Frequently Asked Questions

Your money is invested based on the type of plan you choose. Traditional plans typically invest in low-risk instruments such as government securities and high-quality bonds and the returns are fixed in traditional plans, while ULIPs invest in a mix of equity and debt funds that you can select according to your risk appetite. All life insurers are regulated by the Insurance Regulatory and Development Authority of India (IRDAI), which sets strict guidelines on investments, capital adequacy and disclosures, ensuring that your money is managed prudently and remains secure.

The difference between an agent and a broker lies in who they represent. A broker represents the insurance buyer and does not work for any specific company. As a result, brokers provide personalised advice on the best insurance options based on their clients’ needs.
An agent, on the other hand, works on commission and represents one or more insurance companies. They sell specific policies on behalf of those companies.

Paying premiums through an agent is a personal choice. You have the option of paying the premiums directly to the insurance company or through the agent. If you choose to pay through the agent, you must ensure that the cheque is written in the name of the insurance company. You must also ensure that you receive the receipt from the insurance company.

The amount of premiums paid depends on the insurance coverage you need. First, you must look at what current benefits your insurance policy provides, whether you are opting for a rider. With some riders, you may stop paying premiums for your policy when you become disabled and still enjoy the benefits of life insurance protection. However, if your policy does not have this benefit and you are finding it difficult to continue meeting the premium payments, you should discuss with your financial adviser other options that may be available for you to consider.

To make a claim, you should fill out a claim form and contact the financial adviser from whom you bought your policy. You need to submit all relevant documents, such as original receipts, to your insurer to support your claim. If your insurer can settle your claim, you will be issued a cheque generally within 7 days from the time they receive all relevant documents. However, if your insurer is unable to deal with all or any part of your claim, they will explain to you in writing.

The difference between death benefit and maturity benefit lies in when and to whom the life insurance payout is made. The death benefit is the amount paid to the nominee if the policyholder passes away during the policy term, helping the family manage expenses, liabilities, and future needs.
The maturity benefit, on the other hand, is paid to the policyholder if they survive till the end of the policy term. This benefit is available only in certain life insurance plans, such as endowment or money-back policies, and may include bonuses or returns accumulated over time.

Yes, claims can be filed online through the insurer’s website or application. Digital claim filing speeds up the process and allows easier document submission and status tracking.

Before deciding on shifting from equities to fixed-income funds, consider time horizon and risk tolerance. As the funding date nears, transitioning a portion of equity gains to fixed income can protect against sudden drawdowns. A gradual glide path-phasing moves over several years-reduces timing risk.

Claim settlement documents include the policy document, premium payment receipts, nominee details, and identity proofs. Keeping medical records and contact details updated also helps ensure faster and smoother claim processing.

The claim settlement ratio can be checked on the IRDAI website or in the insurer’s annual report. This ratio shows the percentage of claims settled by the insurer in a year and helps you assess the reliability of a term insurance provider.

Yes, these plans are designed for long-term savings and disciplined investing. They help you plan for goals like education, retirement, or major life milestones. Life cover adds financial security during the saving period.

Savings plans may offer tax benefits on premiums paid and benefits received, subject to applicable tax laws. Tax treatment varies by plan type and policy terms. Please refer to current tax regulations before investing.

A term insurance plan offers pure life protection without savings or maturity benefits. A savings plan, on the other hand, helps you grow money while providing life cover. It supports both protection and wealth-building goals.

Some life insurance savings plans, particularly ULIPs, have a mandatory lock-in period during which withdrawals are not allowed. Once this period ends, you can make partial withdrawals from your savings while the policy and life cover continue.

Savings plans, especially ULIPs, may include charges such as fund management and policy administration fees. These costs can impact your overall returns, so it is important to review them carefully before investing.

Any individual till the age of 60 years can consider investing in a savings plan. These are risk-free saving tools, hence it’s suitable for working professionals, self-employed individuals, parents planning for their child’s future, and anyone looking to build disciplined savings without risk factor.

Yes, modifying the savings plan is a good strategy to keep your savings aligned with your changing life goals, income, inflation rates, and financial responsibilities. Periodic review of your investment helps you meet your long-term objectives with ease.

ULIPs come with a mandatory lock-in clause of 5 years. During this period, you cannot fully withdraw or surrender your policy without specific permitted reasons by regulators. This ensures you continue to retain insurance cover for at least the medium term.

ULIPs carry the same market-linked investment risks that mutual funds do. Equity funds can be especially volatile with high short-term risks. However, long investing horizons of 10-15 years allow potential to generate inflation-beating returns. Choose your asset allocation based on your risk-taking ability.

Yes, most ULIPs allow you to switch your corpus from one fund to another a limited number of times per year without any charges. This flexibility helps you adjust your fund allocation as markets change or as your risk profile evolves.

ULIPs are mostly suited for long-term goals of at least a 10-15-year horizon due to the 5-year lock-in clause plus high early exit penalties. The long term allows for potential equity exposure to deliver inflation-beating returns over market cycles.

Yes, ULIPs offer partial withdrawal facilities after completion of the 5-year lock-in period. Regulations allow for withdrawals of up to 25% of the fund value at that time. This provides access to funds in case of emergencies or interim needs.

In ULIP investments, returns are comparable based on asset allocation and fund performance, and come with insurance cover, which makes them a good option for risk-averse investors as they offer a safety net.

Although it is not possible to directly minimise FMC, you can choose passive fund options or funds with lower management fees. Moreover, always check the fund's expense ratio before investing.

To assess if ULIP charges are competitive, compare polices from multiple insurers, while focusing on key components such as premium allocation charges, fund management charges and more. Utilise reliable comparison tools and consult financial advisors for transparency.

One of the best strategies to avoid surrender charges is by remaining invested for at least the lock-in period. Before investing, always read the policy’s terms and conditions to understand surrender clauses.

ULIPs (Unit Linked Insurance Plans) always involve certain charges, which are deducted from your premium or fund value to cover various costs. Even though some modern online ULIPs offer lower charges due to reduced distribution and administrative costs, no ULIP is completely free of cost. These costs are essential for insurers to manage both the investment and insurance components of the product.