12 Questions You Must Ask Your Life Insurance Agent

Essential Questions to Ask Your Life Insurance Agents

Frequently Asked Questions

Which documents do I need to produce to purchase a life insurance plan?

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Following are some of the necessary documents that you will have to submit to your insurance company while applying for a life insurance plan:

  • Age proof
  • Photo identity proof
  • Residential proof
  • Medical diagnostics
  • Income proof
  • PAN card
  • Passport-sized photograph

Can I get tax benefits on the premium of a life insurance plan?

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Yes, Section 80C of the Income Tax Act of India allows one to get a tax deduction on the premium paid towards a life insurance policy in a financial year. Under this Section, you can reduce up to ₹ 1.5 Lakhs from your gross taxable income in a financial year. However, these tax benefits depend on the prevailing tax regime. 

What is the basic difference between term insurance and life insurance policy?

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A term insurance policy comes with only the death benefit. Nominees can claim it if their policyholder passes away within the coverage period. On the other hand, life insurance policies offer both death and maturity benefits. Beneficiaries will get the death benefit like a term insurance plan. Furthermore, if policyholders survive the policy term, they will also get a lump sum maturity benefit.

What will be the consequence if I miss the premium payment of my life insurance policy?

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You may forget to pay the premium of your life insurance policy on or before the due date. In such circumstances, if you succeed in paying within the grace period offered by your insurer, your policy will not lapse. Otherwise, you will have to pay a certain penalty and the premium to reinstate your life insurance coverage.

Disclaimer

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