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Why should I buy life insurance?
A life insurance policy can be a very inexpensive way to replace your income in the event of your death. It could be viewed as a long-term investment to provide for your child's future expenses or your expenses, post retirement.

Do I need insurance?
Family that is financially dependent on you: The most common reason to buy life insurance is to replace the income lost when you die.

Loans or liabilities: It is very important to insure yourself if you have taken a loan or mortgaged your assets.

Compulsory saving-cum-investment: A life insurance policy could be used as a compulsory saving-cum-investment avenue.

Partner in a firm or Self-employed: It is highly needed by people who are partners in a firm or have their own proprietor firms. Life insurance can be a critical component for specialized business applications - such as funding a buy-sell agreement.

Whom should I insure?
It is necessary to know the following terms in order to understand a life insurance policy:
  • Breadwinner
  • Working spouse
  • Children
  • Partner/Key-person in the organisation
When should I insure?
The minute you have people dependent on your income, you should insure yourself. The younger the age, the lower is your premium. At SBI-Life, we believe anybody who is married and has children or plans to have children needs to be insured. Even if you are single, earning and intending to marry, you should think of buying a policy now, as it costs less now than it will when you marry.

How much does life insurance cost?
The cost of buying an insurance policy depends on:
  • Your age, health and the nature of work you do.
  • The type of policy you select.
  • The sum assured i.e. amount you insure yourself for.
  • The term i.e. number of years you insure yourself for.
  • The premium paying term i.e. number of years you choose to pay premium .
  • The mode i.e. the frequency with which you choose to pay premium (monthly, quarterly, half-yearly, yearly).
  • The riders i.e. additional benefits you select, their term and premium paying term .
What should be the duration (term) of my insurance policy?
Ideally, the term of your policy should be equal to the number of years your family will be dependent on you financially. However, ensure that your insurance payment period is also equal to the number of years you plan to work (and hence is not a burden for you).

What is group insurance policy?
An insurance policy that provides coverage for a number of people under one contract, called a master contract. In a Group insurance policy, the policy holder is usually the employer who contributes premium which is a certain percentage of the salary of the employees in the Employers organization. However, the employees are the beneficiary in such Group insurance policies. In general, in a group insurance policy the insurance company ordinarily –cannot turn down any applicant that is a member of the defined group.

Should I buy a life insurance policy even if my employer has insured me in a group insurance scheme?
It is always prudent to buy an individual life insurance policy because
a) The amount of insurance you are covered for may not be a very large sum
b) If your employer decides on cost-cutting, you may no longer be insured
c) If you decide to leave your employer, you may no longer be covered
d) The older you are when you buy insurance, the higher is the premium you have to pay for the same insurance.

How often should I update my life insurance?
It’s a good idea to periodically review your insurance portfolio — especially after a major event in life — to ensure it provides the protection you need. Over a period of time, your investment need also to change.

In case of any claim dispute where can my case be represented?
In case of any claim dispute the case can be represented to the insurance Ombudsman. The Ombudsman has judicial powers and can be challenged only in the High Court.

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. 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 lodging the claim. Moreover, in case a claim is ready for payment but the payment cannot be made due to any reasons then such an amount will earn interest at the rate applicable to a savings bank account.
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