FAQ's: on policy cover, MLM etc..
 How do I choose length of coverage?
Your coverage length will depend on case-by-case circumstances. Factors you should consider include your age, your spouse's age, your children's ages, the duration of your financial obligations (e.g. mortgage and student loans) and the number of years until retirement. You will want to choose a term period that covers all the above factors.
Is the sum assured of a policy the same as the maturity value?
No, the sum assured of the policy is not necessarily the same as the maturity value.
The sum assured refers to the minimum benefit payable under an insurance policy under circumstances defined within the policy (usually it represents the amount payable on death) whereas the maturity value of a policy (paid at the time of maturation of your policy) depends totally on the type of policy purchased.
In the case of money back and endowment polices, the maturity value will include the sum assured plus bonuses/profits/guaranteed additions.
In case of Unit linked plans, the maturity value will be the fund value at the time of maturity (plus any additional benefit as per the terms of the policy) and in case of pure term plans, there are no maturity benefits attached.
Is it true that anyone can insure your life?
No. In order to purchase a life insurance policy on anyone, there must be an insurable interest. A relative who might suffer financial loss if you die, a debtor who may be at risk of repayment, a business partner, a spouse, son, daughter, or parents are examples of those who may have an insurable interest.
Will the final premium rates be the same as the rates quoted on the Web site?
It is certainly possible, but not guaranteed. The final rates will be determined by the insurance company through a process called underwriting. Underwriting includes a review of your current health status, medical history, family history and driving record among other things. Underwriting will determine the final rating class, which will establish the final premium rates. Your rating class may or may not be the same as that quoted on their /other Web site. With your assistance, we provide the most accurate quote possible up front.
How safe is it to purchase insurance from a foreign insurance company which have Joint Partners in India?
It is safe to purchase insurance from foreign insurance companies. Since 1999-2000, many foreign insurance companies have established their offices in India, along with their Joint Ventures partners as Indian companies. All these companies are required to strictly follow the guidelines released by the Insurance Regulatory and Development Authority of India (IRDA). Moreover, all these companies have a minimum paid up capital of Rs 100 crore. This paid up capital ensures that all your investments through these companies are safe.
Can Life insurance Policy be bought from a Multi Level Marketing (MLM) agent?
The 'agent', who actually canvasses the policy, is not a qualified agent as per IRDA terms. He's an 'agent 'of somebody, who may be a corporate agent. These 'agents' are just canvassing people, with lucrative offers, not knowing anything about the product /plan Or even the company! Do not buy insurance from MLM companies. Given their doubtful legality, the risk of your dealing with a disappearing agent increases if you need
to make a claim.
How to identify the RIGHT AGENT, Approved By IRDA?
Do not hesitate to ask an agent to show his licence to ensure you are buying cover from the right person. IRDA approved agents OR advisors as termed by some /many private companies will have to prove their identity, if called for.
And you still need to figure out what to buy.
For any other query Or if you have questions ,
you can always mail to : info@growmoneyfincorp.com.
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Opinions expressed in this web page are those of the individual authors and do not necessarily represent the opinion of Grow Money Fincorp or its management. We have not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by Grow Money Fincorp, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice.Grow Money Fincorp will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. |
