Deutsche Bank Shares Rise After Shakeup

ENLARGE Deutsche Bank managers held meetings and conference calls with employees in London, New York and Frankfurt, above. Photo: Martin Leissl/Bloomberg News By Jenny Strasburg and Jenny Strasburg The Wall Street Journal CANCEL Biography @jennystrasburg Google+ [email protected] Juliet Samuel Juliet Samuel The Wall Street Journal CANCEL Biography @CitySamuel [email protected] Oct. 19, 2015 1:46 p.m. ET 0 COMMENTS Deutsche Bank AG DB 2.48 % employees and investors on Monday positively graded the lender’s management and organizational overhaul, saying they welcomed clarity on how businesses will be judged going forward. They also said next week will be crucial to understanding Deutsche Bank’s

What is Reinstating a Surrendered Policy?

If you are not happy with current insurance policies or for any reason you are not able to continue your policy, policy holder has the option to surrender it to the insurance company and ask for the settlement. Normally policy holder will not get the full amount when policy holder surrenders it before the maturity period. Do you know that even one can continue a policy which is surrendered within last six months?. This process is known as reinstating a insurance policy. Unfortunately, awareness on this process is very low among the insurance policy holders in India. Here in this article, I will be writing important aspects on reinstating a policy and when it can be reinstated. This may not be a immediate helpful idea for you, but knowing this will help you when you are in the same situation. If you have any questions, please write it in the comments section.

Please note that reviving lapsed policy is different from that of reinstating. Lapsing happens when you are not paying the premiums after the grace period and policy gets lapsed. Then policy holder has to revive the policy and continue paying the premiums. But, this article explains how to deal with the surrendered policy when policy holder changes his mind to pursue paying with the same policy.

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Auto Reinstatement

In some situations, reinstatement of a policy is automatic without the request.

  • When the policy holder applied for surrender and submitted the surrender discharge voucher to the insurance company along with the insurance policy bond. But, the policy holder is died before the actual payment is made for the surrender value.
  • When surrender value is sent to the policy holder. But, he died before it reaches to him or en cash the cheque in his bank account.

In the above cases, it is the job of legal heir to bring this to the insurer’s attention. Legal heir has to get the document of policy holder’s death and submit to the insurance company. After receiving the details from the legal heirs, insurer will process their application for reinstatement of the policy and issue a fresh cheque in the name of legal heirs. Basically, here reinstatement happens not for continuing the policy, it is only for the settlement (actually insurer will pay for the sum insured in case of death)  .

Reinstatement On Request

When a policy holder surrender’s his policy and received the amount for his policy. If he feels that the amount he received for the surrender is less than what he expected or he changes his mind to continue the policy, then policy holder has the option to reinstatement of his policy within 6 months from the surrender date. But, however the period can be different purely depends on the insurance company.

Once insurer received the application, they will check the reasons why policy holder wants to reinstate the policy. Also they will verify if policy holder has any health problem in the recent days. If the reasons are genuine and insurer accepts the application, cancellation of the policy will be void and company will issue a fresh policy document to the policy holder.

However, not all the policies surrendered are allowed to reinstate in later period. Unit linked plans, annuity policies and health insurance policies are normally not reinstated. This is very useful who has changed his plans after the surrender of the policy.

That’s it…

This article is useful for knowing this fact, many of us finding it difficult if they fall under the above situations. If any of your friends facing the similar issues, please share this information and explain them how to handle the situation. We are opting for insurance only to protect our family, if that is the case the you must be well knowledge on the subject. If you have any questions, please write it in the comments section.

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