- What is the objective of insurance?
There are several objectives of insurance like providing financial security to one's family in case of unfortunate happenings, tax savings, wealth creation, financial planning for children's education/marriage and provision for old age.
- Is insurance better than other savings plans?
Other savings plans like Bank Fixed Deposits, NSC, PPF, Units have short maturity tenures, compared to life insurance policies. (Eg.: NSC for 6 years, PPF for 15 years & life insurance can be up to 100 years). Hence, other saving plans offer you little scope for financial planning prospects.
Whereas, a Life Insurance Policy pays the Sum Assured and bonus (with bonus policies) even if the Policyholder expires before the end of the payment term. Hence, this provides greater security to the person and his/her family. As such, insurance policy is superior to other savings plans.
- Who can take an insurance policy?
A person who has completed 18 years of age & as per other conditions specified under the Indian Contract Act, 1872 can take an insurance policy either for himself/herself or for his/her dependents.
- Who provides Insurance?
Several insurance companies can offer exciting insurance policies where the money that a customer puts in as protection money also works as an investment over a long period of time.
- What is a premium?
Insurance premium is a payment made by a policyholder to an insurance company for a particular coverage. The payment has to be made regularly till maturity or as stated in policy documents to avail of a specific life insurance cover and other monetary benefits.
- What is First premium?
First premium is the yearly, half yearly, quarterly or monthly premium payable with the proposal form.
- What is First Year premium?
First Year Premium is premium payable in the first policy year.
- What is renewal premium?
All premiums subsequent to the first premium are called as renewal premium.
- What are the different modes of payment?
Modes of payment are different for different policies. However, most policies allow you to pay premium in the following modes: annually, semi-annually, quarterly and monthly.
- What are the premium payment options?
You can pay premiums either by cheque, cash, ECS or online payment.
- Do we get an acknowledgement of premium paid?
For Initial premium:
- If any individual application form is submitted at the branch along with instrument/cash, upfront temporary receipt is handed over by the branch to the customer and thereafter follows pt. b & c (as the case may be).
- If the payment is received by net disbursal, acknowledgement for such payment is made by way of official receipt, which is sent along with the Policy Document (For Issued Business only i.e. for policies, which have been issued).
- Refund is made by means of an account payee pay-order /demand draft to the customer (For Non Issued Business i.e. for policies which have not been issued due to some delay).
For Renewal premium:
- If for any individual, renewal premium is submitted at the branch along with instrument/Cash, upfront temporary receipt is handed over by the branch to the customer and thereafter an official receipt is provided to the customer.
- What if I don't pay my premiums? Do I lose my insurance?
Typically every insurance policy offers you a grace period of 30 days to pay your premium. After that, the company decides if you can pay back premiums and reinstate the policy. You may have to provide a sound evidence of your good health.
- Can I cancel my policy after paying my premium? Will I receive a refund?
Every insurance policy offers a "Freelook" period of 15 days from the date of receipt of the policy documents. If the customer expresses his interest in cancelling the policy within this period, the insurance company will refund the premiums paid after deduction of some nominal charges.
- When is the right time to buy insurance?
The ideal time to purchase a life insurance policy is at a younger age. If you purchase policy when you are young and healthy, rates will be quite lower than purchasing policy at an older age or when health issues arises. In short, buying policy at a younger age can be financially beneficial. Other situations when you must buy an insurance policy is when you have a family, have an elderly parent and have other important financial commitments.
- How much coverage do I need?
If you are the sole breadwinner in your family, your life insurance coverage should be sufficient enough to take care of your family in case of unfortunate events like death or disablement. There is no exact rule to determine your need. However, the best practice followed is: buy an insurance coverage that is seven to ten times your annual income.
- What/Who is a beneficiary?
The person(s) or entity (ies) (e.g. corporation, trust, etc.) named in the policy as the recipient of insurance proceeds upon the death of the insured.
- What should I look for in a policy?
While buying an insurance policy, carefully read and assess the benefits provided therein. Check the term and premium and be clear about your requirements. Look for a proper coverage. Do not compromise on the amount of coverage you require. You can avail basic coverage where you are asked to pay minimum premium. Do consult your financial advisor before finalizing on any policy.
- Do I need more than one Insurance Policy?
Yes. Since no single policy can meet all insurance objectives, it is recommended that you should acquire a portfolio of policies covering your various needs.
- Is my money safe with an insurance company?
Most of the foreign partners in the Indian market are well-established global insurance players with a proven track record in the business. All insurance companies in India are regulated by the IRDA (Insurance Regulatory and Development Authority) which has laid down very clear criterias defining the manner in which insurance companies can invest a customer's funds. In fact, every insurance company needs to have a minimum paid up capital of Rs. 100 crores, which acts as a safety net.
Further, the insurance companies are also required to maintain their solvency margins depending on their volume of business. The minimum solvency margin required to be maintained by any insurer is Rs. 50 crores.
- What is Reversionary Annual Bonus?
At the end of each financial year, the Company may declare a bonus, which may be a percentage of the sum assured and may be compounded annually
Note: Bonus is not guaranteed and depends on the performance of the company. Past performance is not a guide to future results.
- What is compound reversionary bonus?
At the end of each financial year, the Company will declare a rate of reversionary bonus. This percentage will be applied to the sum assured plus existing declared reversionary bonuses making it a compounded bonus.
- What do I do when the help line numbers are not accessible?
Customers can call Tata AIA Life on Helpline No's at 1-860-266-9966 (local charges apply) or 1-800-267-9966 (toll free from MNTL & BSNL). However, incase they are unable to get through, they can dial the below mentioned numbers:
(022) 6693 9500 Mumbai Landline Service (011) 6660 3500 Delhi Landline Service (080) 6650 0001 Bangalore Landline Service (044) 6684 1050 Chennai Landline Service (020) 6601 4156 Pune Landline Service (040) 6662 9882 Hyderabad Landline Service
Customers can even send in an SMS by keying in "SERVICE" to 58888. On receipt of the SMS, Tata AIA Life's Customer Service Representative will call back the customer within 1 business day.
Customers can also write to firstname.lastname@example.org or fax on (022) 6706 0376.
- What is Children's Plan?
A children's plan is a financial plan, which ensures that your child's life is smooth and secure in future. The money paid in premium towards children's plan makes sure that their educational and/or other needs are fulfilled, even when you are not around.
- Why should I buy Children's Plan?
As a responsible parent, it is vital that you make special provisions for your child to help him lead a trouble-free life ahead. Your child would require lump-sum money for different needs like education, professional degree, marriage, etc. A proper children's plan is just meant for that. It pays a regular amount so that your child's future needs and dreams are fulfilled.
- What are the different types of Children's Plans?
There are two types of Children's plans- Traditional plans and Unit-linked plans. Traditional plans invest in debt instruments, because of which you get moderate returns. Unit-linked children's plans have the ability to give you attractive returns since they invest across equity and debt markets in varying proportions.
- What are the benefits?
Children's plans give a specified amount at a specified period, which can be used for different purposes as education, higher studies, marriage, etc. Death cover provides immediate relief by paying out the sum assured to your child. Maturity benefit at a specific age will come to your child, which they can use for their future needs.
- In the event of death, does the policy get cancelled?
No. In case of a contingency, the sum assured in the children's plan is paid to your child. Besides, there is an in-built Waiver of Premium (WOP) benefit that waives all future premiums payable till maturity and gives you the maturity amount immediately.
Kindly confirm if we are taking about some specific plans here
- Is there any tax benefit/ do I get any tax benefit?
Yes. All premiums that you pay as premium towards the children's plan are exempted from tax under Section 80 (C) and 10 (10D) of the current Income Tax regulations. The premiums, regular payouts and the sum assured are all exempted from tax.
- How do I make a claim?
You can make a claim by intimating Tata AIA Life in the following ways:
- Through an agent or advisor(how are they different)
- By walking into any of the branches/Zones/H.O./Corporate Office of Tata AIA Life Insurance Company. Ltd.
- Through letters
- Via the Helpline No's at 1-860-266-9966 (local charges apply) or 1-800-267-9966 (toll free from MNTL & BSNL).
- Via an SMS by keying in 'SERVICE' to 8888
- By emailing to email@example.com
- By claim notification card
- To whom is the death benefit / claim amount payable?
The death benefit is paid to:
- The nominee, as declared by the insured/the policyholder
- The legal heirs, in case the policyholder/insured has not specified the nominee
- The appointee named by the policyholder/insured, when the nominee is a minor at the time of claim
- The assignee, in case the policy is assigned by the policyholder/insured
- The Trustee wherever applicable
- What documents are required for a death claim?
The following documents are required in order to make a Death claim:
- Claim Form
- Part I: Application Form for Death Claim (Claimant's Statement)
- Part II: Physician's Statement
- Death Certificate of the life insured
- Medical cause of death' Certificate issued by attending physician
- Attested True copy of Indoor Case Papers of the hospital(s)
- Burial or Cremation ground certificate
- Original Policy Document
- The Insured's Photo ID with Date of Birth (if not submitted for policy issue)
- Photo Identification of the beneficiary or nominee or appointee or assignee who is entitled to receive the payment
- Proof of legal title to the claim proceeds (e.g. legal succession paper, assignment deed) Additional requirements may be called for depending upon the circumstances of death at the discretion of Tata AIA Life Insurance Company Ltd.
- What are the additional requirements in case of death by an accident?
In addition to the requirements for a death claim, the claimant should submit all the reports (police, hospital etc.) pertaining to the accident as required by the company, mentioned below:
- All police reports / First Information Report and Final Investigation Report.
- Proof of Accident - Panchnama / Inquest report
- Newspaper cutting / Photographs of the accident - if available
- How do I claim the Critical Illness rider benefit?
For claiming the Critical Illness rider benefit, the below mentioned documents are required:
- Claimant Statement
- Attending Physician's Statement
- All related medical / hospitalization records
- Diagnostic tests reports
- Who receives the claim amount if the insured dies at the time of treatment?
In such instances where the insured passes away during treatment, the claim amount is paid to the nominee. If no nominee is named under the policy, the insurance company will request the Court of Law for a succession certificate in order to disburse the claim amount.
- Where can the case be presented in the event of a claim dispute?
The claimant has to first approach the Customer Care department of the company in case of a claim dispute. If there is no satisfactory response, the policyholder /claimant may write to the Grievance Redressal Cell of the IRDA, which will then take up the matter with the concerned company for examination\re-examination.
If the complainant is looking for adjudication in respect of claims, he or she may approach the Insurance Ombudsman.
The IRDA (Insurance Regulatory and Development Authority) clearly articulates that a claim will have to be paid within 30 days from the date of receipt of all claim documents.
In case the claim warrants an investigation, then the insurance company has to complete the investigation not later than 6 months from the time of making the claim.
Moreover, if a claim is ready for payment but the payment cannot be made because of conflicts or insufficiency of proof of title, then the insurer may apply to pay the amount into the Court, or, such an amount will earn interest at the prevalent rate applicable to a savings bank account.
Customers can even send in an SMS by keying in "SERVICE" to 58888. On receipt of the SMS, Tata AIA Life's Customer Service Representative will call back the customer within 1 business day.
Customers can also write to firstname.lastname@example.org or fax on 022-6649 8001.
- What is health insurance?
Health insurance is an insurance that pays the insured with a lump sum amount in case of hospitalization and medical emergencies. In short, it provides financial security and protects you against medical expenses.
- What is the difference between Health Insurance and Mediclaim?
There is a marginal difference between a health insurance policy and a Mediclaim policy. Both provide the same nature of benefits, namely health benefits, but differ in certain respect. Apart from health benefits, health insurance also provides a life insurance cover, whereas a Mediclaim policy only offers coverage on health and medical grounds up to a certain limit in a year. It facilitates you with medical check-ups, hospitalization and other medical emergency completely free up to a certain limit.
- What is the need for health insurance?
We all know that health is our topmost priority. You and our family are exposed to various hazards that not only affect your health but also finances. Health insurance provides financial security in times of medical contingencies. It ensures that you are covered against major illnesses. In case you are caught with an illness, health insurance supports you by providing monetary benefits.
- Is health insurance the same as life insurance?
No, health insurance and life insurance differs in their area of coverage. Life insurance protects your family from financial loss that may arise in the unfortunate event of death. The benefit is payable on death or on maturity. Health insurance, on the other hand, protects you against illness/diseases by covering medical expenses arising from treatment, diagnosis, hospitalization, etc.
- Do I need to undergo any medical examination before
buying a health insurance plan?
Yes. A medical check up is required while buying a health insurance policy. There is a certain age limit for medical examination that varies by company. Any person belonging to the specified age limit has to go through medical expenses.
- Will my health insurance pay for diagnostic charges
like X-ray, MRI or ultrasound?
Yes. As long as you are admitted in the hospital for at least one day(kindly check), your health insurance pays for all diagnostic tests like X-ray, MRI, blood tests, etc.
- Who is a Third Party Administrator? *
A Third Party Administrator (TPA) is an IRDA approved organization that processes and settles insurance claims for an insurance company. In short, TPAs outsources the administration of claims processing for the insurance company. It handles other services such as networking with hospitals, arranging for cashless hospitalization, etc.
- What do you mean by Cashless Hospitalization? *
Cashless hospitalization is a service provided by the insurance company to the policyholder. Cashless Hospitalization enables the policyholder to avail medical services at select hospitals and he does not need to pay medical bills. The payment is done directly by the TPA on behalf of the insurance company.
- What is a health card?
A health card is given to the policyholder on buying a health insurance plan. The card identifies you and allows you to avail cashless treatment at select network of hospitals. In case of medical contingencies you can contact the TPA mentioned in the health card.
- Can I buy more than one health insurance policy?
- I am an NRI. Am I eligible to buy health insurance in India?
Yes. Tata AIA Life has introduced unique policies ranging from life insurance to health insurance, especially meant for NRIs.
- I am not an Indian National but I live in India. Can I still buy health insurance?
Yes, if you are a foreigner living in India you can still buy a health insurance policy. However you will be covered only in India.
- What determines health insurance premiums?
Health insurance premiums depend on age and the amount of cover you have opted for. People at young age are considered healthier; hence they are required to pay lower premiums than people of older age who are required to pay higher annual premiums.
- What if I cancel the policy after making premium payments? Will my premiums be refunded?
You can cancel the policy even after paying premiums. Yes all premiums paid by you will be refunded. However, a certain amount would be deducted as cancellation and other charges. Also note that after cancellation of the policy you will no longer be covered.
- What is the minimum and maximum coverage amount that
I can opt for in a health insurance plan?
This largely varies with company. Usually, companies today offers health cover for as low Rs. 25,000. The coverage could go to a maximum of Rs. 5,00,000.
- What is life insurance?
Life insurance is an agreement between a policyholder and the insurer to pay a stated amount of money at the end of a specified term or upon the occurrence of death of the insured person or other event such as illnesses, etc.
- Do I need life insurance?
Life insurance provides financial security in case of unfortunate death of the policyholder or the inability to earn due to temporary or permanent disablement. Besides providing a source of income in unforeseen conditions, today life insurance has emerged as an investment tool that helps you to create wealth exploit the benefits of market conditions.
- Do I need life insurance if I am not the sole breadwinner of my family?
No. If you are not the sole earning member or do not contribute to the family's source of income, you do not need a life insurance coverage.
- My employer has insured me in a group insurance scheme. Do I need to take extra insurance coverage?
It is preferable that you cover yourself with a proper insurance plan of the following reason:
- The amount of coverage may not be large
- If the company you are working in decides for cost cutting, you may no longer be covered
- If you quit the company, you will not be covered
- The group plan may not cover your spouse and children
- When you buy life insurance the premium increases with your age
- Do I need to buy life insurance for my spouse and children?
Usually, it is the earning member who needs to be insured at the earliest. After this is taken care of, you could consider buying a proper coverage for your spouse and children. In the unfortunate event of death of the spouse, the proceeds from life insurance may help in meeting other expenses. Getting life insurance for your children makes sense. This will ensure that your child leads his life trouble-free. You can prefer buying low-cost term insurance for a particular number of years.
- Do I need to go through medical examination when I buy life insurance? If yes, is the cost borne by the company?
Usually, a person buying life insurance coverage for over Rs. 500,000 has to undergo medical examination. This amount may vary by company. The insurance company bears the cost of medical examination.
- What is the importance of age, sex and health in buying a life insurance policy?
Age, sex and health do matter while purchasing a life insurance policy. Cost of insurance increases with age because as age increase, the chances of death claim increases. Since the average life span of females is longer than males, cost of insurance for females tend to cheaper. An individual in poor health will have to pay a higher premium because poor health increases the chances of non-payment of premiums.
- What are the different kinds of life insurance policies available?
There are various kinds of life insurance policies offered by life insurance companies today. Some of them are:
Temporary Life Insurance- offers coverage in case of death for a limited period of time
Permanent Life Insurance- insures the individual until the policy gains maturity or the policyholder fails to pay the premium within due date. Permanent life insurance can further be classified as whole life, universal life and endowment.
ULIP life insurance policies- offers dual benefits of life coverage and mutual funds. They provide life coverage, on one hand and helps in creation of wealth, on the other.
- What kind should you consider?
Choosing the right kind of insurance entirely depends on your needs and your ability to purchase a particular kind of policy. While term insurance offers coverage (death benefit only) for a fixed period of time, Permanent life insurance provides you lifetime coverage. Endowment policies not only offer death benefit for a specific period, but also survival benefit. If you want optimum growth for your money plus life coverage and if you have the risk-taking ability, you can consider Unit- linked insurance plans. Before buying a life insurance think about the individuals who depends on you financially. If you are a retiree or if you have dependant children you probably need higher coverage. Choosing a kind of policy also depends on your financial ability and purpose to purchase one.
- What is Term Insurance?
Term insurance provides coverage for life only. It can be opted for different periods or terms at a very low premium. Hence, benefits of term insurance is payable only on death of the policyholder/insured within the term.
- What is a Whole Life plan?
Unlike term insurance, whole Life insurance is a permanent policy provides that coverage for your entire life. The term of the policy is the whole life. Therefore, when the policyholder dies, death benefit is paid to the nominee or nominees as stated in the policy documents.
- What is Universal Life insurance?
Universal Life insurance is a flexible permanent insurance that covers the policyholder/insured until death and acts as a savings vehicle. Premium payments above the cost of insurance are credited to the cash value. The death benefit/ accumulated cash value and premiums can be assessed and changed by the policyholder as per his needs. The insured can also use the interest accumulated from the savings to help pay premiums.
- What is Endowment Insurance plan?
Endowment plans are among the most popular forms of insurance as they provide both insurance coverage and also act a savings instrument. It pays a lump sum amount after a specified term (on attaining maturity) or on earlier death. The sum assured along with all the bonuses are paid to the policyholder upon the completion of the policy term or on death, whichever is earlier.
- What is Money back policy?
They are a special type of endowment plan are also called anticipated endowment insurance plans. Under money back plans; a certain amount is paid at regular intervals. These are known as survival benefits. Apart from the above, death benefit continues like an endowment plan i.e., full sum assured shall be payable on death within the term irrespective of earlier survival benefits.
- What are riders?
Riders are additional benefits that compensate you for certain losses that are not covered under your policy. You can attach riders as per your needs by paying a nominal extra amount.
- Do I get a greater benefit if I opt for Riders or Add-ons?
Riders/Add-ons are the additional benefits, which you can add to the basic policy by paying marginal additional premium. Each company specifies their own set of riders and the most common riders offered by insurers are: Term rider, Critical illness rider, Accidental death and dismemberment rider, Waiver of premium rider and Payor benefit rider.
- What is Accident Death Benefit?
An Accident Death Benefit provides for an additional benefit amount equivalent to the Sum Assured purchased, subject to underwriting rules, in the case of death due to an accident before the insured reaches age of 70 or before the expiry of the basic policy, whichever is earlier.
- What is waiver of premium benefit?
This rider will waive future premiums of the policy to which it is attached (up to age 60), in the event of any total and permanent disability occurring to the insured during the policy term or in the event of a policy owner's death. The insured's family continues to enjoy the coverage, as Tata AIA Life pays the premium towards the basic policy, to ensure that the policy remains in force. These benefits come to the insured at a low cost.
- What is Critical Illness Benefit?
Critical Illness benefit provides a lump sum payment to the insured in case he/she is diagnosed with any of the critical illnesses as specified in the policy contract. The benefit is paid within 30 days of diagnosis. While the benefit discontinues after the payment is made, the basic policy still remains in force.
- What is the list of Critical Illnesses covered?
Different critical illnesses covered under different products by Tata AIA Life Insurance Company Limited are: Cancer, Stroke, Heart attack, Coronary bypass graft surgery, Chronic renal failure, Recipient of major organ transplants like heart, lung, liver, kidney, pancreas, or bone marrow transfer, Aorta surgery, Benign brain tumor, Heart valve surgery, Paralysis, Parkinson's disease & Total blindness.
- What is permanent total dismemberment?
UPermanent total dismemberment means that the life assured is incapacitated to work or follow an occupation and obtain wages, compensation or profit.
The following are considered to constitute such disability:
- irrecoverable loss of entire sight of both of the eyes
- amputation of both hands
- amputation of both feet
- amputation of one hand and one foot
- What is Payor Benefit Rider?
This rider can be attached to a child's policy. In the event of the premium payor's death or total and permanent disability of the payor (before reaching age 60 and before the insured child reaches age 21), all future premiums of the basic policy will be waived. Such premiums will be waived, until the insured child reaches age 21 or the payor reaches age 60, whichever is earlier. The basic policy will be kept in force, as though the payor has made regular premium payments.
- Are there any tax benefits on purchasing Life Insurance policies?
Yes. All premiums paid under life and health insurance policies are eligible for tax redemption under different sections of the current income tax laws. An individual can avail of an annual deduction of Rs. 15,000 from his taxable income for premium payment of health insurance policies for self and dependents as also for dependent parents. This amount is Rs. 20,000 for senior citizens.
- What kind of returns should one expect from a life insurance product?
Life insurance, as a product is a unique combination of savings / investment and protection; hence it cannot be compared to any other instrument. Insurance provides you a life cover that protects the family financially from any unforeseen event. It also offers tax benefits. When looking at insurance, one should look for the overall benefits and not merely from the point of view of returns.
- How can I buy life insurance policy?
If you have your own financial advisor, you could ask him to recommend the ideal plan based on your unique needs. He will guide you accordingly. If you do not, contact the company to make an appointment with the company's representative. If you are a person who believes on your information, you can find plenty of information on the Internet or from ads in magazines, newspapers, etc. Review and compare various policies offered by companies. Assess you needs, verify the info and then you can finalize on your choice.
- Can I get insurance quotes over the Internet?
It depends with company. While some may put their quotes online, others may require you to fill-out queries before offering a quote or cost estimate.
- What is free look cancellation?
A policyholder can cancel the policy by giving a written notice within the free look period of 15 days from the receipt of the policy. The market value of the invested premiums along with the charges paid will be refunded after nominal deductions and mortality charge on proportionate basis. This is as per the provisions of the IRDA (Protection of Policyholders' Interest, 2002).
- What are the options for paying the premium?
There are convenient options to make the premium payments
- Cash or Cheque
- Business Reply Envelopes (BREs)
- Standing Instruction - Payments can be made through HSBC account (for Tata AIA Life)
- Credit Card - Visa and Master card are only accepted for premium payments
- ECS - Renewal premium can be paid for all modes of premium i.e. monthly, quarterly, half yearly or annually.
- Branches - At all Tata AIA Life Insurance Company Ltd. branches locations in the insured's city
- Kiosks - Renewal premium paid by cheque or demand draft can be deposited in the Kiosk, which is situated at branches.
- Drop Box Facility - Cheques can be deposited in any of the Skypak drop boxes available at various locations across India
- What is ECS?
ECS (Electronic Clearing Service) is an easy way to pay premiums, electronically
- It will relieve the policyholder from remembering premium payment due dates and from periodically writing / depositing cheques.
- It will also prevent a possible lapse of the policy due to non-payment of premiums.
- How do I avail of ECS service?
To avail of this service, the policyholder needs to send Tata AIA Life Insurance Company Ltd, the completed ECS mandate form, verified, stamped & authorized by policyholder's bank, along with a cancelled blank cheque bearing MICR number.
- What happens if I pay excess premium?
Excess premium paid, if any, is parked in Future Premium Deposit Fund (FPDF) account and this excess premium is adjusted with the next renewal premium due. The policyholder does not earn any interest for the excess premium deposited with the insurance company.
- Is change in the mode of premium payment allowed?
Change in premium payment mode is permitted on any due date, subject to a modal premium falling due on the policy anniversary after the mode change is effected. Mode change request must be received 10 days before the premium due date.
- What is Grace period?
Grace period is a period of 31 days from the due date for the policyholder to make premium payment. The policy will remain in force during the period. The policy shall lapse and have no further value if premium is not paid within the grace period unless the policy has cash value.
- What are the additional features or services offered for an insurance policy?
Features or services offered for an individual life insurance policy differs from product to product. However, they can be broadly categorized as follows
Loans Change of plan Change in payment mode Increase or decrease in face value Nomination Assignments Change in address Date of Birth change Occupation change Freelook cancellations Surrenders Reduced Paid up Automatic premium loan Duplicate policy issue Coupons Addition & deletion of riders Fund allocation Fund switching Full fund withdrawal Ownership change Refunds Reinstatements Cancellation Top Up premiums Premium holidays I T certificate
The above services or features are subject to change as per The Insurance Act 1938, the IRDA guidelines issued from time-to-time & the Company rules.
- How can I change my address, and beneficiary name?
You can request for an address change by filling in the Request for Change Form, accompanied by the proof of address. For nomination change we would require a Nomination form duly filled along with the policy document.
- How can I change my face amount?
The client can change the face amount at the sole discretion and at the terms & conditions as laid down by the Company. Any increase in face amount can be allowed only within the first year of the policy, subject to the product rules. Reduction in the face amount can be allowed at the policy anniversaries only.
Face amount cannot be changed in the below mentioned plans after the issuance of the policy.
Assure Educare at 18/21
- Can I add or delete a rider?
Riders can be added or deleted as applicable to each product requirement. For more details the customer is requested to kindly contact his/her insurance advisor or Tata AIA Life's call centre on 1800 11 99 66.
- When does a policy acquire paid up value?
A Policy acquires a paid up value within the currency of the policy & after completion of three premiums paying years. The paid up value is generally calculated by multiplying the sum assured by the ratio of number of premiums paid under the policy and the number of premiums payable under the policy. Such a reduced paid up policy will not be entitled to participate in future bonuses.
- Can I take a policy loan?
A policy becomes eligible for policy loan after completion of three premium-paying years and when it has cash value. Granting of policy loan is subject to the policy contract provisions depending on the nature of the product. Policy loans cannot be taken for some types of plans.
- How can I take a loan against my policy?
If an individual has a life insurance policy that has a cash value, he/she may be able to obtain a policy loan from the insurance company provided the insurer offers the loan facility under such policies.
It is necessary to submit the duly filled loan application form, the original policy document & to assign the policy in the favour of Tata AIA Life Insurance Company Limited.
- What is surrender value?
Surrender value is the amount or cash value payable by the insurance company to the policy owner at his/her written request for policy surrender. Participating policies become eligible for surrender value after a completion of three premiums paying years.
- How does one surrender the policy?
If premiums are paid for at least three consecutive years, the policy acquires a Surrender Value. All the insured needs to do, is to submit a duly filled Surrender Request Form & return the original policy document. Once the policy is surrendered, the contract is terminated.
- What is transfer or assignment of a life insurance policy?
This is nothing but transfer of ownership of the policyholder to another person. Eg: As a collateral security for loans.
It is the means whereby the beneficial interest, right and title under a policy get transferred from the assignor to the assignee. 'Assignor' is the policyholder who transfers the title and 'Assignee' is the person who derives the title from the assignor.
- When can one assign a policy?
Assignment can be made only after acquiring the policy. Assignment can be done only for consideration - for money or money's worth or good, moral and meritorious consideration like, love and affection. A duly filled assignment form & original policy document are required to assign the policy.
- How can I make an assignment or transfer of a life insurance policy?
Assignment can be done by mere endorsement on the policy or by a separate duly stamped deed. Assignment is to be done by the policy owner. No assignment of policies is allowed for Juvenile Cases.
- What are the pre requisites for a valid assignment?
- Assignor must be a major
- Assignor must have an absolute right over the policy
- Assignment must be in writing on the form prescribed by the Company
- Notice of assignment is to be submitted to the insurer
- What are the types of assignments?
There are two kinds of assignments.
- Conditional Assignment: An assignment made in favour of a person so that the interest in the policy shall pass to that person on the happening of a specified event during the lifetime of the insured and an assignment in favour of the survivor(s) of a number of persons. Fulfillment of the condition does not depend on the will of the assignor. Conditional assignment is usually effected for consideration of natural love and affection.
- Absolute Assignment: An absolute assignment transfers to the assignee all rights, title and interest, which the assignor has in the policy without any defeasance clause. Under such an assignment, the policy vests absolutely in the assignee and shall form part of his estate on his death. Absolute assignment is usually affected for valuable consideration.
- What are the rights of an Assignor/Assignee?
In absolute assignment of the policy, the assignor (life assured / policy owner) loses his right over the policy and the assignee gets the right and becomes the owner of the policy.
A valid assignment once made cannot be cancelled. However, the policy can be re-assigned to the original policy owner and all original rights are restored to him/her In all cases, assignment automatically cancels the nomination. However, if the policy is assigned to the insurer, (i.e. while taking a policy loan) then nomination is not cancelled automatically.
Under conditional assignment, if the conditional assignee dies, the benefit under the policy goes back to the life assured if surviving. Otherwise, the benefit goes to the policyholder's nominee. Under absolute assignment, if the absolute assignee dies, the benefit under the policy goes to the legal heirs of the assignee.
- What is Nomination?
Nomination is the process of identifying a person to receive the policy money in the event of the death of the policyholder.
The nominee can also be a minor but an appointee (who is a major) has to be appointed until the minor nominee become major. It is the duty of the nominee to ensure that the policy monies are paid to the legal heirs of the life assured.
- Can I change my nomination?
The policy owner can change the nomination any time during the term of the policy and any number of times. For this, the policy owner has to give a notice in a prescribed form to the insurer.
- Can Nomination be done at any time?
Nomination is usually done at the inception of the policy by providing details of nominee in the proposal form. However, if the nomination is not done at the inception of the policy, the policyholder can nominate at a later date. This nomination has to be effected by giving notice in a prescribed form to the insurer and getting it endorsed on Policy Bond.
- What are the pre-requisites for a valid nomination?
Nomination can be done only on policies where the policy owner & the insured are one and the same person. The policy owner does nomination. In the case of juvenile policies, the nomination cannot be done until the child becomes a major.
- What are the rights of a nominee?
Under nomination, the nominee gets only the right to receive the policy money in the event of the death of the policyholder. Nomination does not pass on the property in the policy.
If nominee dies when the policyholder is still surviving, then the nomination would be ineffective. Nomination has no effect if the policyholder is surviving.
If the nominee dies after the death of the policyholder but before receiving the policy money, then nomination becomes ineffective and only the legal heirs of the policy owner can claim money.
- What is difference between nomination and assignment?
While the nomination is an authorization to receive the policy money in the event of the death of the life assured, it does not give the nominee an absolute right over the money received. Further, the nomination can be revoked or cancelled at any time during the lifetime of the policy owner by a subsequent assignment.
On the other hand, assignment of an insurance policy is a transfer or assignment of all rights and liabilities to the insurance policy in favour of the assignee and cannot be revoked. However, the policy can be re-assigned in favour of the insured at the written request of the assignee.
- What if one loses the policy?
A policyholder can apply for a duplicate policy document. To get this document, he/she will have to submit a Policy Lost declaration form, indemnity bond on a Rs. 200/- stamp paper and make a payment of Rs. 250/- in cash or cheque or demand draft as processing fees.
- What is a maturity claim?
The payment to the policyholder at the end of the stipulated term of the policy is called maturity claim
- What happens if I do not make my premium payment on time?
This depends entirely on the policy terms & conditions. In most cases, a policyholder is expected to pay his premiums on the due date. However, a grace period of 31 days is allowed for policies having payment mode as Quarterly, Semi annual or Annual and 15 days for policies on the monthly mode.
- What is Lapsation?
This depends entirely on the policy terms & conditions. In most cases, a policyholder is expected to pay his premiums on the due date. However, a grace period of 31 days is allowed for policies having payment mode as Quarterly, Semi annual or Annual.
- When does a policy lapse?
If a premium is not paid on time or within the specific grace period, the policy will get terminated or lapse.
- What is revival?
Once all outstanding premiums are paid and a Health Certificate (if required) is submitted within a period of 5 years from the last unpaid premium due date, a policy gets reinstated or revived, and the life cover restarts from the date of revival.
- How do I revive my policy that has lapsed?
If the insured's policy has lapsed because of non-payment of premium within the specified due date, he/she can re-apply to reinstate it, if:
- He/she applies within 5 years from the date of the first unpaid premium and before the maturity date. (InvestAssure Gold has a revival period of only 2 years)
- He/she pays all the required premiums and interest
- He/she gives Tata AIA Life satisfactory evidence of health at his/her own expense
The reinstatement will take effect only if Tata AIA Life accepts the insured's application. Tata AIA Life Insurance Company Ltd. will notify its acceptance to the insured.
- What is the maximum time allowed to reinstate a lapsed policy?
A policyholder can revive his lapsed or discontinued policy within 5 years from the due date of his unpaid premium.
- What is a Savings plan?
A savings plan is an ideal term & endowment plan that saves your funds and pays you a lump sum amount for your future needs. It not only saves and invests your funds but also offers you a life coverage at a low cost.
- Do I need a Savings plan?
If you are seeking life coverage at an affordable cost and also want your funds to grow steadily, you can purchase a savings plan.
- What are the benefits that I can avail under Savings plan?
Savings plan entitles you to a lifetime income after a specific period of time. The income is a certain percentage of the sum assured. Besides, you also earn dividends, bonuses, etc. In unfortunate events like death or disablement, the nominee receives the sum assured.
- Do I get any tax redemption on buying a Savings plan?
Yes. All premiums that you pay for savings plan are eligible for tax redemption under section 80C and 10(10D) of the current Income Tax laws.
- What is a Wealth plan?
A Wealth plan is a savings cum investment plan that is designed to help individuals and families save funds in a tax-advantaged way and at the same time get maximum return from the market. Wealth plans not only offers attractive investment options but also provide you life insurance coverage that supports your family in case of unforeseen events.
- Who is eligible to buy a wealth plan?
A person aged 18 or above can buy wealth plans. Alternatively, if you have attained the age of 18 you can also buy a wealth plan for your child.
- What is ULIP?
ULIP stands for Unit Linked Insurance Plan, that lets an investor, make a single investment for both - insurance and market linked returns.
- How is a unit-linked insurance plan different from a regular life insurance plan?
While investing in Unit Linked Insurance Plans, the investor needs to understand that these are different from the standard insurance plans which have a fixed sum assured.
Unit linked insurance plans are risk products that are linked to the market and have a minimum sum assured attached.
- Do ULIPs help me in savings?
ULIPs are structured in such a way that the protection (insurance) element and the savings element can be distinguished by the investor, and managed according to one's specific needs with reference to sum assured, risk cover, returns; all accompanied by unprecedented flexibility and transparency.
- Are ULIPs long term or short-term investment options?
ULIPs, like all other life insurance policies, are long-term products, designed for the dual purposes of protection and long-term savings. In fact, if an investor has purchased a ULIP with a short-term perspective, he/she may end up stuck with relatively high initial charges.
- Why should I opt for ULIP?
ULIPs offer the Indian investor the benefits of transparency and flexibility. While today ULIPs are still being tried and tested, they are rapidly proving themselves as the preferred second and third insurance policies in the portfolio after the basic risk cover is taken care of.
- Are there different kinds of unit linked insurance plans?
Unit Linked Plan varies in investment type to match the investor's appetite for risk. He/She can invest in Equity, Aggressive Growth, Stable Growth or Debt funds. Depending on which risk type he/she selects, the investor's funds will be invested in gilts, bonds, stock markets, equities, and other appropriate financial instruments by expert fund managers.
- How does a ULIP work?
With a ULIP investment, when the market is bullish, the investor's fund value would go up. But if the market crashes he should know what to expect. These products after deducting management expenses, invests the policyholder's money in funds such as Equity, Aggressive Growth, Stable Growth Debt and/or Short Term Fixed Income as per the investor's choice.
Hence, when an investor invests in a ULIP, he/she should be aware that he/she is playing with his/her risk cover. Moreover, it is recommended that the investor hold his/her ULIP investments for a longer period of time.
Note: Investments are subject to market risks. Past performances are not a guide to future results.
- What is NAV?
NAV or Net Asset Value stands for per share market value of a particular fund. NAV denotes the price at which an investor buys and sell fund shares from a company.
- What is Fund Value?
Fund Value refers to the monetary value of a fund. The valuation is done by multiplying total number of shares under the policy with the NAV.
- What should I check before committing my money to a Unit Linked Insurance Plan?
Before finalizing on a ULIP of his/her choice, the investor should check out the various charges associated with it. Typically, these include an investment fee, a policy loading fee, fund switching charges, policy administration fee, entry load etc. to name a few.
- Can I change my investment fund option?
Tata AIA Life Insurance Company Ltd understands that as an individual investor goes through life, his/her premium allocation reference may change over time. To facilitate that need, the investor is allowed to change the investment fund option. However he/she may be charged a nominal fee (if any) as mentioned in the policy contract.
- Can I withdraw partial funds in case of need? When can I withdraw?
Yes, you can withdraw partial funds from your policy after the completion of three years.
- What does switching of funds mean?
When you invest money in a wealth plan, your money buys shares in one or more types of funds. Purchase and sales (fund allocation) is done considering the ups and downs of the stock markets. Switching of funds allows you to allocate your investments from one to more funds as per your needs and desires.
- Why should I switch funds?
If you are not satisfied with the performance of your current funds you can switch your funds. This facility helps you to spread your investments around different funds so as to get maximum return from the market.
- How do I track the performance of my policy fund?
A unit-linked insurance policy provides the policyholder/investor with greater transparency than the traditional life insurance policy. In a traditional policy he/she is not aware of how his/her money is invested, where it is invested, what is the value of his/her investment, etc. In a Unit Linked Policy the underlying investments made by the policyholder are clearly identifiable and determine its cash values (Net Asset Value).
NAV listings are published on a regular basis in the mainline publications, which will help the policyholder/investor to check the performance of his/her fund. A quarterly newsletter is sent to the policyholder that provides them with a detailed analysis of the Fund performance.
- What is the Cost of Insurance (COI)?
Cost of Insurance is yearly renewable cost of providing term insurance. This is also known as Mortality Charge.
Further, the insurance companies are also required to maintain their solvency margins depending on their volume of business. The minimum solvency margin required to be maintained by any insurer is Rs. 50 crores.
- What is a premium holiday?
After the payment of two annual premiums (for InvestAssure) / three annual premiums (for InvestAssure II & InvestAssure Gold), if the renewal premium is not received from the policyholder within the Grace period, the policy will go on a Premium Holiday. During this period, applicable Premium Holiday Charge will be deducted from the fund value along with the Administration & Cost of Insurance Charges, and the policy will be kept 'In Force'.
The policy will remain on a premium holiday until the Fund Value reaches a certain limit as decided by the company, or until the policyholder recommences paying the premium, whichever is earlier.
- Do I get any tax redemption on buying a Wealth plan?
Yes. All premiums that you pay for a wealth plan are eligible for tax redemption under section 80C and 10(10D) of the current Income Tax laws.