F.A.Q.

What is frequently used terms like maturity, premiums etc.?
Insurance - Social device for minimizing risk of uncertainty regarding loss by spreading the risk over a large enough number of similar exposures to predict the individual chance of loss.
Insured - The person whose life is covered by a policy of insurance. Survival Benefit - The payment of sum assured to the incurred person which has become due by installments under a money back policy.
Premium - The payment, or one of the regular periodic payments, that a policy holder makes to an insurer in exchange for the insurer's obligation to pay benefits upon the occurrence of the contractually - specified contingency (e.g., death).
Money Back Policy - The policy holder gets periodic "survivance payments" during the term of the policy and a lump sum amount on surviving its term. In the event of death during the term of the policy, the beneficiary gets the full sum assured, without any deductions for the amounts paid till date, and no further premiums are required to be paid. These types of policies are very popular, since they can be tailored to get large amounts at specific periods as per the needs of the policy holder.
Maturity - The date upon which the face amount of a life insurance policy, if not previously invoked due to the contingency covered (death), is paid to the policyholder.
Maturity Claim - The Payment to the policy holder at the end of the stipulated term of the policy is called maturity claim.
Joint Life Endowment Assurance Plans - The sum assured (plus any accrued bonuses) under this type of policy is payable on the end of the endowment term or on the first death of the two lives assured, whichever is earlier. Typically (though not a necessity) taken out by a couple, a variation is available for couples only. In this case, the sum assured will be payable on first death and then again on the second death (along with all vested bonuses) if both deaths occur during the term of the policy. If one or both lives survive to the maturity date, the sum assured along with all vested bonuses will be payable on maturity date. Premiums during this plan cease on the first death or the expiry of the selected term, whichever is earlier. Another variation provides for annuity to both/surviving spouse, or a lump sum amount to the legal heirs.
Accident - An event or occurrence causing damage/injury to an entity, and is unforeseen and unintended.
Accident Benefit - Provides for payment of an additional benefit equal to the sum assured in installments on permanent total disability and waiver of subsequent premiums payable under the policy.
Group Life Insurance - Life insurance usually without medical examination, on a group of people under a master policy. It is typically issued to an employer for the benefit of employees or to members of an association, for example a professional membership group. The individual members of the group hold certificates as evidence of their insurance.
Family Insurance - A life insurance policy providing insurance on all or several family members in one contract, generally whole life insurance on the principal breadwinner and small amounts of term insurance on the other spouse and children, including those born after the policy is issued
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 is the amount to be invested?
As a thumb rule, if you are 30 years of age, you should insure yourself for an amount approximately 8 times your annual income. At 35, your investment should be close to 6 times your income. Of course, the exact amount of your investment should be determined by the number of people who depend on you, you’re existing investments and your life stage. For example, if you are 30 years of age and have two children and parents to provide for, the amount you invest should be reflective of your requirements.

I already have a health insurance policy. Should I still buy a life insurance policy with the riders?
A health insurance policy covers you for hospitalization costs and post hospitalization for three months. Consider for a moment the enormous medical costs that you might have to incur if you suffered a major injury or were suddenly stricken with a life-threatening illness. The health insurance policy could take care of your hospitalization costs but what about the loss of income? The Critical Illness Benefit rider could help cover your financial losses, while the Hospital Cash Benefit rider could help with your expenditure while you recuperate.