Life Insurance protection comes in many forms, such as Unit
Linked, Endowment, Money back, Term etc. Understanding
the exact requirement and recommending a right solution
with the right product is JBB's forte. Being amongst the
oldest brokers in India, a long standing relationship with all
Insurance Companies allows JBB to research, advise,
customize and negotiate with underwriters for most suitable
Insurance solution at the best price.
Individual Life Insurance options include:
- Whole Life Insurance Plans
- Term Life Plans
- Money Back Plans
- Endowment plans
- Unit Linked Plans (ULIPs)
- Pension plans
Life Insurance FAQs
Which are the Traditional Life Insurance products available?
Traditional Life Insurance products consist of Term Life,
Endowment and Whole Life Policies. You can benefit from
such products as they have a cash value (except term
policies) which increases every year as you pay premiums.
Some traditional life policies are participating, meaning they
acquire bonuses. You can also get a tax benefits and more
over the premium on traditional life insurance is level
throughout the term of the policy.
What is the difference between a participating and non-participating policy?
A participating (or with profits) policy would enable the
policyholder to share in the profits of a life insurance
company, while a non-participating (or without profits)
policy does not have this right. Profits that are allotted to
the participating policyholders are usually in the form of
reversionary bonuses. These bonuses are not guaranteed
and can increase or decrease depending on the investments
returns of the life funds. Once bonus is declared, it becomes
How does a life insurance company evaluate my risks?
The risk class or mortality of a policyholder is determined by
an underwriting process through which a life insurance
company would decide whether or not to accept a risk. The
risk of death is determined by several factors such as age,
gender, occupation, habits, personal and medical history
etc. The life insurance company's decision to insure your life
is based on the information provided in the application
form, the medical examination report (if required) etc. Be
truthful whilst filling in your form so that the life insurance
company can be fair in its assessment of the risks involved.
Can I get full refund of premium if I cancel my policy within the free look period?
Yes, under the free look period, you can cancel your life
insurance policy within 15 days by returning the policy to
the life insurance company after you have received the
policy document. Refund of premiums can be made after
deducting first stamp duty, medical fee and proportionate
risk premium for the period of cover if any.
Is a life insurance sales illustration a legal document, like a contract??
A sales illustration is not a legal document. Legal obligations
of a life insurance policy are spelled out in the policy itself.
Therefore, a policyholder must read the fine print of the
contract carefully to ensure that he/she understands the
exact nature of the policy, the risks that are covered as well
as the limits or exclusion clauses, before signing the
What will happen to my policy if I fail to pay my premium on time?
The policy contract provides for a 'grace period', which gives
the policyholder an additional period of time after the due
date for the payment of the premium. During this period,
you can still pay your premium and the life policy still
continues to be in force. For monthly mode of payment, the
grace period is usually 15 days, while for other frequency of
payments (semi-annually or annually), it is usually 30 days. If
you are not paying the premium within the grace period
your policy can become lapse or eligible for reduced
benefits (paid up) depending on number of premiums paid
and type of policy.
When your life insurance policy has lapsed, you may revive
or reinstate the same under certain conditions such as
declaration of your state of health at the time of
reinstatement and payment of arrears of premiums with
How much will I receive if I surrender my life insurance policy?
When a life insurance policy is in force for a certain number
of years (normally a minimum of 2 years for 10 year term
and 3 years for a term of more than 10 years) it would
acquire a cash value. The cash value is the 'savings' portion
of a life policy. It is derived when your premium payments
are more than the cost of insurance, whereby the excess
goes into a cash value account and draws interest. If you
decide to surrender your life insurance policy, the life
insurance company will pay you the cash value, also known
as surrender value. The amount of surrender value depends
on number of years of premiums paid and number of years
premiums payable. You will suffer a loss if you surrender
your policy before the maturity period.
Should I cancel my existing policy and replace it with another?
Since buying a life insurance policy is a long-term
commitment, it is not advisable to terminate your policy
early as you will not receive the total amount of premium
that you have paid because the surrender value is usually
less than what you have paid. Replacing an existing policy
with another is not in your best interest because the new
policy is likely to be at a higher premium as you are older.
There will also be an initial cost of writing the life insurance
policy for a second time. Additionally, the two-year period of
contestability will begin again. Furthermore, the present life
insurance company can often make the changes that you
want at lower cost to you.
How do I make a claim?
You should fill out a claim form and contact the financial
adviser from whom you bought your policy. You need to
submit all relevant documents such as original policy
document to your insurer to support your claim. If your
insurer can settle your claim, you will be issued a cheque or
transfer of funds to bank account generally within 7 days
from the time they receive all relevant documents. However,
if your insurer is unable to deal with all or any part of your
claim, they will explain to you in writing.