Life Insurance FAQ

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What is death Claim?

It is the claim payable at the time of death to the nominee or any legal successor, if no person is nominated by the insured or no will is made, the claim is paid to the holder of a Succession Certificate.


When is policy lapsed?

The Policy lapses, when you don’t pay the premium within the grace period provided after the due date


What is Surrender Value?

It is that value which is payable by the insurer whenever he desires to terminate the contract before the expiry of the Policy term. The insured can surrender the policy if the policy is kept in force for 3 years and Bonus is also added to that value if the policy has been there for atleast 5 years.


What is Nomination?

It is the process wherein a person is identified for receiving the Policy money in the event of the death of the insured. Nomination can be done at the inception of the Policy by providing the nominee’s details in the proposal form, however if it’s not done at that point it could be done at a later date.


Who is a beneficiary?

Beneficiary is the person who will be paid off any benefits through your Life Insurance policy


Who is a policyholder?

The person who has entered into a contract of insurance with the insurance company. He is the person who is liable to pay the periodical premium to the insurance company on the policy taken.


Who is a life insured?

The person whose life is covered under the contract of insurance.


Who is a proposer?

The person who proposes to enter into a contract of insurance with a life insurance company to insure himself or another life on whose life he has insurable interest.


What is premium?

Premium is the consideration (price) payable periodically to the life insurance company for the risk undertaken by it under the insurance policy.


What is a life insurance policy?

A written document issued by a life insurance company to a policyholder, which states the insurance contract between the company and the policyholder.

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