FFREQUENTLY ASKED QUESTIONS
What is Life Insurance ?
Life Insurance is a contract between the person who buys Insurance and an Insurance company which sold the Insurance. Insurance is basically a protection against a financial loss which can arise on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. By paying a very small sum of money a person can safeguard himself and his family financially from an unfortunate event.
What is Sum Assured ?
Sum Assured is the amount of money guaranteed to be paid on Policy Maturity. It is also the amount of life cover for which the policy holder is being insured.
What is LIC Policy Bonus ?
Bonus is the additional amount the policy holder will get along with the Sum assured on the maturity of the LIC Policy, provided the minimum no of premiums has been paid. The Bonus is not fixed and it may vary.
What is LIC Loyalty Addition ?
Loyalty Addition is similar to the Bonus in an LIC policy which will be provided to the policy holder on policy maturity. Loyalty addition is calculated based on the performance of LIC in the specified year. The policy holder should have paid premium for a minimum specified number of years for the policy to be eligible for loyalty addition.
What is LIC Final Additional Bonus ?
Final additional Bonus is similar to the Loyalty addition that will be generally paid to the policies with Policy Term greater than 15 years.
What is LIC Policy Premium ?
Policy premium is the amount which needs to be paid by the policy holder to LIC(one time or at regular intervals) to buy a new policy or to have the existing policies in force.
What is LIC Maturity Amount ?
Maturity Amount is the amount paid by LIC to the policy holder on policy maturity. This maturity amount will be the Sum Assured with Bonus/ Loyalty Addition / Final Additional Bonus (if any).
Who is a LIC Policy Holder ?
Policy Holder is the person whose life is insured. An LIC policy will be generally taken on the name of the policy holder.
Who is a Nominee ?
Nominee is a person choosen by the policy holder to receive the benefits in case of death of the policy holder. The nominee should be a blood relation to the policy holder. The nominee can be changed by the policy holder at any time before policy maturity.
What will happen if a policy holder stop paying the premium ?
If the policy holder stops paying the premium, the policy will be lapsed and the policy will be no more in force. No life insurance coverage will exist on the policy holder with a lapsed policy.
How to revive a lapsed LIC Policy ?
A lapsed policy can be revived by payment of the accumulated premiums with interest as well as giving the health requirements as required.