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Buying a life insurance policy isn’t just paperwork—it’s a commitment to your loved ones' financial security. You are the one who creates and oversees the policy as a proposer, ensuring that your family is financially secure. In an insurance policy, the proposer is the person who applies for (and owns) the policy. The prosper is also the one responsible for paying premiums.

But what does it mean to be a proposer? In what ways may your role influence the insured's future? Let's have a look at it.

Your Key Responsibilities as a Proposer

Being a proposer puts you in control of the policy. Here's how your participation makes all the difference, from choosing the best plan to maintaining it:

Starting the Insurance Policy

The first step is choosing the appropriate insurance plan based on the insured's needs. When purchasing a life insurance policy for your parents, spouse, or yourself, you will have to make important choices like:

• Selecting the insurance type (endowment, ULIP, term, etc.)
• Choosing the insurance term and amount guaranteed.
• Choosing extra riders (such as accidental death or critical sickness coverage).

Providing Accurate Information

It is your duty as the proposer to share all necessary data about yourself and the insured. This includes:

• Individual information (name, age, profession, earnings, etc.)
• Health background and current medical conditions.
• Lifestyle choices (drinking, smoking, etc.)

You must give proper information because any inaccurate or missing information may result in the claim being rejected.

For example, suppose you are buying a life insurance policy for your parents and don’t provide their present medical condition. In that case, it will lead to the insurance provider rejecting your claim based on non-disclosure.

Making Timely Premium Payments

Your responsibilities don't stop when the insurance policy is issued. To maintain the life insurance policy's validity, you are responsible as the proposer to ensure premiums are paid on time. This includes:

• Selecting an appropriate payment schedule (monthly, quarterly, or yearly).
• Using auto-debit features to prevent late payments.
• Monitoring policy renewal dates to prevent a policy lapse.

The life insurance policy may lapse, and the insured person will no longer be covered if a payment is missed. To prevent this, you should constantly review your payment schedules and create reminders for due dates.

Updating the Policy

You have the authority to modify the life insurance as needed since your family's needs will change over time. Adjust your life insurance policy to match your life stage by updating nominees, adding riders, or extending coverage.

For example, if you first name your spouse as the nominee but later want your child to receive the funds, you must update the nominee details.

Nominating the Right Beneficiary

As a proposer, the most important responsibility is to select the nominee who would get the life insurance benefits in case of an unexpected situation.

When making this choice, you should consider the nominee's reliance on you for financial support. Also, their capacity to handle the money responsibly. And any family-related or legal issues that might impact the claim procedure.

You also have the option to modify your nominee if circumstances change over time. This ensures that the deserving individual receives benefits.

You Can Make Modifications or Even Cancel the Policy

If necessary, you can change or even cancel the life insurance coverage as a proposer. You can adjust coverage, add riders, or update details if your financial goals change or you find a better plan.

Most life insurance companies allow changes via a straightforward request procedure, which often requires minimal documentation.

Depending on the kind of life insurance, you can get a surrender value if you want to cancel the insurance policy. However, it's important to consider all options before deciding because early cancellation might result in financial loss.

Proposer vs. Insured: The Difference Between Both

Feature	Proposer (You)	Insured (Person Covered)
Who are they?	The person who buys and manages the insurance policy.	The person whose life, health or property is covered by the insurance policy.
Responsibilities	Pays premiums, submits documents and information, and maintains the policy.	No direct responsibility unless also the proposer.
Claim Benefits	Does not receive benefits unless also a nominee.	The insurance payout is provided for their covered losses.
Example	You buy a policy for your spouse or child,	Your spouse/child who is insured.

Final Takeaway

A life insurance policy is a promise that you will take care of your loved ones even when you are not there. Every choice, nominee, coverage, or personal detail shapes your policy’s effectiveness.

The best thing about a life insurance policy is that you have complete control. Whether you need to modify, upgrade, or even step away, you can do what’s best for your family as per your situation.

At the end of the day, a life insurance policy isn’t just about protecting your family. It’s about providing certainty in an uncertain world.