Commonly Asked Questions
Yes, there are. All premiums that you pay through your policy term qualify for a tax benefit under section 80C of the Income Tax Act, 1961. You can claim a deduction of up to Rs.1.5 lakh a financial year for the premium paid for yourself, your spouse, and your children.
Tax benefits are also applicable under section 10(10D) on maturity benefit in majority of the plans.
Life Insurance is a way of helping your family survive financially when you are not around. Almost all Life Insurance policies cover an unfortunate passing, an event or anything else that is included in your insurance policy. It is important that you read through the fine print and understand what your insurance policy includes and excludes before you buy it.
Life Insurance is a contract between you and a Life Insurance company wherein you agree to pay for a policy on a regular basis. The company in return pays a large sum of money to your nominated persons in the unfortunate event of your passing. Within these parameters, there are several types of Life Insurance available. Based on your specific needs and life goals, you can select the policy that best suits you.
There are several ways your employer-provided policy may not be enough for you. Some of them could be inadequate coverage for you and your family, a job change leading to loss of coverage, etc.
The IRDA Act, 1999, Section 14 regulates insurance companies with the aim to protect the interests of policyholders. It also regulates and oversees premium rates and terms, investment of policyholders’ funds, and establishes norms in order to maintain utmost security of all funds. The IRDA maintains utmost security of all funds. So, you can be rest assured that your money is in safe hands.
Even though both insurance brokers and insurance agents act as intermediaries between buyers and insurers, there is a slight difference between the two.
The primary difference between an insurance broker and an insurance agent is who each represents. A broker represents the insurance buyer and does not work for any company. Hence, brokers provide personalized advice on the best insurance options based on their clients’ needs.
On the other hand, an agent works on commission, and represents one or more insurance companies. They sell particular policies on behalf of those companies.
A businessman can buy a Life Insurance policy for himself, or for a key person in a business. This is known as Keyman insurance. The ones insured are usually the people without whom the company could sink.
Alternatively, a businessman can also get a Group Insurance for him and his employees. In this case, all the employees or the group serve as the beneficiaries of the policy.
Yes, there are special Life Insurance policies for individuals with lower incomes. Worry not, these policies are comparatively more affordable as they come with lower premium costs. Along with providing adequate coverage, these policies also come with flexible premium payment options in case you are unable to pay them regularly.
Yes, you are. Non-resident Indians (NRIs) and people of Indian origin (PIOs) are eligible for Life Insurance plans in India. The Foreign Exchange Management Act (FEMA) allows NRIs to buy any plan that protects them and their family whether he or she is currently residing in India or not.
Yes, of course. If you are differently abled or have a condition that is not life threatening, you can opt for Life Insurance policies. In the unfortunate event of you having a condition that is life threatening, an accidental death benefit is recommended.
Yes. All insurance companies are prepared for a situation wherein you may wish to make changes to your policy. It could be a change in beneficiaries, the amount of coverage, investment allocations, etc.
To begin with, you could start by reviewing your coverage. If you find it lacking, you can either ask your insurer to increase or decrease your protection as the case maybe, or cancel your policy altogether and look for another.
The process of buying a Life Insurance policy has been digitized to a very large extent. You can now look through websites, select a policy, sign and upload documents, pay your premiums, settle a claim, etc. online. However, there might be a part of the process that could involve some physical interaction, such as a medical examination. All of this could vary based on the company’s processes and the policy you choose.
Yes, there are slight differences between buying a policy online and offline. A policy bought online is much more convenient, as it helps save time and money for you as well as the advisor or broker. Apart from this, there isn’t really any difference.
People who aren’t very technologically savvy can opt to buy a Life Insurance policy offline. However, buying a policy completely offline could mean more physical visits, and hence might lead to a short convenience fee by your broker or advisor.
To ensure your family remains protected, you regularly pay a small premium for it. Staying invested for the policy term not only maintains the shield of protection, but it also ensures you get your maturity benefit by the end of it. So, as long as your policy is the most suited one for you, it is always best to stay invested to get the most out of your policy.
Yes. You can. It is in fact a good idea to get a loan against your Life Insurance policy, as these loans generally come with lower interest rates and are very secure. If you already have a Life Insurance policy in place, the process becomes much easier as there is less paperwork and scrutiny involved.
The general rule of thumb is to get a coverage amount of more than 10-20 times your annual income, depending on your age and the policy you are going for. As long as you are able to justify the total amount of coverage and your specific needs from each, it is okay to have multiple Life Insurance policies.
No, it doesn’t. Once you have purchased a Life Insurance policy, your premium amount doesn’t change unless there are taxation changes, i.e. GST slabs.
However, if you delay buying a Life Insurance policy, the premium amount you are liable to pay increases with age.
There are multiple ways you can pay your premiums. You can choose to pay them online, through UPI gateways, debit/credit card, e-wallets, internet banking or directly at the branch. Even though most insurance companies now come with majority of these options, it’s always best to check with them.
If you are unable to pay your premium on the date it is due, you enter the grace period. The grace period is generally a period of 15 days from the due date; you have to pay your premium within the grace period.
In case you do not pay your premium even during the grace period, your policy lapses.
There could be a few reasons for a Life Insurance company to refuse a claim request. Certain cases such as providing inaccurate information with respect to a medical condition, non-appointment of nominees, the cause of death not covered by the policy, non-disclosure of important information like smoking, and other such cases could lead to a Life Insurance company refusing to settle a death or maturity claim.
In the unfortunate event of the life insured passing away within the first two years of purchasing a policy, the Life Insurance company could conduct a very thorough background check. This is known as the contestability period.
There are primarily two ways you can receive a claim. You can either opt for a lump sum amount or in parts. You can choose to receive a claim in regular amounts for a fixed period, a fixed amount at regular intervals, or you can also convert into an annuity that pays you for the rest of your life. However, the claim settlement depends on the type of policy you go for.
A claim usually takes about 30 days to be processed by a Life Insurance company once all documents are in place. If all documents are in order, and it comes with no complications, the money can be sent in as little as 10 to 14 days.