coverage is provided, is extremely important as a Hong Kong life insurance plan cannot be changed once it is put into force.
A life insurance application is the tool the insurance companies use in order to determine how coverage if provided to an individual applicant, if coverage is even offered at all.
Three very important guidelines exist when applying for life insurance coverage:
1. Answer all questions truthfully, providing explanations where needed.
2. Complete the form personally if you are able to do so. If someone helps you to complete your application make sure the answers provided are yours and not theirs.
3. Do not alter or amend the application. Any changes you make to your answers must be obvious and easily interpreted; signing and dating changes is also important.
In addition to ensuring that you are able to comply with the above guidelines all life insurance applicants should pay particular attention to ensuring accuracy in the following areas.
Should the insurance company require additional documents it is important that these are also provided, as completely and accurately as possible.
The Customer Protection Declaration is a key regulation in the purchase of life insurance designed to protect consumers against nefarious sales tactics.
Switching to a new life insurance plan once a policy is already in force can have negative outcomes, at least in the short term. A vital aspect of a life insurance application is a declaration by the applicant that they have been properly advised and are aware of all potential outcomes of changing plan.
For more information please see Hong Kong Life Insurance policy switching.
If you would like receive assistance in completing a life insurance application, please contact the life insurance experts a CCW Global. Our advisors can help you to complete your insurance proposal forms accurately and within the guidelines of the insurance companies.
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