Life Insurance

Ans: Life insurance is a contract between you and an insurance company where the insurer provides a lump sum payment (death benefit) to your beneficiaries in exchange for premium payments. It helps provide financial security for your loved ones in case of your untimely demise, covering expenses like loans, children's education, and daily living costs.

Ans: The main types of life insurance include:

• Term Life Insurance: Covers you for a specific period (e.g., 10, 20, or 30 years) and is more affordable.
• Whole Life Insurance: Provides lifelong coverage and has a savings component.
• Endowment Plans: Combine savings and insurance benefits, offering maturity benefits if you survive the policy term.
• Unit Linked Insurance Plans (ULIPs): A combination of insurance and investment in market-linked funds.

Ans: The coverage amount depends on your financial obligations, income, and future needs of your family. A common rule is to have coverage of at least 10-15 times your annual income. Consider factors like outstanding loans, children's education, and future living expenses before deciding.

Ans: If you miss a premium payment, most policies offer a grace period (typically 30 days) to make the payment without losing coverage. If the grace period lapses, the policy may lapse, and you may need to reinstate it by paying the due premiums along with penalties or medical re-evaluation.

Ans: Yes, depending on your policy, you may be able to:

• Increase or decrease your coverage.
• Convert a term plan into a whole life policy.
• Add riders like critical illness or accidental death benefits.
  However, changes may require additional underwriting and may affect your premiums.