What is Life Insurance?

Life Insurance is a contract between you and a life insurance company, which provides your beneficiary with a pre-determined amount in case of your death during the contract term. Buying insurance is extremely useful if you are the principal earning member in the family. In case of your unfortunate premature demise, your family can remain financially secure because of the life insurance policy that you have purchased. The primary purpose of life insurance is therefore protection of the family in the event of death. Today, insurance is also seen as a tool to plan effectively for your future years, your retirement, and for your children's future needs. Today, the market off .

What is a cash value life policy?

A cash value life policy covers you for your lifetime. "Cash value" means that premiums generally stay level during the premium payment period. The policy not only provides insurance benefits when you die, but it also builds up a dollar value from your premium payments and investment returns. You can borrow against this value with a policy loan or redeem it for cash at any time before the policy matures. Whole life, universal life and extra value life are some of the more popular forms of cash value life policies.

What kind of life insurance should I buy?

If you have long-term needs - for example, if you require life-long protection for premature death, retirement income or cash to settle your estate - then you should consider cash value insurance. Likewise, if you need protection for a specified period of time, perhaps to pay off a loan or mortgage in the event of your death, term insurance may be the right choice for you. Apply now to get a free quote on term life insurance at affordable rates.

Can I increase my life insurance coverage?

Usually, you can increase your coverage with a new policy or by adding a rider to your existing policy. However, a universal life policy can be increased without a rider or new policy. All coverage increases require you to provide evidence of insurability to your insurer.

What are the definitions of "convertible" and "renewable?

Convertible" and "renewable" are provisions in a term insurance policy. With a convertible policy, the policy owner has the option to exchange the policy for another insurance plan without evidence of insurability. However, term policies can only be converted to cash value policies. With a renewable policy, the policy owner can renew (or extend) the policy at the end of its term without evidence of insurability. When a policy includes both provisions, they continue until specified ages and then stop. Premium rates increase at each renewal, based on the insured's age.

Why do I need life insurance?

Life Insurance provides for financial security in the event of death or on the inability to earn due to physical disabilities. Besides providing for financial security in the case of one's untimely death, it can be used to accumulate a kitty for your old age, systematically build assets, for funding your child's education and also for saving on taxes.

I know I need life insurance, but cannot afford the coverage I need. Can I do anything to lower the cost?

The cost of life insurance depends on three factors: your age, health and your income. We suggest that you not compromise on the level of protection you require. You could purchase a basic protection policy that gives you the opportunity to pay only the minimum premium. You can choose this affordable policy, without any riders.

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

Riders / add-ons are the additional benefits that can be added to the basic old policies prior to July 1, 2006, by paying a marginal additional premium. Riders offered by us are:

a. ADBR: Accident & Disability Benefit Rider
b. ABR: Accident Benefit Rider
c. CIBR: Critical Illness Benefit Rider
d. WOPR: Waiver of Premium Rider.
e. IBR: Income Benefit Rider.

Who is a Beneficiary?

The person(s) named in the policy to receive the life insurance proceeds upon the death of the insured.

What is the Cash (Surrender) Value?

The amount that is available in cash for loans and that may be available for withdrawals. Accessing Cash Surrender Value may reduce the death benefit and may increase the risk of lapse.

What is Convertible Term Insurance?

Term insurance which can be exchanged (converted), at the option of the policy owner and without evidence of insurability, for a permanent insurance policy.

What is the Face Amount?

The amount stated on the face of the policy that will be paid in case of death. It does not include additional amounts payable under accidental death or other special provisions, or acquired through the application of policy dividends.

What is Level Premium (Life Insurance)?

Life insurance for which the premium remains the same from year to year. The premium is normally more than the actual cost of protection during the earlier years of the policy and less than the actual cost in the later years. The building of a reserve is a natural result of level premiums. The payment in the early years, together with the interest that is to be earned, serves to balance out the underpayment of the later years.

What is Paid-up Insurance?

Insurance that will remain in force with no need to pay additional premiums.

What is a Participating Policy?

A life insurance policy that is eligible for the payment of dividends by the insurer (see also Dividend.)

What is Renewable Term Insurance?

Term insurance which can be renewed at the end of the term, at the option of the policy owner and without evidence of insurability, for a limited number of successive terms. The rates generally increase at each renewal as the age of the insured increases.

What is term insurance?

Term insurance is a basic type of insurance coverage that you can buy, as the name implies, for a specified period of time. Term insurance is strictly insurance, and has no cash value. It also offers the lowest premiums. When a term life insurance policy expires, you must renew it to continue the coverage, and premiums increase in proportion to your age.

What kind of life insurance should I buy?

If you have long-term needs - for example, if you require life-long protection for premature death, retirement income or cash to settle your estate - then you should consider cash value insurance. Likewise, if you need protection for a specified period of time, perhaps to pay off a loan or mortgage in the event of your death, term insurance may be the right choice for you.

Can I increase my life insurance coverage?

Usually, you can increase your coverage with a new policy or by adding a rider to your existing policy. However all coverage increases require you to provide evidence of insurability to your insurer.

What are the definitions of "convertible" and "renewable"?

"Convertible" and "renewable" are provisions in a term insurance policy. With a convertible policy, the policy owner has the option to exchange the policy for another insurance plan without evidence of insurability. However, term policies can only be converted to cash value policies. With a renewable policy, the policy owner can renew (or extend) the policy at the end of its term without evidence of insurability. When a policy includes both provisions, they continue until specified ages and then stop. Premium rates increase at each renewal, based on the insured's age.

How does my group life insurance policy differ from a personal life insurance policy?

Since group life is issued as a single master policy to an employer or association, as a plan participant, you have no control over the price or amount of coverage. If you leave the group, your coverage usually terminates.

Will my family receive the insurance amount immediately after my death?

Usually the proceeds of the insurance policy are made available to the nominee in a period of 3 months; provided all the relevant paperwork has been done. If you have purchased a policy for your child, then please verify the details of the policy. Few children's policies offer no money to the nominee upon the death of the proposer or the parent.

What is nomination? And who is a nominee?

Nomination is a right conferred on the life insurance policyholder to appoint a person or persons to receive the policy monies in the event of the policy becoming a claim by death. Any policyholder, who is a major and the life insured under a policy, can make a nomination. A nominee is the person designated by the policyholder to receive the proceeds of an insurance policy, upon the death of the insured.

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

The following details are necessary when filling in the proposal form: full name of the nominee, address, age, and the relationship between you and the nominee.

Can I change my nomination?

Yes. You can change your nomination at any time till the maturity date. All you need to do is to inform us about the change through the specified form.