Role of the Proposer in Life Insurance Policies

In life insurance, the proposer plays a pivotal role in initiating and maintaining the policy. While the insured person is the one whose life is covered, the proposer is often the individual responsible for applying, paying premiums, and ensuring that the policy stays active. Understanding the role of the proposer in life insurance policies is essential to ensure smooth claim processing and avoid complications related to policy lapses. This article delves into the responsibilities and importance of the proposer in life insurance and what happens when a policy lapses.

Role of a proposer in life insurance policy

The proposer is the individual who initiates the life insurance policy and bears key responsibilities in ensuring the policy's smooth functioning. Here’s a detailed breakdown of the role:

• Application of the policy: The proposer is responsible for filling out and submitting the life insurance application. They provide necessary details about the insured and themselves, ensuring accurate information is submitted.
• Payment of premiums: The proposer is obligated to ensure that all premiums are paid on time. Missing premium payments may result in a policy lapse, affecting the coverage.
• Nomination of beneficiaries: The proposer nominates the beneficiaries who will receive the death benefit in the event of the insured’s death. This is a crucial step to ensure the right individuals benefit from the policy.
• Ensuring policy compliance: It is the proposer’s duty to ensure that all conditions of the policy are met, such as submitting medical reports, keeping track of documentation, and updating the insurer on any significant changes related to the insured’s health.
• Revival of lapsed policy: If the policy lapses due to non-payment, the proposer has the responsibility to take steps to revive the policy and submit the required documents for reactivation.

• Policy initiation: The proposer is responsible for applying for and initiating the life insurance policy.
• Premium payments: Timely premium payments are the proposer’s responsibility to avoid policy lapses.
• Nomination of beneficiaries: Proposers ensure the right people are nominated to receive the benefits.
• Documentation and compliance: Ensuring that all policy conditions and documentation are fulfilled rests with the proposer.
• Revival of lapsed policies: Proposers play a key role in reviving a policy if it lapses, ensuring continuous coverage.

The proposer plays a vital role in the smooth functioning of life insurance policies, from ensuring timely premium payments to nominating beneficiaries and reviving lapsed policies. Understanding the responsibilities of the proposer helps in preventing complications related to policy management and claims. Whether you're a proposer or the insured, knowing these roles and responsibilities ensures the life insurance policy remains active and beneficial when needed the most.