Life Insurance

Life Insurance

FAQs

Life Insurance

Life Insurance:

Life Insurance in simple words is the insurance of One’s life. In today’s chaotic world the risks to human lives are ever-increasing and therefore it is of paramount importance that one insures one’s life. Life insurance ensures that your family is financially supported or taken care of in case of your absence. In addition to securing your family life insurance also helps in tax saving, financial and retirement planning and covering your liablities.

Can NRI take life insurance?

NRIs can also take life insurance if the insurance company’s terms and conditions are fulfilled.

Various Types Of Life Insurance:

Term Plan

When there is an earner person in the house and he dies suddenly for some reason, all the members of the house have to face financial problems. As a result, the financial balance of the family is disturbed and so many of the dreams of the family about money, remain dreams.

Keeping in mind that no family has to face such a crisis time, the insurance company offers a term plan in which you can take a large amount of insurance with a small premium. The amount of this insurance can be a great help in times of sudden crisis, so everyone must take a term plan.

In the event of death of the life insured, the sum assured (death benefit) will be given to the nominee of life insured and the policy shall be terminated once the death benefit is paid.

Increasing sum insured option

You can choose to enhance/increase your sum assured at the time of inception and every year your sum assured will increase by fixed percentage of the original sum assured without any increase in your premium amount.
In the event of death of the insured, the increased insurance (death benefit) for that year will be given to the nominee of life insured and the policy shall be terminated once the death benefit is paid.

Decreasing sum insured option

You can choose to decreasing your sum assured at the time of inception and your sum assured will decrease by fixed percentage for fixed year of the original sum assured without any increase in your premium amount.
In the event of death of the life insured, the decreased sum assured (death benefit) for that year will be given to the nominee of life insured and the policy shall be terminated once the death benefit is paid.

Income option

This option provides you with a life cover for the chosen policy term and regular monthly income from age 60 onwards along with a lump sum payout on maturity.

Monthly income of 0.1% of the basic sum assured shall be paid in arrears, starting from the policy anniversary following your 60th birthday and continues until your death or policy maturity, whichever occurs earlier.
The Survival Benefits already paid out shall be deducted from the death benefit payable to the Nominee and the policy shall be terminated once the death benefit is paid.

Return of Premium Option

In the event of death of the life insured, the sum assured (death benefit) will be given to the nominee of life insured or On survival of the Life Assured till the end of the policy term, for a fully paid policy, Total premiums paid (excluding tax) is payable as Maturity Benefit.

Life Long Term Plan Option

Whole life insurance is a specifically designed life insurance plan which aims to provide whole life cover to the insured so that they can live a financially secure life and create a financial cushion for the future in case of death of life insured.
The policy provides insurance coverage to the life insured for the complete life. Upon death of a life insured. In the event of the uncertain demise of the life insured during the policy term, the sum assured (death benefit) is paid to the nominee and the policy shall be terminated once the death benefit is paid.

FAQs

What Is Insurance? And Main Types of Insurance ?

Insurance is a means of protection from unforeseen financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss and secure from financial loss.

An entity that provides insurance is known as an insurer, insurance company, insurance carrier or underwriter. A person or entity who buys insurance is known as an insured or as a policyholder. The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer’s promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and usually involves something in which the insured has an insurable interest established by ownership, possession, or pre-existing relationship.

There are 4 broad terms in which
1. Life Insurance
2. General Insurance
3. Health Insurance
4. Pension Insurance

What is Life insurance ?

Life insurance can provide tension free that your beneficiaries will be provided for after you die. Learn more about selecting the right policy for you, and how some policies can even serve as retirement savings. There are 4 types of life insurance,
1) Term Insurance
2) Traditional / Endowment Insurance
3) ULIP
4) Guaranteed Income Insurance

What should I look for before I decide to buy a policy ?

You must check and see whether or not there is availability of guarantee of return, what the lock in period is, details of premium to be paid, what would be implications of premium default, what the revival conditions are what the policy terms are, what are the charges that would be deducted, would loan be available etc.

What are special medical reports required to be submitted in Life insurance ?

In case of certain proposals, depending upon the age of entry, age at maturity, sum assured, family history, and personal history, special medical reports may be necessary for consideration of risk. E.g. if the proposer is overweight, special reports like Electro Cardiogram, Glucose Tolerance test, etc could be required, while for underweight proposers, an X-ray of the chest and lungs with reports could be required.