Page 14 - LIFE INSURANCE TODAY Novemver 2017

Frequently Asked Questions on

Conventional Life Insurance

Q. What should I look for before Electro Cardiogram, Glucose Tolerance . To this sum assured the bonus already
I decide to buy a policy? test etc could be required, while for vested (accrued) before the policy
A. You must check and see whether underweight proposers, X-ray of the lapsed, is also added. Example if the
or not there is availability of guaran- chest and lungs with reports could be bonus accrued up to the date of lapse
tee of return, what the lock in period required. is 35,000/-, the total paid up value is
is, details of premium to be paid, what 50000 + 35000 = 85000.
would be implications of premium Q. What is meant by Paid-up Q. How is Surrender Value cal-
default, what the revival conditions Value in Conventional Life Insur-
are what the policy terms are, what ance Policy? culated in Conventional Life In-
surance Policy?
are the charges that would be de- A. After premiums are paid for a cer-
ducted, would loan be available etc. tain defined period or beyond and if A. Surrender Value is allowed as a
subsequent premiums are not paid, the percentage of this paid up value. Sur-
Q. What is the importance of a sum assured is reduced to a propor- render value is calculated as per the
proposal and the disclosures tionate sum, which bears the same ra- surrender value factor, which depends
tio to the full sum assured as the num- on the premiums paid and elapsed
made therein?
ber of premiums actually paid bears to duration.
A. The disclosures made in a pro-
the total number originally stipulated in
posal are the basis for underwriting a Q. How is the Loan on Policy cal-
the policy. For example, if sum assured
policy and therefore any wrong state- culated under Conventional Life
is 1 lakh and the total number of pre-
ments or disclosures can lead to denial Insurance Policies?
miums is payable is 20 (20 years policy,
of a claim.
mode of premium is assumed yearly) A. If the policy conditions permit
and default occurs after 10 yearly pre- grant of loan, loan is sanctioned as a
Q. What are special medical re-
miums are paid, the policy acquires the percentage of the Surrender Value.
ports required to be submitted in paid up value of 50,000/-.
Life insurance? Q. What are the requirements
A. In case of certain proposals, de- Paid up Value = No. of Premiums Paid to be submitted in case of a Ma-
pending upon the age of entry, age at / No. of Premiums Payable X S.A=10/ turity Claim?
maturity, sum assured, family history 20 X 100000 = 50000/-. This means A. Usually the Insurance Company
and personal history, special medical that the policy is effective as before will send intimation attaching the dis-
reports may be necessary for consid- except that from the date the 11th pre- charge voucher to the policy holder at
eration of a risk. E.g. if the proposer mium was due, the sum assured is
is overweight, special reports like 50,000/- instead of original 1,00,000/- Continued in Page 23

Never be afraid to laugh at yourself, after all, you could be missing out on the joke of the century.

14 November 2017 Life Insurance Today

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010