Question 1

What is the difference between term and whole life insurance?

Accepted Answer

Term insurance covers a fixed period with no maturity value. Whole life and endowment plans combine cover with savings and cost more. Most young families prioritise adequate term cover first.

Question 2

Who should be the nominee on a life policy?

Accepted Answer

Nominees are the people who receive the claim amount. You can name spouse, children, or parents. Keep nominations updated after marriage, childbirth, or divorce.

Question 3

What are riders in life insurance?

Accepted Answer

Riders add benefits such as accidental death, critical illness, or waiver of premium for an extra cost. Add only riders you need — they increase total premium.

Question 4

How are life insurance claims paid?

Accepted Answer

On death of the life assured, nominees submit claim form, death certificate, and policy documents. Insurers must settle claims within IRDAI-prescribed timelines when documents are complete.

Question 5

Can I hold multiple life insurance policies?

Accepted Answer

Yes. You must disclose existing policies when buying a new one. Total cover should match your insurable interest and financial need — not exceed what insurers will underwrite.

Life Insurance Plans in India

Life Insurance plans

Frequently Asked Questions