Frequently Asked Questions




Life Insurance is a contract between the insurance company (insurer) and the policyholder (insured). In return for a consideration (the premium), the insurance company promises to pay a specified amount to the insured on the happening of a specific event such as death, disability, critical illness. Life insurance ensures financial protection on accident or death. It enables maintenance of the same lifestyle even after the unfortunate demise of a loved one. The beneficiaries can utilize the monetary benefits to replace the income one would have earned or help pay off debts or other expenses. Life insurance boosts the confidence of the insured, and offers satisfaction of being covered for illness, life or financial loss.

Unit-linked insurance plans offer the benefits of both life insurance and returns on investment. They give the insured the option to participate in the growth of the capital markets. On the death of the insured the sum insured or the market value of the investment (fund value), whichever is higher, is paid. On maturity of the plan the fund value is payable. Returns are subject to movements in the capital markets or debt market where investments such as equities (shares) or bonds (debt) are transacted. Unit-linked policies carry a higher risk than with-profit policies and contain fewer guarantees. However, they are much more flexible. Unit-linked policies are suited for people prepared to undertake some investment risk to obtain the benefits of flexibility.

Term insurance is a life insurance which provides coverage for the policy term decided between the policy holder and insurer at the onset of the policy. After this policy term expires coverage is no longer valid. If the insured dies during this term, the death benefit is paid to the nominee.

Sum Assured is referred to as the amount of insurance in a policy. The Sum Assured is actually the reason for which we buy life insurance. This amount affects the insured while living as well as afterlife. It is the amount that would be paid to the nominee in case of the death of the insured person (the afterlife effect) and plays a crucial role in determining the premium one has to pay to get the policy (The effect on an alive person). Sum Assured is the minimum death benefit in an endowment policy.

Grace Period is the time provided to the customer over and above the exact due date to make the payment for the renewal premium without lapsing the insurance policy or reducing any of the policy benefits. So it is an extra time window given to the customer to make the premium payment just in case he forgets to make the payment in time or needs some more time to arrange for the funds. The grace period for annual, half yearly and quarterly mode is 30 days, and 15 days for monthly mode.

The nomination can be done at the start of the policy by providing details of the nominee in the proposal form. However, if the nomination is not given at the beginning, it can be done at a later date. This nomination has to be effected by giving notice in a prescribed form to LIC and getting it endorsed on the Policy Bond. The policyholder can change the nomination at any time during the term of the policy and for any number of times. For this, the policyholder has to give a notice in a prescribed form to LIC. Further, nomination can be removed any time by the policyholder without giving prior notice to the nominee.

Yes. You can change your nomination at any time till the maturity date.

If premiums are paid for at least three consecutive years, the Policy acquires a Surrender Value. The Policy, which has acquired a Surrender Value, can be surrendered for payment in cash. Once the Policy is surrendered the contract is terminated.

If your policy has lapsed on account of non-payment of premium within the specified due date, you can reinstate it by: Applying for reinstatement within 5 years from the date of the first unpaid premium and before the maturity date. Paying all the required premiums and interest. Giving satisfactory evidence of health at your own expense.

Premium means the amount of money you have to pay to continue your insurance coverage.

Term means the number of years you choose to insure yourself.

Premium paying term means the number of years you pay premium on your policy.

Sum Assured means the amount of insurance cover you have or the minimum amount your family receives in the event of your demise.

Guaranteed Addition is a declaration made by the insurance company; it states that irrespective of the financial results of the company, the company will pay the guaranteed amount of money, to the insured or his nominee.

Survival Benefit is the amount of money received at pre-fixed, regular intervals by the insured person, upon survival of the term of the policy.

Maturity Benefit is the amount of money received by the insured, upon survival of the term of the policy.

Death Benefit is the amount of money the nominee receives from the insurance company upon the insured’s death. In addition to the sum assured, this would include the bonus, if any. If additional riders such as Accident Death Benefit or Additional Sum Assured have been selected, the amount of money receivable by the nominee could be higher.

After the policy is issued, the policyholder in a number of cases finds the terms not suitable to him and desires to change them. LIC allows certain types of alterations during the lifetime of the policy. However, no alteration is permitted within one year of the commencement of the policy with some exceptions. The following alterations are allowed. Alteration in class or term. Reduction in the Sum Assured Alteration in the mode of payment of premiums Removal of an extra premium Alteration from without profit plan to with profit plan Alternation in name Correction in policies Settlement option of payment of sum assured by installments Grant of accident benefit Grant of premium waiver benefit under CDA policies Alteration in currency and place of payment of policy monies A fee for the change or alteration in the policy is charged by the Corporation called quotation fee and no additional fee is charged for giving effect to the alteration.


About us


We specialize in Wealth Management Services and Insurance Consultancy services for all types of Insurances, such as Pension Plan, Health Insurance, Term Plan, Children education/ Marriage/Securing future, Financial Planning etc.

Our Vision


To secure the financial future of as many families as possible by providing the best advisory services & customized solutions to make their dreams comes true. To be ranked among the top most life insurance advisors in the world.

Contact Us


  +91 9198-567-133 / 9415-935-243

  akhileshkumarpallic@gmail.com

  Renukoot(Sonebhadra), Varanasi, UP

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