Q. What is annuity ?
Its a scheme when you pay certain amount of money in intervals of months or yaers of half yearly or quarterly.
Q. What is Whole Life Insurance ?
The premiums will have to be paid as long as the policy is on. It is a type of permanent life insurance
Q. What is term insurance?
As the insured person get older the premium will keep increasing but no cash value adds on the life insurance.
Q. Is a term policy more beneficial than a whole life policy?
The decision to purchase either a term or a whole life policy is dependent on your individual needs and requirements. A term policy only meets your protection needs. In case your liabilities are high and you cannot afford to invest a high amount of premium then a term policy which is usually a low cost option suitable for you. A whole life policy on the other hand is a combination of protection and savings. Apart from providing protection, a whole life policy offers you the benefit of withdrawing some part of the amount depending on your requirements during different stages of life.
Q. What is Universal life insurance?
It is a flexible life insurance policy when the owner of the policy can change his death benefit and can change the amount or time ofthe premium payments.
Q. Does life insurance give me tax benefit?
Yes, tax deductions on income tax and wealth tax is applicable on taking life insurance. This is available for amounts paid by way of premium for life insurance.
Q. Can I change my beneficiary on my policy?
Yes, Beneficiary changes are usually in writing, on a form that your insurer will provide. However if you have designated an irrevocable beneficiary, you are not allowed changes without prior consent of the current beneficiary.
Q. What is Face Amount?
Commonly used to refer to the principal sum involved in the contract.
Q. What is a Rider?
A provision attached to a policy, that adds benefits not defined in the original policy and customizes the policy for the individual’s needs.
