Question 1

Why should I buy life insurance policy?

Accepted Answer

There are many reasons to buy a life insurance policy. However, some of the most important reasons are that an insurance policy acts as a financial safety net, it serves as a savings tool, and sometimes you can choose a plan that is good for investment purposes too.

Question 2

How can I determine whether I need life insurance plan?

Accepted Answer

If you are the sole earning or dominant earning member of the family, you should definitely consider buying an insurance plan.

Question 3

Why is life insurance policy important?

Accepted Answer

Life insurance is important because it gives financial protection to your loved ones in case of your death. It can help you achieve your life goals by supporting you in building a financial corpus with the protection of a life cover.

Question 4

How to Buy Life Insurance plan?

Accepted Answer

You can easily buy life insurance plans online or offline as per your convenience. If you wish to buy life insurance online, you can visit the official website of the insurance provider and get the required plan.

Question 5

Do I get money back if I cancel my life insurance?

Accepted Answer

This depends on the type of insurance policy you have. You don't get money back after cancelling term life insurance unless you cancel during the free-look period. You may receive some money from your cash value if you cancel a whole life insurance policy; however, any gains are taxed as income.

Question 6

What are the advantages and disadvantages of life insurance?

Accepted Answer

Following are the advantages of life insurance :

Life insurance facilitates infusion of money for dealing with the adverse financial consequences of the insured’s death.
Tax benefits comes with life insurance as per current tax laws. However, these laws are subject to change from time to time. Please discuss this with your tax/insurance advisor before buying the plan.
Several life insurance policies are flexible in terms of adjusting to the policyholder’s requirements.

Following are the disadvantages of life insurance :

A constant expenditure is required in terms of policy premium. Also, life insurance is ideally purchased for the benefit of others/insured’s beneficiary and usually only indirectly for the insured person.
The decision making and execution of getting a life insurance policy can be a complex process.
Some insurance providers make the process of claim settlement a little difficult. Please check the claim settlement ratio of the provider before buying the insurance policy.

Question 7

Do I need a medical exam to get life insurance coverage?

Accepted Answer

Yes, you need a medical exam before buying a life insurance plan. Medical exam is form of assessment of the risk that your insurer will be bearing by providing you with a life insurance coverage. However, some insurance providers provide life insurance without a medical examination depending on the policy chosen.

Question 8

Why consider Bharti AXA Life Insurance?

Accepted Answer

You should definitely consider getting an insurance policy from Bharti AXA Life as we provide flexible products. You can easily change your coverage limits and include riders with your insurance policy in minutes. You can access your account anytime from anywhere. With an impressive claim settlement ratio and dedicated claim handler for the policyholder, our claim settlement process is seamless.

Question 9

Can I cash out life insurance policy?

Accepted Answer

It depends on the type of insurance policy. If it’s a term insurance policy, then you can’t cash it out. However, generally you can withdraw money from the policy on a tax-free basis, but only up to the amount you've already paid in premiums.

Question 10

What all does life insurance cover?

Accepted Answer

Generally, a life insurance policy is designed to pay out the sum assured to your loved ones if you die while covered by the policy. However, some insurance policies also provide disability cover. You can also add various riders to your existing insurance policy by paying extra cost and enhance your range of coverage.

Question 11

What happens if someone outlives a life insurance policy?

Accepted Answer

If someone outlives a term life insurance then nothing is paid out. However, through a return of premium benefit, the insured can get back their premiums but higher charges are levied as compared to a normal term insurance policy. On the other hand, if someone outlives a regular life insurance that provides maturity benefits then, the life insurance provider offers the sum assured along with bonuses (if applicable) when you survive the policy tenure.

Question 12

What is Life Insurance?

Accepted Answer

Life insurance is a contract between an insurer and a policy owner. A life insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured dies in exchange for the premiums paid by the policyholder during their lifetime. Life insurance is a key investment, especially in uncertain circumstances, like the present. Life insurance policies work in three stages :

Purchasing a life insurance policy
Buy the best life insurance policy that offers flexibility of benefits. Other factors to consider are plan tenure, premium, riders, and, most importantly, the reason you are buying life insurance.
Premium payment
It is advisable to choose a premium that you can easily pay on time. As per the life insurance contract, the insurers promise to pay a pre-decided amount to you (policy holder) or your nominee, provided all premiums have been paid. All benefits then are based on timely premium payment.
Filing a claim
The last stage of a life insurance plan is related to filing for a claim to get insurance benefits.

In case of your unfortunate demise, your nominee will be eligible for the sum assured as defined in the contract. To get it, the nominee has to submit a claim form along with various documents. Upon verification of claim, the insurance company releases the benefit to the nominee.

For life insurance plans with a return of premium, a total of all premiums is paid back if the insured survives the policy term, which can be a great financial aid in the short or long term.

Question 13

How much life insurance cover do I need?

Accepted Answer

As a rule of the thumb, your life insurance cover should be at least 10 times your annual income. For example, if your annual income is ₹8 lakh, your life insurance cover should be at least ₹80 lakh. Although 80 lakh - 1 crore can seem like a huge sum, you can get it for a monthly premium as low as ₹1000 (for a 30-year-old non-smoker). Your medical bills are also likely to go up with time, and so a substantial amount is needed to cover future medical costs.

Question 14

What are the benefits of buying life insurance?

Accepted Answer

Life insurance offers three major benefits.

Protection
Life is full of uncertainties; investing in a life insurance plan provides a safety net. Your insurance provider is liable to pay your beneficiary or nominee the pre-determined death benefit, thus keeping your family protected even in your absence.
Long-term savings
It is important to consider life insurance if you are seeking to make long-term savings. The suitable product helps you to save systematically and build a corpus for your future; its accumulated amount may be used for your life goals. What’s more, life insurance plans also offer regular pay-outs in the form of annuities, and are therefore, an excellent tool to finance your retirement goals.
Investment
Unit-Linked Investment Plans (ULIPs) offered by life insurance providers are primarily investment instruments. These market-linked products create wealth. ULIPs offer significant returns on premiums paid towards the insurance policy. Most plans provide considerable returns during maturity, thus making them an attractive investment vehicle.

Besides this, life insurance plans offer a host of other benefits, like tax deductions under Section 10, 80C, and 80CCC of the Income Tax Act, 1961 on the premium paid. You may also borrow a loan against your insurance plan if needed.

Life insurance plans provide financial support to you and your family. Buying an insurance policy also inculcates the habit of disciplined savings.

*IN ULIP POLICIES, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. The premium paid in Unit Linked Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.

Question 15

What are the types of life insurance plan?

Accepted Answer

There are basically five types of life insurance plans: savings plan, protection plan, wealth creation plan, retirement plan, and child plan.

Question 16

Is it mandatory to buy life insurance?

Accepted Answer

It is not mandatory to get a life insurance. However, it is advised to buy a life insurance to have that financial safety for your loved ones, in case of any mishap.

Question 17

What is the best reason to buy life insurance?

Accepted Answer

The best reason to buy a life insurance is to protect or manage the financial needs of your loved ones, in case of an unfortunate event. Also, it can be used as a tool for smart investments.

Question 18

Should you buy multiple life insurance policies?

Accepted Answer

This completely depends on your needs. With increased responsibilities of families, bigger financial needs, you can go for two insurance policies to suffice the risen needs. You can get one term plan and one wealth creation policy to meet increased lifestyle needs and added responsibilities.

Question 19

Is it worth buying a life insurance for investment?

Accepted Answer

Life insurance is a good investment tool. There are multiple policy types like ULIPs that allow you to get a high return potential and guaranteed return plans that offer safe and risk-free returns. However, returns are subjected to market risks.

Question 20

How much does life insurance cost?

Accepted Answer

The cost of life insurance depends on the type of policy you take, the amount of premium you pay, the sum insured, your age and the benefits you expect to receive when your policy matures. Different types of life insurance plans and different types of life insurance policies have different costs.

Question 21

What are the 5 main reasons to buy Life insurance policy from Bharti AXA?

Accepted Answer

Following are the reasons to buy life insurance policy from Bharti AXA:

Bharti AXA Life has a wide range of products to satisfy your insurance related requirements.
You have the flexibility to change your cover limits (for certain products) and add riders to your insurance plan. Riders are not mandatory, and available at an additional cost.
You have the convenience to access your account anytime from anywhere.
Bharti AXA Life has an impressive claim settlement ratio.
A dedicated claim handler is provided for seamless claim settlement.

Question 22

How life insurance policy will be helpful in future plan?

Accepted Answer

Different types of life insurance policies such as ULIPs and Guaranteed Return Plans not only provide life coverage but also help you build a corpus for life's important milestones such as children's birth, education, marriage, and help you plan for your post-retirement years as well. Also, a term policy will ensure financial security for your loved ones and help them meet their daily expenses with a large cover at comparatively lower premiums than other policies.

Question 23

Does life insurance cover natural death?

Accepted Answer

Generally, life insurance policies cover deaths from natural causes, accidents, and all those types of deaths as covered by the concerned policy. However, if you provide inaccurate information on your claim application, your insurer could deny to pay the sum assured to your beneficiaries, in case of your death.

Question 24

Benefits of buying life insurance policy?

Accepted Answer

Following are some benefits of life insurance policy:

Life insurance provides peace of mind due to the financial security it offers, to your loved ones, in case of your untimely demise.
Life insurance provides tax benefits as per current tax laws. However, these tax laws are subject to change from time to time.
Some life insurance plans can be used as an investment tool also offer you the opportunity to create wealth. Apart from life cover, these policies invest your premium in different investment classes to deliver superior risk-adjusted returns that can help beat inflation and grow your corpus.

Question 25

How can life insurance help in planning for child’s education?

Accepted Answer

You can go for a child education plan that offers comprehensive benefit of life insurance cover along with maturity benefit. It can help your child sustain the expenses of their future educational needs, even when you are not around. Some plans also provide waiver of premium benefit to help your child live a stress-free life in your absence.

Question 26

How can life insurance help in planning for child’s wedding?

Accepted Answer

An endowment plan can help you save for important life scenarios such as your child’s wedding. There are many plans available in the market that allows you to save money over a period of time while providing life coverage. Generally, in such plans the insured typically receive a lump sum pay-out upon maturity. Some plans also provide waiver of premium benefit to help your child live a stress-free life in your absence.

Question 27

How can life insurance help in retirement planning?

Accepted Answer

Life insurance can be ideally used as a tool for retirement planning. Long term plans can be helpful and affordable at the same time. You can go for Money Back and Annuity plans that ensure a steady stream of income after retirement.

Question 28

What is goal based financial planning?

Accepted Answer

Goal based financial planning is the process of realizing different goals, quantifying those goals, factoring in the effect of inflation and market scenario on those goals, and then finally choosing the right investment plan in sync with the plan. Basically, it emphasizes on investing with the objective of fulfilling specific life goals.

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