FREQUENTLY ASKED QUESTIONS
- What is Life Insurance?
Life insurance is a contract under which the company guarantees of financial compensation for death, disability, illness or maturity value for which an insured agrees to continue the payment of premium for a specified period of time.
- What are the two main types of life insurance policies?
Nowadays, you can find many life insurance products in the market. However, the two major life insurance products are:
- Participating Products(Par)
It is a product which pays the Sum Assured at maturity and bonus to Policyholders based on company’s surplus or death benefit. This type of product includes Whole Life, Endowment, Money Back, Child Endowment plan etc.
- Non Participating Products(Non- Par)
These Products cover only risk of the policyholders for the insurance period.
- Why is Life Insurance very important?
Life is uncertain and risks are certain. With life insurance, we cannot totally avoid the risk but we can minimize it to a great extent. You get peace of mind from life insurance as you can be sure that the very important people in your life (dependents) will remain financially secure in case of your unfortunate death.
Life insurance provides you financial protection in your old age and enables you to have a comfortable retirement. Life insurance also provides tax saving benefits.
- What does Life Insurance cover?
Basically, life insurance provides death benefits (financial protection) to surviving dependents after the death of insured. The policy covers loss of income, funeral costs and other financial needs that a family may have in case of policyholder’s death. Nowadays, life insurance policies come with securities elements as well that help the policyholders to live a financially independent future.
- What are Life Insurance Riders?
Riders are offered by insurance companies to policyholders to allow policyholders to customize their policies as per their need. Riders are additional benefits under an existing insurance policy that provide additional coverage. There are many riders. Some common ones are:
- Accidental Death Benefit Rider
- Waiver of Premium Rider
- Disability Income Rider
- Critical Illness Rider
- How can I determine the Life Insurance that I should get?
To determine the insurance amount (sum assured) that you need, you must take the following factors into consideration:
- What is the financial load that my family will have to bear in case of my absence?
- What is the age of my dependents and how long will it take for them to be financially independent?
- What is my financial need for my own retirement period?
- What is my family’s financial need for future period?
- Do I need to have a medical examination for Life Insurance?
It depends on Age and Sum Assured. Please contact our office or field representative for further details.
- Can I hold multiple life insurance policies?
Yes, you can. Doing this can be an option for you if you need additional cover.
- Why should I choose Citizen Life Insurance?
Citizen Life Insurance is always committed to serving its customers in the best way possible. We respond quickly to customer needs. We are always working to improve our processes and make it easier for our customers to collect claims, make payments and so on. Also, when helping the customers decide the insurance policy that suits them, we give first priority to their needs and interests. We can proudly say that our major focus is the well-being of our customers.
- How can I insure myself with Citizen Life Insurance?
Doing this is very easy. You can come to any of our branches and get the policy you need. You also can call us or contact our consultants to know more about our policies.
- What are the policies sold by Citizen Life Insurance?
The policies that we are currently selling are:
- Citizen Jeevan Saarathi Yojana
- Child Future Life Insurance Plan
- Citizen Regular Pay Endowment Insurance Plan
- Citizen Regular Pay Money Back Insurance Plan
- Foreign Employment Term Life Policy
- How much premium should I pay and when should I pay the premiums (Cost of Life Insurance)?
The insurance amount (sum assured) is the major factor that determines your premium. Other important factors are considered as well when calculating premium such as your sum insured,age, occupation, health status, mode of payment, etc.
In Citizen Life Insurance, you can pay your premiums in yearly or half yearly or quarterly basis as you have stated in your proposal form.
- Can I change my nomination/beneficiary?
Yes, you can change your nomination at any time within the policy term. You just need to inform Citizen Life Insurance about the change by filling the specified form. Once the change is done, the company will issue an endorsement and provide you with the written notice.
- Can I change my policy’s mode of payment?
Yes, you can. You just need to inform us about the change through the specified form.
- When does a policy lapse and how to reinstate a lapsed policy?
If the policyholder fails to pay the premium even within the grace period of 30 days for yearly, half-yearly or quarterly mode of payment, the policy lapses and the risk will not be covered.
However, you can reinstate your lapsed policy by:
- Filling up a declaration of Good Health Form
- Paying outstanding premiums together with the interest charged on outstanding premiums
Note: The Company has the right to decide other terms and conditions while reinstating a lapsed policy.
- When will the company pay sum assured along with other benefits?
This will be done in case of:
- Maturity of the policy
- Death of the insured
Note: Different documents need to be submitted for Maturity Claim and Death Claim.
- How long will the company take to settle the claim if all the requirements are fulfilled?
After submitting all the necessary documents that Citizen Life Insurance will require, the company will determine the liability within 15 days from the date of receipt of such documents [As per Insurance Regulation 2049 (1993), rule-31, sub-rule (4)].