Frequently Asked Questions

Yes, life insurance for businessmen includes options like keyman insurance or group insurance. Keyman Insurance protects the business if a critical person passes away. Group insurance can cover employees under a single policy.

Yes, life insurance affordability is possible even for individuals with lower incomes. There are plans designed with lower premiums and flexible payment options. These policies still provide essential financial protection, helping secure your family’s future without straining your finances.

Yes, you are eligible to purchase life insurance in India. 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, specially-abled individuals can purchase life insurance. 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 life-threatening condition, 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 or cancel your policy altogether and look for another.

A life insurance policy can be bought online as the processes are digitised 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.

A policy purchased online is much more convenient, as it helps save time and money for both you and 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. The coverage remains the same, though offline purchases may involve additional service charges.

Staying invested for the full policy term ensures uninterrupted financial protection and full policy benefits. Ending a policy early may result in reduced payouts or loss of coverage. Completing the policy term helps you receive the maximum value from your life insurance plan.

Yes, you can take a loan against your life insurance policy. 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.

Multiple life insurance policies may be required if one policy does not meet your total coverage needs. 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. If you can justify the total amount of coverage and your specific needs from each, it is okay to have multiple life insurance policies.

No, premiums don’t change over time. 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.

Various premium payment options are available. 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 the 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.

Claim rejection can occur due to incorrect information, non-disclosure of health conditions, non-appointment of nominees, the cause of death not covered by the policy, non-disclosure of important information like smoking, and other such exclusions mentioned in the policy.
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.

To receive your claim, there are primarily two ways. You can either opt for a lump sum amount or pay 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 it 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 settlement 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.

The death benefit is paid out to the claimant within 1–2 weeks of receiving complete documentation. The required documents include the claim form, policy bond, death certificate, hospital records, etc. Digital claim settlement can accelerate this further.
This swift claim payment provides immediate liquidity when beneficiaries need it urgently to cover debts, expenses, and more. It also highlights the policy's reliability.

Filing a life insurance claim mid-term does not affect the premiums you've already paid. The claim process will determine if your beneficiary receives the death benefit, but it doesn't change the premium payments made before the claim.

Life insurance premiums usually cover death due to most causes if mentioned during the purchase of the policy (except specifically excluded). Unlike health insurance, life insurance policies generally do not have long waiting periods for pre-existing conditions.

An agent who sells life insurance products is registered with the IRDAI and is required to pass a pre-contract examination, conducted by NSE.IT. Always insist on seeing the agent's authorisation card issued by IRDAI before interacting with them.

A participating (or with profits) policy would enable the policyholder to share in the profits of a life insurance company, while a non-participating (or without profits) policy does not have this right. Profits that are allotted to the participating policyholders are usually in the form of reversionary bonuses or dividends. These bonuses or dividends are not guaranteed and can increase or decrease depending on the investment returns of the life funds.

Risk evaluation is done through a process called underwriting, wherein a life insurance company decides whether to accept a risk. The risk of death is determined by several factors such as age, sex, habits, personal and medical history, occupation, etc. The life insurance company's decision to ensure your life is based on the information provided in the application form, the medical examination report (if required), etc. Be truthful whilst filling in your form so that the life insurance company can be fair in its assessment of the risks involved.

Policy non-payment activates a grace period during which the policy remains active. During this period, you can still pay your premium, and the life policy continues to be in force. For the monthly mode of payment, the grace period is usually 15 days, while for other frequencies of payments (semi-annually or annually), it is usually 30 days. When your life insurance policy has lapsed, you may revive or reinstate it to full force within a period and under certain conditions, such as declaration of your state of health at the time of reinstatement.

Yes, a free look period refund allows you to cancel the policy within 15 days of receiving the policy document. You can return the policy and receive a refund after applicable deductions.

Replacing an existing life insurance policy is generally not recommended, as life insurance is a long-term commitment. Surrendering your policy usually results in a payout that is lower than the total premiums paid, leading to a financial loss. Additionally, buying a new policy later in life often means higher premiums due to increased age and fresh policy issuance costs.
Moreover, replacing a policy restarts the contestability period, which can impact claim security in the initial years. Instead of cancelling, it is advisable to check if your current insurer can make the required changes or enhancements, which is often a more cost-effective option while retaining the benefits of your existing policy.

If you surrender your life insurance policy, which has been in force for several years (normally a minimum of five years), it will acquire a cash value. The cash value is the 'savings' portion of a life policy. It is derived when your premium payments are more than the cost of insurance, whereby the excess goes into a cash value account and draws interest. If you decide to surrender your life insurance policy, the life insurance company will pay you the cash value, also known as the surrender value. You will suffer a loss if you surrender your policy before the maturity period.

No, a life insurance sales illustration is not a legal document. Legal obligations of a life insurance policy are spelt out in the policy itself. Therefore, a policyholder should review the limits or exclusion clauses before signing the contract.

Traditional life insurance products consist of term insurance, endowment and whole life policies. You can benefit from such instruments as they have a cash value which increases every year as you pay premiums. Some traditional life insurance policies are participating, meaning they may issue dividends. They also offer tax benefits, and the premium remains level throughout the entire duration of the policy.

There is no ideal age to buy life insurance. You may start as early as possible. Preferably, in your 20s or early 30s. Buying early allows you to enjoy lower premium rates while you are young, making the policy affordable over the long time. Starting early also gives you longer coverage during key life stages such as marriage, parenthood, and career growth. Even if you buy life insurance later, it is still beneficial, but the premiums may be higher due to age and health factors. Early planning helps ensure continuous protection and better financial security for your family.

Yes, life insurance cover can be increased later, depending on the type of policy. Most insurers offer enhancements of coverage amount during major life events such as marriage, childbirth, an increase in income, or the purchase of an additional policy.

The life insurance beneficiary should be someone who is financially dependent on you, such as your spouse, children, or parents. Choosing the right life insurance nominee ensures the payout reaches the person who needs financial support the most and helps avoid claim delays.

If you don’t nominate anyone, the claim payout may be delayed. In such cases, the insurer may ask for legal documents like a succession certificate before releasing the claim amount.

Lapsed life insurance policies can usually be revived within a specified period by paying pending premiums and fulfilling revival conditions. Revival helps restore coverage and policy benefits.

Life insurance suicide clause generally states that if suicide occurs within the first 12 months, the claim may not be paid. After this period, most insurers pay the death benefit as per policy terms.

Life insurance validity is not affected if you change your city or country. However, you should inform your insurer about the change to ensure smooth communication and claim processing.