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FAQs

Life Insurance - How does it work?
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Insurance is a contract between the insured and the insurance company (insurer). An insurance company promises to pay the sum assured to the dependents (nominee/beneficiary), in return of premiums that the proposer/insured pays periodically.
Premiums are the periodic payments that the proposer pays. The insurance company decides premiums based on the type of plan, age, gender, medical history, duration of the policy, lifestyle, etc.
In the case of passing away of the life insured, the insurance company provides money directly to the nominee. The sum assured provides financial aid:
-For household monthly expenses – replacing breadwinner’s monthly income
-As a fund for child’s education
-To pay off any loan or debts
-To build corpus and funds for retirement and child’s marriage