Consideration of the proposal is postponed

To accept / reject a proposal is a right of the insurer. The insurer may accept it on standard terms or on terms other than those proposed. The insurance company may not accept a proposal now or it may postpone the consideration of the proposal to a future date. Postponement of consideration is done when passage of time reduces risk on a life. Some illnesses may have a debilitating effect on health of the proposer for some time or some illnesses may make a come back within a certain period of time. To skip this period means making an automatic reduction in risk on the life. Take the case of a person who suffered from jaundice. Some insurers postpone his proposal for six months. In another case a pregnant lady proposes for life cover in later stages of pregnancy. Generally insurers in India postpone the proposal to a date three to six months after delivery. When proposal is considered after postponement sometimes the age near birthday of the proposer may go up by one year. In simple terms postponement of consideration of proposal is a self protecting mechanism adopted by life insurers.