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Term Insurance

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What is Term Insurance?

Term Insurance is the cheapest form of life insurance that provides full financial coverage for a defined period of time. In the event of any unforeseen situation the policyholder’s family is taken care of and financial stability is ensured. Death benefit is payable to the nominee who is usually a family member. You can choose to get a lumpsum amount or combination of lumpsum and monthly amount as per your requirement. Some companies also cover permanent or partial disability wherein the policyholder’s regular income is disrupted.

 

Term Insurance Buying Guide Infographic

Note: In case of survival of the policyholder the coverage at the earlier rate of premiums is not guaranteed after the expiry of the policy. The buyer has to either obtain extended coverage with different payment condition or forgo the coverage entirely.

 

Why term insurance plan

Why You Should Buy Term Insurance?

In the event of an unforeseen situation who will take care of your liabilities and responsibilities? It is here that the importance of term insurance is felt. The lumpsum that your family will get as death benefit can bring financial stability and pay off the liabilities. It is the real support that your family can have if something happens to you. Term insurance is important for everyone and especially more for the bread earner of the family.

“Family is not an important thing, it’s everything."– Michael J. Fox

Don’t be short-sighted. Get Term Insurance and secure your family’s future. Save their harassment by financially securing them through a term plan.

  • Get lumpsum amount in the event sudden death

  • See off all your loans and liabilities

  • Provide money so that your family continues to live with pride

  • Term Insurance also takes care of family in case of your disability or critical illness:

  • Provides supplementary income in case of loss of income due to accidental disability or illness

  • Get lumpsum amount if diagnosed with critical illness

  • Additional sum insured in case of accidental death

Term Insurance Eligibility

Eligibility Criteria for Buying Term Insurance Plans

Criteria

Minimum

Maximum

Entry Age

18 years

65 years

Policy Term

5years

30-55 years

Maturity Age

           -

75 years to Whole Life

Annual Premium

INR 2000

Based on Sum Assured and age of applicant

 

Premium Payment Mode: Single | Regular - Yearly, half-yearly, quarterly, and monthly.

Term insurance offers flexible plan options to suit the need of every individual. You can choose:

  • The amount of preferred sum assured

  • Premium payment option which can be either one-time or regular.

  • Term of the policy

  • Add on protection

Term Insurance Key Features

Key Features of Term Life Insurance Plans

Term Insurance Plans are specifically designed to secure your family's core financial needs in case of death or uncertainty. According to the plan, family/dependents of the life insured is/are eligible for a lump sum amount in case of death or critical illness, if applied for, of the life insured and during the term of the policy. Such an insurance plan can help your family to have sound financial independence, even if you are not around.

  • Policy Term: The minimum policy term is 5 years, with the maximum varying from 25 years to whole life span for equated monthly premium payments. For single premium payment policies, the policy term is 5 to 15 years. People can opt for the term plan period they think works for them. Experts suggest going for a longer period term plan as the premium amount generally gets locked and the insured party gets to pay the same premium over the tenure of the term plan for the same amount of cover. 

  • Plan Choice:Term insurance provides flexibility in terms of choosing the plan on single life basis or joint life basis. Single life means that the term plan will only provide cover for the life of the insured party who is generally the breadwinner of the family. A joint life term plan, on the other hand, covers the life of both the husband and the wife through a single term plan. Most term insurance plans offer the term plan on a first claim basis. This means that the term plan pays the sum insured on the expiry of either of the two insured people. There are also other term plans that pay on the death of both the insured persons. 

  • Entry Age:To be eligible for term insurance plans, the minimum age of entry is 18 years, with a maximum age limit of 65 years with optional add on benefits. The premium of the term plan increases with age and people who are looking for a term policy for a longer period should opt for the best term insurance plan when they are relatively young. This will ensure they have a locked-in premium amount that does not change much most of these term plans.

  • Maturity Age: The best term insurance plans are those that offer cover well into the lifetime of the insured. Most term plans offer cover the insured to up to 65-70 years of age. Term plans that have a higher maturity age may also charge a higher premium rate as they offer a term insurance cover against life risks for a longer tenure. Also, the risks increase with age and this is reflected in the premium amount. 

  • Survival Benefits: A standard term plan does not have any survival benefits. However, the demand from investors has meant that various companies have opted to launch term insurance plans with survival benefits. Called Term Return of Premium (TROP) plans, the term plan refunds the premium at the end of the term plan tenure if the insured person survives the period. The TROP plan is becoming popular with people who are looking for savings as well as insurance with their term plan. This term life insurance plan has a higher premium than the standard term plan but has the advantage of assurance that the policyholder will get back the premium he or she paid to the life insurance company for the cover. Investors should read the insurance terms and conditions carefully to ensure they know the amount of money they will get back as survival benefits. Check out the term insurance plan that meets your needs with our term plan comparison.

  • Death Benefits:On death of life assured during the term of the plan, the nominee or assignee, in case where the policy has been assigned to someone else, will receive the total/ assigned death benefit chosen at the time of commencement. Depending on the type of plan, the death benefit may stay the same over the whole tenure of the plan (standard term plans), decrease (decreasing term plans) or increase (increasing term plans). The insurers provide various options of payment for the termplan. These include a lump sum payment, lump sum payment plus an annuity that may be monthly, quarterly or yearly, or simply annuities that are spread over the agreed number of years.

  • Maturity Benefits: Term insurance plans don't come with any survival or maturity benefits. If one wants maturity benefits, then a TROP (Term Return of Premium) plan is suggested.Read more about TROP Plan here.

  • Additional Optional Benefits: Additional optional benefits such as critical illness and accidental death/ disability or Accelerated Sum Assured are also available. The benefits can be added to the term plan by paying an additional premium amount. The best term plan in India is the one that offers these riders at a comparatively lower price than opting for such cover through individual plans. Choose the additional optional benefits for your term insurance plan with our website. Use the term plan comparison features to shortlist the additional benefits you need.

 Term Insurance Tax Benefits Icon

Tax Benefits of Term Life Insurance

Term life insurance plans come with excellent tax benefits. You can avail lucrative tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act, 1961. Additionally, the premiums paid for the Critical Illness Benefit also qualifies for a deduction under Section 80D.

Note: Tax benefits are subject to changes in tax laws. Please consult your tax advisor for details.

Term Insurance India - Types of Plans

There are a number of term insurance plans available in the market from various insurance companies in India. All of these companies offer both types of online and offline term life insurance with each term policy having its own set of specific features that make it the best term insurance plan in the market. To understand these plans we need to look at them a bit more in depth.

 

Standard Term Life Insurance Plans
A standard life insurance term plan is one where the insured person gets a cover against various risks against payment of a certain premium amount. The most common term plan and generally also considered the best term insurance plan is the one that charges a yearly premium for an annual cover. The cover ends every year and the insured individual has the options to continue with the cover with the old insurance company, shift to a new plan with the same insurer or opt for a new plan offered by a different company.

 

The insurance companies also offer term insurance plans that last for a few years and can have different premium paying tenures that suit the individual. Some termplans may offer the option to pay the premium at the beginning of the multi-year term policy, for instance, while others may offer a premium payment period of only a few years while the policy lasts well into the future.

 

Most of these term plans are now available online, though companies also offer offline termplans. Though most of the features and benefits remain the same, an online terms plan, as a rule, is priced lower than an offline term policy. The reasons for this are the low cost of customer acquisition, less paperwork, lower dependence on the insurer’s own distribution network, etc. that lowers the overall cost of the plan for the insurer and the benefits of which are passed on to the individual.

 

Term Return of Premium (TROP) Plans
A term return of premium policy is a term insurance plan that refunds the premium paid for the cover in case the insured party survives the policy period. These plans are increasingly becoming popular as the policyholder gets the money they have invested in the term insurance plan at the end of the policy period. A term plan like a TROP charges a higher premium than a standard term policy as the insurance company has to provide dual benefits under these policies. In other words, the insured is able to benefit from both life insurance cover and return of premium in such a term plan unlike the standard policy where the insurer does not get back any of the premium they have paid during the life of the term policy.

 

Most of the insurance companies that provide TROP term plans have launched a range of payment options also for these plans. For instance, some term policy insurers may offer plans that require the policyholder to pay the premium one time only at the beginning of the term plan. Such a term policy may is generally of a longer period such as 20 or 30 years so that the policyholder can benefit from parting away with such a large sum of money at the start of the policy. There are other options where the premium needs to be paid only for a certain number of years over the tenure of the term plan. For instance, the policyholder may have to pay the premium for only 10 or 11 years for a (say) 20 or 30 years old term policy. Most of these term insurance plans, however, ask the premium to be paid each year over the life of the term plan.

 

These termplans also give the insured the option to add on riders that they feel are essential. These riders add to the premium of such a term plan just like any other standard life insurance term policy.

 

Group Term Insurance Plans
Group term insurance policies are term insurance plans that are specially designed for businesses, companies, societies, associations or large families and provide term plan insurance cover for all the members of the group. These policies provide the same set of benefits that an individual term plan offers but the overall coverage is generally more in terms of illnesses or other factors that are generally excluded in the individual policies. Most of these policies are offline as each policy is generally customised to suit the needs of the group taking the policy. 

 

Laws and regulations in India mandate that certain types of industries or businesses should have a life insurance policy for their workers. This is essential as it covers the workers against any incidents that may occur in the workplace or for any loss of income that they may suffer due to them being injured or not able to work for a longer period of time. These life insurance policies also offer the families a death benefit in case the unfortunate comes to pass. All these benefits can be easily availed by a company, a business or any group through term insurance plans. Since the company does not have to worry about the returns from the term policy at the end of its tenure, a term plan offers the organisation a better and cheaper alternative than the traditional life insurance plans. 

 

The term plan insurance companies also offer policies that are specifically designed for certain professions or industries. These term policies provide insurance against general risks as well as specific risks that are particular to that particular profession. For instance, the risks faced by truck drivers is different from those faced by workers in a mine. The term policy for transportation companies will insure against specific threats faced by the drivers while those for the miners will relate to risks that these professionals face while working underground. In addition to these specific termplans, the insurers also provide general plans that any group can subscribe to for its employees or members. Companies and businesses looking for a term policy for the organisation or a specific department should compare the various group policies on offer by the term plan insurance companies and take the term plan that suits them best.

 

Term Insurance Plans by Number of Years
Insurance companies also provide term insurance plans for a specific number of years. These term plans are called level term plans in industry parlance as the nominees receive the same level of death benefit if the worst comes to pass during the tenure of the term policy. However, some companies also provide decreasing term options. One example is SBI Life - Saral Shield term plan that offers level term assurance, decreasing term assurance (loan payment) and decreasing term assurance (family income protection) options. 

 

The amount of premium to be paid each year in these term plans generally remains the same throughout the whole tenure of the policy. In some instances, term insurance companies may increase the premium every few years for some longer term insurance plans. These term life insurance plans can range from 5 years term plans to 30 years term insurance plans, in most cases. The policyholder can further renew the plan for an additional period of the same tenure, subject to him or her meeting the conditions laid down under the plan for renewing the term policy. The level term insurance plans do not generically provide a maturity benefit as the focus is to keep the premium low.

 

5 Year Term Insurance Plans: As the name suggests, a 5 year term insurance plan provides a term policy life cover for five years. The premium remains the same throughout the period of five years and the term insurance buyers have the option to pay the premium monthly, quarterly, half-yearly or annually. Some term insurance plans may provide a higher death benefit for annual premium payment than for say the other periods, say a month. Moreover, the annual premium works out to be cheaper than the monthly premium for the term policy.

 

In most cases, the annual premium payment is the cheapest option while the monthly payment option is the highest. The half yearly premium payments together are lesser than the quarterly ones, which are in turn lesser than the total of the monthly payment amounts for the term insurance plans.

 

The 5 year term plan is suitable for:

  • Individuals who have short-term financial pressures, whether it is from loans, child education, purchase of a home and so on, and need a back-up in case the worst happens.

  • People who are retired as the policy will give them additional cover for five more years. Since most term plan insurance companies do not provide term plans with maximum entry age beyond 60 years, a 5 year term insurance plan will ensure they get a cover without having to pay a hefty premium.

  • Citizens with low income can easily choose this policy as the premium levels are quite low

 

10 Year Term Insurance Plans: A 10 year term insurance plan is a standard term policy that can be taken for a decade. Most of the companies providing term insurance for 10 years have higher restrictions with respect to entry and renewal due to the longer period. Also, the premium for the policies is slightly higher than that for the 5 year term plans. The reason is the longer period of insurance cover.

 

As with other such types of term plans, the premium for the policy generally remains the same throughout the period of the plan. The term plan insurance companies offer different premium payment options from single premiums to annual, half-yearly, quarterly and monthly premium amounts. The single premium amount is lower than the total of the annual premiums, which in turn is lower than the total of the premiums paid through the other modes of payment. As mentioned earlier, the total of the monthly premium amounts is generally the highest.

 

Some companies may put a restriction on the maximum age at maturity. This means that if the maximum age at maturity for the term policy is say 70 years then an individual cannot but the policy beyond the age of 60 years.

 

A 10 year term plan is ideal for:

  • People looking for a term policy for a longer period as it gives him or her more awareness and control of the financial future of the family and loved ones in case something happens to him or her.

  • Individuals who have financial responsibilities stretching over the ten years and need a plan that will take care of their family in case the unfortunate comes to pass.

  • People who are nearing the retirement years and need a policy that will cover them until they are in their late 60s.


20 Year Term Insurance Plans: The 20 years term insurance plans provide a life cover for a period of one score years. The premium for these plans is generally higher than that for say 10, 15 or 18 years. The reason is that the premium stays stable throughout the policy period and may have only marginal increases, if at all. In practical terms it means that the total premium that the person pays for the entire 20 years is actually less than what they would pay if they take a 10 year policy and then renew it again for another decade. 

 

Let us illustrate this with the premium amounts to be paid in SBI Life - Saral Shield plan for different ages and different periods of the term plan. The term policy has an annual premium of Rs. 3,422 for a 20 year plan with a sum assured of Rs. 10 lakh taken by a person aged 35 years. That means if the individual takes the plan, then he will pay a premium of Rs. 3,422 x 20 years which equals Rs. 68,440. Now instead of the 20 year plan, if he opts for a 10 year plan that he renews after 10 years, then he pays a premium of Rs. 2,518 x 10 years which equals Rs. 25,180 for the first decade, and a premium of Rs. 4,914 x 10 years which equals Rs. 49,140 for the next. That means he pays a total of Rs. 74,320 (Rs. 25,180 plus Rs. 49,140) if he takes a 10 year term policy and then renews it. This implies that the 20 year policy works out to be cheaper by Rs. 5,880 (Rs. 74,320 minus Rs. 68,440). Individuals looking to buy a term policy should note that this amount is likely to increase in the future as the company will probably be increasing the premium amounts for its policies before the next 10 years, which means the renewal will be at a premium which is a bit higher than Rs. 4,914. 

 

The 20 year term plans are ideal for:

  • People looking for a term policy that will give them the peace of mind for a longer period of time without having to worry about life cover.

  • Individuals in their late 40s or 50s who want a cover that will protect their family well into their retirement years.

  • People in their 20s, 30s and 40s who want to take advantage of the lower premium rates.

     

In addition to these term insurance plans, there are other term plans covering periods such as 8 years, 12 years, 15 years, 18 years, 25 years, 30 years and even whole life. Each will have its own unique features and benefits that will make it ideal for some investors. If you are looking for a term plan, it is recommended that you use the term plan comparison in terms of features provided above and also compare term insurance plans using PolicyBazaar. There may be quite a few term plans that suit your needs and you can purchase the one you think best suits your needs to get the necessary cover.

 

Decreasing Term Insurance Plans
The decreasing term insurance plans are renewable term plans where the cover and the premium decrease over the tenure of the term policy. The overall premium of these plans is lower than the premium of level term plans. These plans are mostly used by banks and financial institutions who cover their risks against the mortgage or home loan given to their customer by bundling the term plan along with the loan. The term plan ensures the bank or financial institution will get its money back in case the worst comes to pass. Since the loan amount due decreases each year with payment of the EMIs, this term plan is perfect for these organisations.

 

Increasing Term Insurance Plans
Increasing term insurance plans are opposite of decreasing plans. Here the cover and the premium increase over the overall tenure of the renewable plan. This term plan helps to cover against risk from rising inflation costs that may affect the real value of the death benefits that the insured individual’s family would receive. The cover under these term plans rises at a pre-specified rate and keeps increasing until the overall value of the cover is 1.5 times the original cover under the term policy.

 

Convertible Term Insurance Plans
A convertible term plan is one where the insured party is able to save some money along with getting a life cover. This plan is beneficial where the person wants to get the dual benefits of savings and insurance cover but is unable to pay the higher premium required for these savings-cum-insurance plans. A convertible term plan allows the insured to switch later to an endowment policy or a whole life assurance plan. Some companies may offer this plan as a rider to a term plan which means that the individual pays for the term cover as well the rider to be given the option to be able to convert the term policy later to an endowment or any other such plan. Conversion plans are ideal for people who are certain that they want a savings-cum-insurance plan at a later stage in life but are only looking at a term plan at the present moment. Our term plan comparison will help you get the best term insurance plan.

 

Single Life and Joint Life Term Insurance Plans
Originally, a term plan only used to be available for a single insured party who generally happened to be the breadwinner of the family. However, with the passage of time, and the emergence of the wife also as a working individual, insurance companies realised the need for an insurance cover for her also and started offering a term insurance plan that covered both the husband and the wife. A joint term insurance plan works out to be cheaper than buying two individual term insurance plans. Moreover, the features and benefits remain the same, ensuring both the members get the same advantages of the plan. 

 

Most of the joint term life insurance plans pay the death benefit on first claim basis. This means the term life insurance policy pays the survivor on the death of the other insured person, and the policy ceases to exist. Other policies offer better insurance terms in the sense that they offer the death benefits on the death of both parties. These policies are ideal for a couple with children as it will ensure the dependents will not have to worry about their future if the unfortunate comes to pass and both parents pass away. People who are looking to buy joint term life insurance plans should ensure that they read the insurance terms and conditions so that they know the type of benefit they will receive. The insurance terms will also let them know of other details like the documents they need to show, the time period within which the payment will be made and so on. People can also check with the insurance company for any optional add-on riders that they can opt for with the term insurance plan. Insurers offer a variety of riders such as critical illness cover, personal accident cover, waiver of premium cover, and so on. 

 

A joint term insurance plan is the best option to go with as it also provides insurance cover for the surviving spouse. Moreover, the cover continues if it is not a first claim basis joint term insurance plan. In addition, people looking to buy a joint policy can check the insurance terms to see how the additional riders, if any, taken while buying the policy will operate. Choose the term insurance plan you want using the term plan comparison features on our website.

 

Offline and Online Term Insurance Plans
Offline term plans are those that are sold through traditional methods such as through an agent or a branch, while online term plans refer to term insurance plans that are sold over the internet. Term insurance providers offer an online term plan at a significantly discounted rate than the offline plan. The primary reason for this is the lack of any intermediaries such as the agent or the branch between the policyholder and the insurance company for an online term insurance plan.

 

The sales numbers of online term insurance plans have grown steadily since they were introduced due to the convenience factor and the low premium rates. However, terms plans were not very popular in the country in the past. Agents were more focused on selling savings-cum-insurance plans as they received higher commission from such plans. Only people asking for the best term plan in India were sold term insurance plans while others were sold endowment plans or ULIPs, among others.

 

Thankfully, factors such as opening up of the market, India’s increasing growth rates and the emergence of the country as viable destination for multinationals and foreign institutional investors provided people with a number of newer and better viable investment alternatives. That meant smart people suddenly started looking at best insurance plan of them all – the term plan from a new perspective as it provided a better cover at lower premium. The emergence of the online term insurance plan made things even better. People could now buy online life insurance at the click of a mouse in a few minutes. 

 

Research shows that an online term insurance plan may be cheaper by as much as 40% in some cases than the offline plan that offers the same features and benefits. This has proven to be a winning formula and many people have opted for an online term plan for themselves. There are various reasons for the low premium in an online term insurance policy. For instance:

 

  • There is no commission to be given to agents in online life insurance. This commission forms a bulk of the cost of term plans and is the primary reason term insurance plans were priced so illogically in the pre-internet era. This commission has to be paid for offline plans even in current times.

  • The risk of people who buy online life insurance are rated as lower risk policyholders and this lower risk is reflected in the reduced premium also. The reason for this lower risk is simple. The people who buy online life insurance are more financially savvy and also well-educated. In addition, they take care of their health and work in the lower risk service industry. This means that, from the insurance company’s perspective, the policyholder is likely to live to a relatively old age. All these factors reflect in the lower premium for an online term insurance plan.

     

There are quite a few online life insurance plans that may suit your requirements. A smart way to look at online life insurance plans is to compare term insurance plans side by side and pick the term plan that makes sense. Choose your online term insurance plan using our term plan comparison options. 

 

Best Star Rating Term Insurance

How to Choose the Best Term Insurance Plan?

Term insurance plans have become extremely popular in the last few months owing to a big drop in the cost of premium amount and huge amount of cover. For example, you can get Rs 1 crore of term insurance by paying something below Rs 500 per month. 

While we understand the importance of having a term insurance what confuses a buyer is – How much death benefit cover do I need?

Below given are the factors that one must consider to ascertain the amount of cover required:

 

Your lifestyle characterized by annual income, dependents and liabilities is an important deciding factor. Ideally, one should have a life cover of 15-20 times their annual income. A married person with children should have higher life cover than a bachelor. Somebody with a home loan to pay off should have higher life cover. Also, consider the factor of inflation in paying premiums and coverage benefits.

 

The best term plan in India is the one that will give the insured the highest cover possible at the least premium amount. To find such a term plan, you have to do some term insurance comparison by looking up the term insurance plans on offer from the insurance companies in India. You can use our website to enter your criteria and browse through the plans on offer. Such term insurance comparison will help you find the term plan that has the minimal exclusions and covers all the risks for which you want term insurance. You can also use the website to get answers to the most basic questions such as ‘what is term plan’, ‘what is the period of cover’ etc.

 

You can also choose the best term plan by checking out if they offer joint life cover. Buying a joint life cover will allow you to insure both you and your spouse without the need any additional plan. However, you can for any reason such as higher tax exemptions, subscribe to two individual policies for yourself and your spouse, instead of one joint life cover.

 

If you are looking for additional cover against risks such as critical illnesses, accidents, or hospitalisation due to any reason, among others, you can choose from the various optional riders for yourself.


Term Insurance Plan – Optional or Add-On Riders
Insurance companies offer various riders to add on to the term insurance plan. Policyholders can opt for the riders at the time of signing up for the term plan or even later. Some common term insurance riders are:

  • Critical Illness Rider

  • Total and Permanent Disability Benefit Rider

  • Accidental Death Benefit Rider

  • Hospital Cash Rider

  • Waiver of Premium Rider

Term Insurance Plans

  • Aegon Life iIncome Term Plan

  • Aviva i-Life Term Plan

  • Aegon Life iReturn Term Plan

  • Aegon Life iTerm Insurance Plan 

  • Aegon Life Term Insurance Plan

  • Aegon Life iSpouse Insurance Plan

  • Aegon Life Easy Protect Insurance Plan

  • Aviva i-Life Term Plan

  • Aviva i-Life Secure Term Plan

  • Aviva i-Shield Term Plan

  • Bajaj Allianz iSecure Term Plan

  • Bajaj Allianz iSecure Loan Term Plan

  • Bajaj Allianz iSecure More Term Plan

  • Bajaj Allianz Life Secure

  • Bajaj Allianz LifeStyle Secure

  • Birla Sun Life Insurance Protect@Ease Term Plan

  • HDFC Life Click 2 Protect Plus Term Plan

  • HDFC Life CSC Suraksha Plan 

  • ING My Term

  • Kotak Preferred Term Plan

  • LIC e-Term Plan

  • Max Life Online Term Plan

  • Reliance Online Term Plan

  • SBI Life - eShield Term Plan

  • SBI Life - Grameen Bima Term Plan

  • SBI Life - Saral Shield

  • SBI Life - Smart Shield Term Plan

  • Tata AIA iRaksha Supreme Term Plan

  • Tata AIA iRaksha TROP Plan

     

Your search for the best online term life insurance plans ends at PolicyBazaar. We help you compare term insurance plans available in India by offering lowest term insurance quotes. We also let you compare plans based on features, coverage, etc. Just fill in your basic details like age and annual income earned. Thereafter, we will not only calculate the amount of term insurance you need but also choose the best plans from top insurers. All you have to do is to compare them side by side on parameters of premium, amount of coverage and additional benefits. Thus, you will make an informed choice and buy the policy hassle-free. Get started right away!!  

How does health condition affect premium rates?

Ans:

Premium rates are hugely affected by health conditions.  The chances of a healthy person to be hospitalized are very low. In the same manner , a person having some pre-existing condition  may have to be hospitalized more than once for which he would have to pay  higher premium rates or the disease may also  be excluded from the policy coverage.

What do I need to do to surrender my policy?

Ans:

Either visit the Insurance Company office in person or submit the request online. You can also surrender your policy simply by not paying your premiums.

Can I change the frequency of payment for my policy?

Ans:

Yes, you can, but only in case of your policy renewals.  If you were paying your premium annually (low frequency) you can change your frequency to pay half-yearly or quarterly (high frequency) or vice versa.

How can I change my policy details?

Ans:

In order to change your policy detail you have to submit a written request either online or by visiting the insurance company office in person.

In case I lose my policy document, how do I obtain a duplicate policy?

Ans:

ou have to apply for a duplicate copy of your policy from the insurance company. You will also have to pay the necessary fees and execute the indemnity bond in order to get the duplicate policy.

What is the benefit of opting for riders / add-ons?

Ans:

The main benefit of riders/add-ons is that it provides additional insurance coverage on your existing insurance policy.  You can get riders/ add-ons by paying some extra amount on your basic policy premium.

What is the difference between nomination and assignment?

Ans:

Nomination means the right of the policyholder to appoint another person who will receive the policy money in case of death or unavailability of the policy holder.   On the other hand, Assignment is an act of legally transferring the rights of the policy holder (assignor) to another person (assignee).

What details am I to provide about the nominee/s?

Ans:

While appointing a nominee you have to provide the details including his/her full name, address, age, and your relationship with your nominee. Make sure that the information you provide are correct to avoid any future complications.

Can I change my nominee?

Ans:

Yes you can change your nominee just by filling up the nomination form and submitting it to the insurance company anytime before the maturity date of your policy.

What is nomination? Who is a nominee?

Ans:

Nomination is the act of authorizing another person the right to receive the policy money in case of death of the policy holder.
Nominee is the person who, chosen by the policy holder, will receive the policy money in case of the policy holder’s death.

How much premium will be raised in case there are issues with my medical condition?

Ans:

In case there are issues with your medical condition, your premium will increase. However, there is no fixed percentage of increase in premium. It is completely depended on the insurer’s decision as well as on the policy holder’s actual medical condition.  Even you can reject the offer if you do not want the raise in your premium.

Why should you split your desired sum assured between multiple policies?

Ans:

There are numerous benefits of splitting your money among multiple policies instead of sticking to only one policy.  For example, instead of buying a 20/25years long plan you can buy multiple policies with different maturity dates. This will help you manage your finances better through different stages of your life.  Moreover, when you have multiple policies, the rejection of claim from one insurer will not matter most as long as you have other back up policies to file your claim. On the other hand if you have only one policy and your claim gets rejected, the entire money would be lost.   So it is always better to buy multiple policies instead of one.

Should I pay my premiums through the agent?

Ans:

You can pay through the agent only if you are sure that he is IRDA authorized and provides you the receipt after your payment of the premium.  But it is always better and reliable to pay your premiums directly to the insurance company itself.

What are IRDA guidelines pertaining to claim processing?

Ans:

According to IRDA guidelines, the company has to process a claim within 30 days. If the claim needs further verification, it should not take more than 6 months to settle. In case the company fails complete the whole procedure within 6 months the company will have to pay interest on the claim amount. 

What is IRDA?

Ans:

Insurance Regulatory Development Authority or IRDA in short is the apex body that oversees the insurance industry in India.  Apart from protecting the interests of the policy holders, it promotes  , regulates and makes sure that the development of the insurance industry in India is in order.

What are reasons for the rejection of a claim?

Ans:

Here are a few main reasons for which a claim may get rejected:
• Lapsed policy: Once your policy is lapsed there is no chance that your claim will be paid any more.
• Avoiding Compulsory medical tests: Some insurance plan ask for some mandatory medical tests. If you avoid those tests your claim may get rejected.
• Mandatory exclusion plans: Some policies are pre conditioned to exclude some particular events or loss. If you ask for coverage on such events your claim may get rejected.
• Inadequate or untrue information: If you have not provided some important information (e.g. some pre existing condition) in the proposal form, your claim may get rejected. Similarly If you have provided some false information, your claim will be rejected.

What will happen if my claim is rejected and my nominees wishes to re-apply for it?

Ans:

If your claim gets rejected your nominee can re-apply for it. For that, he will have to submit a written application to challenge the insurer’s decision of repudiation of your claim. If the nominee is not entertained by the insurance company he can approach the local insurance ombudsman (for claims up to Rs. 20lakhs). He can even move to consumer court and claim for above Rs. 20lakhs.  Both the ombudsman and the consumer court have the power to compel the insurer to reconsider his decision.

Who is entitled to receive claim benefit?

Ans:

The nominee last recorded under the policy is entitled to receive the claim benefits in case of death of the policy holder.

What will happen if death occurs within a year of policy purchase? Will claims be settled?

Ans:

If death occurs within a year of policy purchase, the insurance company will do a thorough investigation on the matter to strike out any chance of fraudulency or criminal intent. The nominee will get the entire amount of the assured money and the claim will settle within 180 days of submitting all the relevant and necessary documents of the early death claim to the insurance company. 

What documents are required for claim settlement?

Ans:

Following are the documents required for claim settlement:
• Mandatory documents: In case of death claims the mandatory documents include
Original Policy bond
1.Copy of death certificate and self attested by the nominee.
2. Copy of photo identity proof
3.Copy of residential proof
4.Copy of bank passbook of the nominee along with cancelled cheque.
• Additional documents:
In case the policy holder is murdered or killed in an accident, the following documents are required along with the mandatory ones:
1.Copy of FIR
2.Copy of Post Mortem report
In case of non-accidental death of the policy holder, the following documents are required along with the mandatory ones:
1. Copy of medical and legal cause of death
2.Copy of medical reports
3.The certificate issued by the attending physician
4.certificate issued by family doctor (optional)

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