Life Insurance| LIC’s Jeevan Surabhi | Features | Benefits | Illustration | Advantages

Regarding borrowing money from policy:

If you wish to borrow money from you life insurance policy, the sum assured does not reduce. In fact in most cases it works out cheaper than a personal loan. The availability is dependent on the type of policy as well as its terms and conditions (which are mentioned in the policy document). Like for instance a ulip allows partial withdrawals, endowment plans allow loans against policy etc.

Regarding Medical tests:

A life insurer could ask for a medical test depending on

the age of the policyholder
the sum to be assured
the type of policy selected
the occupation of the policyholder, etc.

If any of these factors involve higher risks, insurer asks for medical tests to determine the level of risk before issuing the policy. The risk is collated under each of the above heads to arrive at the total risk, which is then converted into a “premium extra”.

Regarding nominee receiving the sum assured:

There are different types of plans available in the market. The income protection plans pay the benefit to nominee in installments. Few child insurance plans also pay the benefits in installments over a period of time. In event of the death of the policyholder, the child (nominee) gets the sum assured in installments on select ages or period.

Regarding nominee who is no longer in touch with the policyholder:

Usually the nominee is always from the immediate family of the policyholder. For example, spouse, child, parents, brother or sister. So there is usually no chance of the nominee not being in touch with the policyholder. And if in case a nominee fails to contact the insurance company when a policyholder dies, the insurance company makes every attempt to contact the nominee to pay the benefit amount. Although it is advisable to keep the insurance company updated about the contact details of the nominee(s), if the nominee’s address is different from that of the policyholder.

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Tags: LIC, Life Insurance Policy