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Life Insurance FAQs- Insurance, Life Insurance India, Life Insurance Company

1) What is life insurance?

Life Insurance is an agreement that guarantees payment of a stated amount of monetary benefits at the end of a specified term or on the death of the life insured.

2) Why do I need life insurance?

Life Insurance provides for financial security in the event of death or on the inability to earn due to physical disabilities. Besides providing for financial security in the case of one's untimely death, it can be used to accumulate a kitty for your old age, systematically build assets, for funding your child's education and also for saving on taxes.

3) I know I need life insurance, but cannot afford the coverage I need. Can I do anything to lower the cost?

The cost of life insurance depends on three factors: your age, health and your income. We suggest that you not compromise on the level of protection you require. You could purchase a basic protection policy that gives you the opportunity to pay only the minimum premium. You can choose this affordable policy, without any riders.

4) Where can I find more information on life insurance?

Our certified insurance advisors understand your requirements and propose the suitable life insurance policy for you. To get in touch with our advisors click here or write to us at lifeline@iciciprulife.com.


Nomination

1) What is nomination? And who is a nominee?

Nomination is a right conferred on the life insurance policyholder to appoint a person or persons to receive the policy monies in the event of the policy becoming a claim by death. Any policyholder, who is a major and the life insured under a policy, can make a nomination.

A nominee is the person designated by the policyholder to receive the proceeds of an insurance policy, upon the death of the insured.

2) Can I change my nomination?

Yes. You can change your nomination at any time till the maturity date. All you need to do is to inform us about the change through the specified form.

3) What details am I to provide about the nominee/s?

The following details are necessary when filling in the proposal form: full name of the nominee, address, age, and the relationship between you and the nominee.

4) What is the difference between nomination and assignment?

While nomination is an authorisation to receive the policy monies in the event of death of the life assured, it does not give the nominee an absolute right over the money received to the exclusion of other legal heirs. Further, the nomination can be revoked or cancelled at any time during the lifetime of the policyholder at his will and pleasure or by a subsequent assignment.

On the other hand, assignment of an insurance policy is a transfer or assignment of all rights and liabilities of the insurance policy in favour of the assignee.


Claim

1) What is a Claim?

A claim is the payment made by the insurer to the insured or claimant on the occurrence of the event specified in the contract, in return for the premiums paid for the insured.

2) What parameters are considered by the company while asking the claimant to submit particular records / document?

The Company considers the Sum at risk, cause, circumstances of claim and duration of the policy while asking for certain requirements. Eg. For accidental death, specific proofs such as Post Mortem and Police Report are required whereas for death due to illness, the Company calls for records from hospital, test reports, etc

3) Once all the requirements are submitted, how much time does the Company take to settle the Claim?

The Company settles the Claim within 8 working days after all the records, documents and necessary forms are submitted and documentation is completed.

In case, the Claim warrants further verification, the Company keeps the Claimant informed of the same. Subsequently, when the decision is taken, it is communicated to the Claimant by a letter. From November 2005, we have started sending SMS Alerts to the advisor of the policy to enable the quick communication of the decision of the claimants.

4) What is IRDA?

IRDA is Insurance Regulatory Development Authority, that has been set up to protect the interests of the policy holders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. [This definition has been taken from the IRDA website]

5) What are IRDA guidelines pertaining to Claim processing?

As per IRDA (Insurance Regulatory Development Authority), the Insurance Company is required to settle a claim within 30 days of receipt of all requirements.

However, if the claim warrants further verification, the Company should complete its procedures within 6 months from receipt of written intimation of the claim. If the Company settles the claim beyond 6 months period, the interest is payable by the Company on the claim amount. The interest is payable only where the Claimant has submitted all the requirements. Further, rate and period of interest are decided as per IRDA guidelines.

6) Who is entitled to receive the Claim benefit?

The nominee or appointee (in case of minor nominee) last recorded under the Policy in case of Policy on own life. The proposer in case the Policy is not on own life. Assignee in case the Policy was assigned. Life Assured himself in case of policy on own life for living benefit claims (Eg Critical Illness rider)

7) How do I make a Maturity Claim?

You must send us the:

  • Completed Claim form
  • Policy of life assurance
  • Proof of age, if not submitted earlier


Policy Servicing

1) What is the benefit of opting for riders / add-ons?

Riders / add-ons are the additional benefits that can be added to the basic old policies prior to July 1, 2006, by paying a marginal additional premium. Riders offered by us are: a. ADBR: Accident & Disability Benefit Rider b. ABR: Accident Benefit Rider c. CIBR: Critical Illness Benefit Rider d. WOPR: Waiver of Premium Rider. e. IBR: Income Benefit Rider.

2) What is the difference between switch and redirection?

A switch will enable you to shift the existing units of your unit-linked policy into a new fund and will not change your future premium allocation.

A premium redirection will enable you to change your allocation for all the future premiums of your policy. However, your existing units will not be shifted into a new fund.

3) In case I lose my policy document how do I obtain a duplicate policy?

You will need to pay the charges towards the issue of a duplicate policy, which will also include the charges for stamp fee. We will send a 'Duplicate Policy Request' form that you will need to fill and send us.

4) How will the Net Asset Value (NAV) be calculated for my servicing requests?

The Net Asset Value (NAV) is applicable at the time of valuation/purchase. It is calculated as the value on the day you make a transaction request (provided it is a working day).

5) How do I notify a change in address? OR How can I change my policy details?

You have the following options: 1. Download the �Change Request� form from the Download Centre section of our website, fill and send it to us. 2. Call our Customer Service Helpline numbers mentioned in the Contact Us section of the website. 3. Or write to us at the corporate address mentioned in the Contact Us section of the website.

6) How do I effect a Top- up/Fund Switch/Premium Redirection?

1. Download the appropriate form from the Download Centre section of our website, fill in and send it to your nearest ICICI Prudential Branch. 2. For Switch and premium redirection, you can login to the website with your user id and password and give your request online.

7) Can I change the frequency of payment for my policy?

Yes, you can change the premium frequency from low (annual) to a higher frequency (bi-annual or monthly) or vice-versa.

8a) What do I need to do when the life assured becomes a major?

When the life assured becomes a major, you need to submit the proof of his/her age with his/her correct date of birth. You also need to write a covering letter.

8b) Can I change the date of birth after the free look period? If yes, what are the documents required?

Yes, you can change the date of birth after the free look period. All you need to do is submit the proof of age with the correct date of birth, along with a covering letter.

9) When does a policy lapse?

A policy lapses when the policy holder fails to pay the premium even within the grace period. In this case, the policy loses all its benefits.


Surrender/Partial withdrawal/Assignment

1) Can I surrender my policy?

After you pay premiums for at least three consecutive years, your policy acquires a surrender value and you can surrender the policy. If you have an ICICI Prudential single premium policy, you can surrender your policy after the first year.

2) What do I need to do to surrender my policy?

You need to submit the Payout Request Form which is available in the Download Centre section of our website. Alternatively, you can contact us at any of our contact points.

3) What is partial withdrawal?

Partial withdrawal of a policy implies withdrawal of only a part of the funds of your policy. The applicable norms for partial withdrawal may differ for every product. For product-specific details on the same, please refer to the respective product brochures that are available in the Products section of our website.

4) What are Top-ups?

Top-ups are one-time payments. You have the flexibility to make an additional investment through a top-up, which is over and above your regular premium payments. You can make a top-up at any time while your policy is in force. The applicable norms for top-ups may differ for every product. For product-specific details on the same, please refer to the product brochures available in the Products section of the website.

5) What is 'transfer' or 'assignment' of a life insurance policy?

Transfer or assignment is a method of transferring one�s transferable interest in a life insurance policy to another person or institution, for example, as a security for repayment of loans.

6) Can I assign a policy?

Yes, you can assign a policy. To assign the policy, you have to notify us regarding the assignment.

7) How do I assign a policy or transfer a life insurance policy?

Assignment or transfer of a life insurance policy may be made by simply making an endorsement to that effect in the policy document. Another way of transferring or assigning the life insurance policy is to get a separate assignment deed executed.

The former case is the preferred mode of assignment as it is exempt from further stamp duty. An assignment should be signed by the assignor or his duly authorized agent, and should specifically state the fact of transfer or assignment. The document should be attested by at least one witness.

8) Is assignment allowed on all the insurance plans?

Assignment is applicable on all insurance plans except Pension Policies and Married Women�s Property Act (MWP).