1. What is the eligibility criteria to purchase a life insurance policy in India?
The eligibility depends on factors such as the minimum age (typically 18 years) and the maximum age, which varies based on the type of policy. Health conditions and other insurer-specific criteria may also apply.
2. What are the exclusions in health insurance policies?
Common exclusions include pre-existing conditions (during the waiting period), cosmetic surgery, treatment for self-inflicted injuries, and injuries resulting from illegal activities or high-risk behavior.
3. What factors determine the premium amount for life and non-life insurance?
Premiums are based on factors such as age, health, policy type, sum assured, policy tenure, and additional riders. Non-life policies are also influenced by the value of the insured asset (e.g., vehicle or property).
4. Can I buy life insurance for someone else?
Yes, you can buy life insurance for someone else if you have an insurable interest, such as for your spouse, children, or business partners. You must provide proof of this insurable interest.
5. What happens if I miss the payment of a premium for non-life insurance?
If the premium is missed, the policy may lapse. Some insurers offer a grace period (usually 15-30 days) for you to make the payment and restore the coverage.
6. Is there a grace period for paying premiums under a life insurance policy?
Yes, life insurance policies usually have a grace period, typically 30 days, after the premium due date. The policy remains in force during this period, but failure to pay within the grace period may lead to policy lapse.
7. What is the waiting period in health insurance policies?
Health insurance policies typically have a waiting period of 2-4 years for pre-existing diseases. Additionally, certain conditions, like maternity benefits, may have a waiting period.
8. Can I change the coverage amount during the tenure of my life insurance policy?
Some life insurance policies allow you to change the coverage amount during the policy term. This could involve paying additional premiums if the coverage amount increases.
9. What documents are required to buy a health insurance policy in India?
Documents typically required include proof of identity (Aadhaar, PAN), proof of address, age proof, and sometimes a medical report, depending on the insurer’s policy.
10. Can I purchase multiple insurance policies?
Yes, you can buy multiple life or non-life insurance policies. However, the total coverage should be reasonable and aligned with your actual insurance needs.
11. What is the difference between term life insurance and whole life insurance?
Term life insurance provides coverage for a specific period (e.g., 20 years), while whole life insurance offers coverage for the entire life of the policyholder, with an added savings component.
12. What is the sum assured in life insurance?
The sum assured is the amount the insurer will pay to the beneficiaries upon the policyholder’s death, or to the policyholder upon maturity, depending on the type of policy.
13. What is the waiting period for critical illness policies?
Critical illness policies generally have a waiting period of 90 days to 180 days, during which no claim for critical illness can be made.
14. What are the different types of life insurance policies?
The main types of life insurance policies in India include term insurance, endowment plans, money-back policies, whole life policies, ULIPs (Unit Linked Insurance Plans), and pension plans.
15. What is the role of riders in life insurance policies?
Riders are additional benefits added to a base life insurance policy. Common riders include critical illness, accidental death, and waiver of premium riders, which offer extra protection.
16. How does a ULIP (Unit Linked Insurance Plan) work?
ULIPs combine insurance and investment. A portion of the premium is used for life cover, while the rest is invested in various market-linked funds, offering returns based on market performance.
17. What is the benefit of a money-back policy?
Money-back policies provide periodic payouts at regular intervals during the policy term, and the sum assured is paid at the end of the policy term, offering both protection and savings.
18. Can I buy insurance for my home?
Yes, home insurance policies protect your home against risks like fire, theft, natural disasters, and more. Coverage can be customized based on the value of your property and contents.
19. What does a vehicle insurance policy cover?
Vehicle insurance policies provide coverage for damages to the vehicle, third-party liability, theft, and personal injury. Comprehensive plans cover more risks than basic third-party insurance.
20. How does a pension policy work?
A pension policy helps in building a corpus for retirement. The policyholder contributes premiums during the accumulation phase, and after retirement, the insurer pays out regular income in the form of annuities.
21. What is an endowment policy?
An endowment policy is a life insurance product that combines protection and savings. It provides a lump sum payout at the end of the policy term or on the policyholder’s death.
22. How do I file a claim under my health insurance policy?
To file a claim, you need to notify the insurer, submit necessary documents (medical bills, hospital records), and follow the claim process outlined by the insurer. Cashless claims may be available at network hospitals.
23. What is third-party vehicle insurance?
Third-party vehicle insurance provides coverage for damages caused to third parties (people or property) in the event of an accident. It is mandatory in India under the Motor Vehicles Act.
24. What is the role of the Insurance Regulatory and Development Authority of India (IRDAI)?
The IRDAI is the regulatory body overseeing the insurance industry in India. It ensures that insurers follow standard practices, protect consumer interests, and maintain transparency and fairness in their operations.
25. How are claims settled in life insurance policies?
Claims are settled based on the policy terms. After the death of the policyholder or the policy’s maturity, the nominee or the policyholder (in case of endowment or money-back policies) submits a claim, along with required documents.
26. What is the difference between life insurance and general insurance?
Life insurance provides coverage for life-related risks, while general insurance (non-life insurance) covers a range of risks such as health, vehicle, property, and travel insurance.