Frequently Asked Questions: Term Insurance

9) Can NRI buy Term Insurance?

NRI’s can buy term plans offered by Indian Insurers. These are normally offered if the NRI has local address in India, has complete KYC documents and he is in India on day of the submission of the proposal. There is restriction on minimum premium as medical test are very expensive overseas. It would be easier if, they agree for medical tests in India. It is however, to be noted that all premiums and sum insured are payable in Indian rupees only.

10) Can NRI Buy Online Policy, which does not require medical Test?

Online polices are offered to resident Indian national only. NRIs can buy the policy when he is in India.

11) Is medical test required for buying term insurance?

No, the medical tests are not required if the sum assured is less and the proposer is young. As the age and cover increases, the requirement for medical tests becomes more rigorous.

12) Do I have to pay for medical tests?

No, the costs for pre issuance medical test are borne by life insurance companies. Infact, most companies even provide medical reports to the life assured along with the policy document.

13) Are medical tests also required in future?

No, medical tests are only required at pre issuance stage. Medical tests would also be required in future if you fail to pay premiums on time, the grace period is exhausted and you want to reinstate your cover.

14) Can I increase my sum assured in existing term plan?

Most companies do not allow you to increase your sum assured in existing term plan. Some companies however, allow increasing the sum assured at specified events in life such as Marriage, childbirth, adoption etc. These companies’ also restrict the maximum sum assured that can be increased typically by 50% of base cover. Some plans known as increasing term plans offer an automatic increase in sum assured at each policy anniversary at predefined percentage, such as 10% of sum assured for each completed years subject to maximum of 100% of base premium.

15) Can I decrease my cover in term plan?

Companies generally do not allow decreasing the term cover in future. May be talk to insurance company that you will stop the policy and they will agree for lower amount.

16) What is Level Premium for Term Plan ?

Life insurance for which the premium remains the same from year to year. The premium in initial years is normally more than the actual cost of protection during the earlier years of the policy and less than the actual cost in the later years. The payment in the early years, together with the interest that is to be earned, serves to balance out the lower payment of the future years.

<< 1 - 2 - 3 - 4 - 5 >>