Frequently Asked questions (FAQs)

Why Life Insurance Terms are long?

It is because it’s Life insurance and human life span is long anywhere between 60 to 100. So it has following very much required long term benefits accordingly.

1. Possible death may happen at anytime in this long span and financial protection of your young dependents for long term is a necessity.

2. As people have to pay tax every year in 30+ years of career, long term insurance saves 10% to 30% Income tax every year so, it’s definitely long term benefit.

3. In savings, power of compounding works wonders by accumulating large sum of money for long term goals like pension, children’s education, marriage, housing etc.

 

What happens If I am unable to pay premium for any reason?

Generally, it is 3 years lock in period for any policy.  So you have to pay premium at least 3 years.

after that you are unable pay premium for maximum of 3 years, but you are interested to continue with policy then status of policy will be lapsed but you can revive your policy by undergoing medical tests and pay premium with penalty and continue with policy.

 

What if I want to discontinue policy and get my money back?

In LIC it’s 3 years lock in period so you have to pay premium for at least 3 years and after that you can surrender the policy.

When you surrender, LIC will give 80% of premium you have paid so far, because of below 2 reasons

1. You were covered with 3 years of Life Insurance protection so 20% is premium for those 3 years of coverage.

2. You have saved income tax upto 30% which is a big saving in your income.

So ideally there is no single rupee loss in it, it’s a profit all in all for you.

 

Do I need to stand in Queue to pay premium?

No, it’s the era digital payment, you have many option as below

1. You can login to licindia.in to pay premium from your computer.

2. You can give NACH mandate to directly debit money from your account on specific date.

3. You can pay in nearest LIC office OR nearest LIC premium paying centre.

Call us @ 9901422522, Bengaluru.  Mail id: Swetha.Tejasvi@gmail.com