The earning member of the family who has dependants or liability (loans like home or business or hospital)
With the aim to fulfil the financial requirements of the family in one’s absence after death
A. PURE TERM INSURANCE
A. Term insurance without any riders or moneyback
A. 15-20 times the income at present
A. 65-70 years
or
till one becomes financially independant (no financial liabilities)
A. The options are to confuse people.
KISS: “Keep it Simple Silly”
BUY PURE TERM INSURANCE WITHOUT ANY RIDERS
A. Both are Equal LIC (High premium but trusted brand) = Private ( Low premium but New companies ).
A. False.
A. No. It is not compulsory.
If they insist, can tell them will choose another bank for loan or complain to IRDA
A. The permanent disability will be certified ONLY by the medical practitioner of the insurance company
Only waiver of future premium should be preferred if there is permanent disability.
A. A life assured shall be regarded as terminally ill only if that life assured is diagnosed as suffering from a condition which, in the opinion of two independent medical practitioners’ specializing in treatment of such illness, is highly likely to lead to death within 6 months.
B. In this case, the payment of Death Benefit will be accelerated and the policy will terminate.
A. In case Life Assured is diagnosed with any of the Critical Illnesses covered under the plan, all future premiums payable under the plan will be waived (Not given by all insurance companies)
Critical illness rider should NOT be taken with life insurance ideally, because, the premium.is almost similar to critical care plan from health insurer, and we in case the need arises the payout of critical care rider is deducted from from total term plan. Term plan cover remains reduced by that much amount thereafter
When we are critically ill, we need urgent hospitalization and urgent money, which will come from a critical care health insurance. Life insurers pay critical care after diagnosis and after we survive the illness for 30days.
A. It’s called converting the policy to a paid up policy
A. Yourself
A. Disclose everything. Do not hide anything
A. Yes
A. Yes
A. If you are not satisfied with the terms and conditions of the Policy, please return the Policy Document to the company for cancellation with reasons within
i. Proportionate risk premium for the period of cover
ii. Stamp duty under the Policy
iii. Expenses borne by the Company on medical examination, if any The Policy shall terminate on payment of this amount and all rights, benefits and interests under this Policy will stand extinguished.
A. The insurance policy is held in a DEMAT form instead of a physical form
NSDL/ CDSL
Not at the moment
A. 1. Having an original physical copy is not required at the time of processing the claim
(Physical copies can get damaged or lost)
2. This demat account can be accessed anytime and anywhere
3. The demat account depository (CDSL/NSDL) give reminders for payment of premium
Just select eInsurance while buying the term insurance.
1. Appoint the nominee as the legal appointee to have access to your eInsurance account
2. Share the username and password with your nominee to have access to your
eInsurance account.
Under this act, Section 6 highlights it’s importance: ” A policy of insurance effected by any
married man on his own life and expressed on the face of it to be for the benefit of his wife, or of
his wife and children, or any of them, shall ensure and be deemed to be a trust for the benefit of his
wife, or of his wife and children, or any of them according to the interests so expressed, and shall
not, so long as any object of the trust remains, be subject to the control of the husband, or to his
creditors, or form part of his estate “
A. For a married, male policyholder, availing a term insurance plan under the Married Women's
Property Act 1874 (MWP Act) helps in protecting your family's financial interests in your absence.
Once a policy is availed under the MWP Act, it may not be attached by courts for repayment of
your debts by any creditors. Only your wife and children will be entitled to the Sum Assured in the
event of your demise.
The term policy under the purview of MWP Act will be considered as a trust . Only trustees will
have control on the policy including servicing, receipt of benefit amount. In case of a death claim,
the policy proceeds are received by the trust and can only be claimed by trustees. It cannot be
claimed by creditors, relatives or form a part of the will (estate of the proposer)*. The trust shall be
holding the claim proceeds for the benefit of the wife and/or child(ren). Hence, the financial future
of your wife and children is protected.
For instance, if you are a salaried person with a home/ personal loan or the owner of a business
and have accumulated debts, your creditors will have the first claim on your policy proceeds in the
event of your death. When you buy a term insurance online under MWP Act, your wife and/or
children will be the only ones who will have access to the claim amount – enabling you to secure
their future financially.
This is also a great solution for a joint family setup, wherein there could be several complications in
the ownership of property, a lot of the fineprint not being explicitly specified thereby increasing the
scope of family disputes over money and property.
A. Just ask your insurer,"I would like to buy this policy under Married Women's Property Act (1874)"
A. You can only choose your wife/child/children as beneficiaries. You can add multiple beneficiaries.
A. Yes
A. For men: Wife and/or children
For women: Kids alone can be beneficiary HUSBAND will not get benefit
A. Not needed to inform
A. After applying for the surrender of a policy *BEFORE FIVE YEARS* , the insurer will first deduct
certain discontinuance charges(DC) and then move the balance of fund value to the Discontinued
Policy (DP) fund.
Discontinuance Charges (DC)
If the annual premium of a policy is > Rs 25,000,
the maximum DC can be Rs 6,000: 1st year
Rs 5,000: 2nd year
Rs 4,000: 3rd year
Rs 2,000: 4th year
No charge: 5th year
For a lesser amount, it is Rs 3,000: 1st year
Rs 2,000: 2nd year
Rs 1,500: 3rd year
Rs 1,000: 4th year
No charge: 5th year
A. If the policy is surrendered before the lock-in-period of 5 years, then the entire surrender value added in Gross Total Income
Tax: as per applicable tax slab rate of the individual
A. Exempt from taxation and assured can avail the tax benefit.
Additionally, the tax benefit claimed on premiums paid in earlier years under section 80C have to be reversed if
1.single premium policy has not been held for at least two years
2.In case of traditional policies like endowment & money back haven’t paid at least 2 years premium
3.atleast 5 years premium in case of ULIPs (unit linked insurance plan) is not paid
but hope there shouldn’t be any issue at time of claim if needed.
A. After an amendment in Section 45 of the Insurance Act, 1938, an insurance company has only three years to call a policy in question.
B. After the expiry of 3 years, an insurance company cannot deny any claim on any ground whatsoever.
C. Before 3 years: Yes, can deny if they find any justification of fraud due to nondisclosure of information
A. If the nominee’s age is less than 18 years, the policyholder should provide an appointee.
B. A minor is not eligible to receive the amount and it should be paid to the appointee as declared by the policyholder.
A. For processing a claim under this Policy,
the following documents (as may be relevant) are to be submitted:
In case the Claimant is unable to provide any or all of the above documents, in exceptional circumstances such as a natural calamity, the Company may at its own discretion conduct an investigation and may subsequently settle the claim.
A. Enter the figures in the excel sheet and take a decision
A. Enter the figures in the excel sheet and take a decision
