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Term Life Insurance Interview Questions & Answers - Learning Mode
COOLINTERVIEW.COM INSURANCE INTERVIEW QUESTIONS TERM LIFE INSURANCE INTERVIEW QUESTIONS QUESTIONS & ANSWERS - LEARNING MODE

Term Life Insurance Interview Questions & Answers - Learning Mode

Term plans are the most basic form of life insurance. They provide life cover with no savings / profits component. They are the most affordable form of life insurance as premiums are cheaper compared to other life insurance plans. Online term insurance plans provide pure risk cover, which explains the lower premiums. A fixed sum of money - the sum assured ? is paid to the beneficiaries if the policyholder expires over the policy term. If the policyholder survives, there is no pay out.

Try Term Life Insurance Interview Questions & Answers - Exam Mode

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Term Life Insurance Interview Questions & Answers - Learning Mode
Try Term Life Insurance Interview Questions & Answers - Exam Mode
Question: Which is a good term insurance plan i can consider from LIC?

Answer: LIC Amulya Jeevan- II is one of the most popular term insurance plans from the bouquet of Life Insurance Corporation. LIC Anmol Jeevan II plan allows you the flexibility to pay premiums at yearly or half yearly basis as per your liking. LIC allows a grace period of one month for payment of missed or delayed premium. LIC Anmol Jeevan II does not offer any paid up value on maturity or surrender value on premature withdrawal of the policy. Source: CoolInterview.com
Question: Do insurance companies inquire about accidental death before paying the insurance amount?

Answer: If a claim arises within the first two years of buying the policy, the insurance company investigates extensively before settling the claim. Each insurance company has its own investigation procedure to enquire about accidental death claims. The company seeks information including copy of police FIR if any along with any medical report indicating the cause of death and/or a written statement outlining the date, location and circumstances of the accident. Source: CoolInterview.com
Question: Is death by suicide covered under a term plan?

Answer: A term plan may or may not offer cover for death due to suicide as per the plan policy. Death by suicide if it happens in the first year of the term is not covered by any term insurance plan. Suicide cases after the first year however are covered depending on the insurance service provider. Apart from death by suicide due to any sort of self-inflicted injuries or by voluntary participation in dangerous hobbies are also not covered under a term insurance plan. Source: CoolInterview.com
Question: What is the maximum time limit to revive a life insurance policy which has lapsed?

Answer: A life insurance policy can be revived if it has lapsed within 5 years from the date of the last premium paid. If you revive your policy within 6 months of it being lapsed you just need to pay your outstanding dues along with interest as per your insurance service provider. Remember if any claim arises once the policy has lapsed, the insurance company has no obligation to pay any protection amount or life cover. Source: CoolInterview.com
Question: What if a person was a smoker long back but not at the time of taking the policy?

Answer: Depends on the policy, but just for example, the Kotak Life Insurance proposal form mentions that the client has to declare whether he was a smoker or drinker earlier also even if he has left that habit long ago.
Also, it depends on the company whom they consider as a non-smoker at the time of issuing a policy. For example: Max New York Life Insurance, for its Platinum Protect (term insurance), considers people, who have left smoking more than three years ago, as non-smokers. So please check Source: CoolInterview.com
Question: What?s the best method to find how much insurance would be sufficient?

Answer: Follow these two simple rules. Firstly make sure the insurance cover is big enough to cater to all debts and financial needs. So opt for a cover between 10 to 12 times your annual incomes. Secondly the sum insured for your life insurance plan must be that amount which if invested can fetch a regular income for your family members in your absence. Source: CoolInterview.com
Question: Will the nominee get insurance claim if the policyholder has term insurance but no accidental death rider?

Answer: Yes the nominee will definitely get the claim as per the policy even if the policyholder did not opt for an accidental death rider for the term insurance plan. Many people believe that you need to opt for this rider to receive accidental death benefits. Term insurance policy offers death benefits for accidental deaths but if you have opted for this rider, you can get an additional sum assured. For example if someone has a term insurance plan of Rs. 5 Lakhs and an additional accidental rider add- Source: CoolInterview.com
Question: To what extent Pvt Insurance companies investigates death compared to LIC?

Answer: There is a difference between early claim and normal claim. If a claim arises within the first two years of buying the policy (This period varies from company to company), the company investigates extensively before settling the claim. You can very well understand if someone has a cover of Rs 50 lakh by paying Rs 7,000 annually (And he has taken this policy on monthly basis, i.e. paying around Rs 600 monthly), then the company is at a great risk. Hence, the company will doubly check everything t Source: CoolInterview.com
Question: What is the ideal amount to invest in an insurance policy? Should we focus on the life cover amount or number of policies?

Answer: The focus should be on cover and not on the number of policies. Number of policies will only increase the time required to manage so many policies. But you should surely take 2 policies from different insurance companies.

The ideal amount to invest depends upon what expenses you see in future. Work backwards from there. Many insurance companies provide online calculator to assess how much you need to put in insurance now. You can try one of them for calculation.

Moreover, I would s Source: CoolInterview.com
Question: Can NRI?s buy Term Insurance?

Answer: They can, but there is a catch. As a general rule, A person has to be resident in india to take up insurance policy from an Indian Company, reason being the documents required by the company like Address proof/age proof are to be for some place in India. Moreover, if the Sum assured required is more than 50 lakhs or so, customer is required to submit his financial papers such as last 3 years ITR or Form-16 which again should be done in India only. Last thing, medical tests would be done at some Source: CoolInterview.com
Question: I just completed my post graduation and joining my first job next month. My father expired recently and the only income for my house will be mine when I get the job. So I would like to ensure that my family will be compensated in case if something happens to me. Should I go for a term insurance policy?

Answer: A term plan covers the life of the insured and compensates the beneficiary named therein on the event of death of the insured. The insured pays an annual premium to the insurance company (premium can be paid at other frequencies also) for a specified tenure. The quantum of cover needed for the life is decided by the policy holder and the premium is accordingly decided by the insurance company. Remember that premium rates change based on the age of the insured. There is also a variation depending Source: CoolInterview.com
Question: How do I convert my existing paper insurance policy to electronic form?

Answer: To convert your existing paper insurance policy to its electronic form, you will have to open an eIA account with the approved insurance repository. Request forms are available with all insurance repositories to open a new eIA account for policy conversion to digitized format. You can also download the form from the official website of the insurance repository. Once you have the form, fill up and submit the same to the insurance company or the insurance repository along with supporting documents Source: CoolInterview.com
Question: If I buy a term insurance policy today, can its premium change in the future?

Answer: Unless and otherwise it?s mentioned in the policy document. Premium of a term insurance remains the same throughout the term of the policy provided everything remains the same with the policyholder. That is, the policyholder has not developed any illness or any smoking/drinking habit. On declaring any such thing, company might apply loading and thus the premium amount changes. Source: CoolInterview.com
Question: What kind of deaths are not covered in term insurance?

Answer: Some important facts, which most of the people are unaware of, are that most companies exclude ?Death due to Terrorist Attack?. Although such claims are settled on humanitarian grounds later on when the nominee approaches Insurance Regulatory and Development Authority (IRDA) but such exclusion is there in most companies. Other important fact, which public at large is unaware of, is that insurance companies do not cover death due to war or natural disaster like earthquake/tsunami. Because in thes Source: CoolInterview.com
Question: What is a Term Insurance Plan? How is it different than other life insurance schemes?

Answer: Term Insurance is a plain life insurance plan. It is the simplest and most fundamental death benefit plan without any money back or maturity benefits. The Term insurance product is designed for a specified term (between 5-30 years) and provides benefit to the beneficiary if the policy holder dies during the covered term. Financial experts believe that it is the best way of insuring as, the annual premium of term plan is very low and the sum assured (death coverage) is very high in comparison to Source: CoolInterview.com
Question: Are term plans valid for lifelong coverage or only till I am working?

Answer: Term plans do not offer a lifelong coverage. Insurance policies are generally designed to offer protective coverage for a person till the age he intends to work. Most term insurance plans term plans come with fixed tenures of 15, 20, 25 and 30 years while a handful of them offer you the flexibility of fixing the tenure. So for example if you are 32 years old you may not be eligible to buy a 30 year term plan and may have to settle for a 25 year one.
Source: CoolInterview.com
Question: How to take care of claim settlement in case of more than two policies?

Answer: The very first thing, in these cases, is to declare in the proposal form that you already have a policy from an XYZ company. (There is a column in every company?s proposal form, which a client has to fill if he has an insurance policy from the same company or any other company). Once such information is provided, then at the time of claim, the usual practice is to submit the Death Certificate to the insurance company with whom the policy is running for the longest period. Other companies are the Source: CoolInterview.com
Question: What is the difference between term insurance and life insurance?

Answer: Life insurance can be bifurcated basically into two parts i.e.
a> Life Insurance with a return over a period of time
b> Life Insurance without any return or sum assured
Term insurance plan is a pure life insurance product without any sum assured. It has the lowest premium among all other types. It can be purchased to provide a cover up to 35 years depending on your present age. Normally the premium amount is fixed during term period and in case of untimely death during the term pe Source: CoolInterview.com
Question: I need insurance for my pet dog that is part of my family. What are my options?

Answer: Just like every family member has a life insurance protection plan, there are pet insurance schemes available with many general insurance service providers. Protection is offered in case of death of the pet due to accident or any diseases contracted during the period of insurance. There are many insurance companies offering a dedicated policy for dogs. The New India Assurance Company is one such government recognized service provider offering a dedicated dog insurance plan. The insurance is usua Source: CoolInterview.com
Question: Do term insurance plans get cash value?

Answer: No term insurance plans are pure insurance plans which do not have any invested component and simply offer protection as long as the policy remains active. All life insurance policies with an investment component come acquires a cash value after certain number of years. Cash value is derived when your premium payments are more than the cost of insurance. The excess money goes into a cash value account and draws interest. If you decide to surrender your life insurance policy, the life insurance c Source: CoolInterview.com

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