Life Insurance policy and renewal - Frequently Asked Questions

Q1. What is the advantage of paying renewal for my life insurance policy?
A.     Renewing the policy allows the policy owner to renew the coverage simply by paying additional premiums before the termination date without having to provide evidence of insurability (i.e. no additional underwriting is necessary)

Q2.  Why would I want to continue my insurance?
A. The life insurance of the policy holder will continue converge later in life. By renewing a policy, even if you develop a serious health problem, otherwise you may be unable to find coverage later on. Renewable life insurance allows you to maintain coverage even if you develop a chronic health condition.

Q3. Would the cost of renewal premiums be high?
A.    As most products are term coverage, the premiums are significantly lower and renewable life insurance allows you to obtain the coverage you need at an affordable cost.

Q4. I can not pay this year’s premium in one go. Can I change my mode of payment?
A.   Yes. You can change your mode of payment to yearly, half yearly, quarterly or monthly during the beginning of the policy year, depending upon the terms and conditions of the product.

Q5. What will be the status of my policy if I do not pay my due on time?
A.   The policy lapses. This means that the life protection for the policy no longer exists.

Q6. What is the time period within which I will have to pay my policy due?
A.    The renewal due for any policy should be paid on or before the due date or before the grace period.

Q7.  What is grace period?
A.   We offer you a grace period of 30 days from the premium dfue date for yearly/half yearly/quarterly premium and 15 days for monthly premiums. The policy will remain in force during the grace period and will lapse thereafter if no premium is paid.

Q8. I have a policy taken before 31st August 2010; will there be any consequences if I do not pay my renewals?
A. Though your investments (only in ULIP policies) will continue, your life cover ceases. This means that there could be a possibility of denial of death claim (sum assured).

Q9. I have not paid my renewals for more than six months, can I pay my premium now?
A. Yes. As your policy is in “lapse” as on date, a Declaration of Good Health (DGH) will have to be given along with a cheque or a DD remitting the premium payment till date.

Q10. What is a Declaration of Good Health?
A. A DGH is a declaration given by the life assured with respect to his/her health. It is given in order to revive your policy. It would entail that the policy will be underwritten again based on medical terms.

Q11. What is renewal?
A. Renewal is a continuation of your policy and life cover. It is a premium paid in order to keep your policy alive.

Q12. What is revival of a policy?
A. Revival is giving life to a lapsed policy.

Q13. How do I revive my policy?
A. The policyholder can revive the lapsed policy by making a written application within a period of 5 years from the first unpaid premium and paying the unpaid charges, if any, with all unpaid premiums. Unpaid premiums will be recovered on revival and will be invested based on the NAV as on date of revival for all ULIP polices.

Q14. My Policy Document states that my servicing branch is Branch X, but I have shifted my residence elsewhere. Do I still have to pay my premiums only in Branch X?
A.  Premium payment can be made in any of the SBI Life branches any where in India.

Q15. I am an NRI; I want to revive my policy immediately. How do I revive my policy?
A. The policyholder may send a scanned image of the Declaration of Good Health along with an NRI Questionnaire (if not given prior – at the time of policy issuance) and send it to us. A DD or a cheque can be sent from your behalf to enable us to process your revival.

Q16. I am not interested in paying my renewal. What do I do?
A.     The policy was taken by you for a specific purpose; for marriage, your child’s future, retirement investment; by stopping your renewal payment, your are closing the future benefits that can be availed by you.

Q17. I am an NRI. How do I remit my renewal payment?
A. We have an Online Payment facility which can be availed for all policyholders. This is an easy payment facility.

Q18. I have opted for monthly mode for my policy, can I avail an ECS payment?
A. Yes. Electronic Clearance System (ECS) is an easy way of paying your renewals. ECS can be availed by filling up the “ECS mandate form” and submitting to your nearest SBI Life branch.

Q19. Is it necessary that only State Bank group ECS can be given?
A. No. ECS can be given from any banks as long as they have an ECS facility available. Renewal would thereafter be directly debited from your account.

Q20. I have an SBI account. Can you suggest any easy way of making my renewal payment?
A.  One of the latest ways of renewal payment option is SI EFT, where the processing is very fast and also easy.

Q21. I would like to remit my renewal payment, can my father pay the due for me?
A.     Yes. Premium can be paid by any person mentioned below. Others are considered as third party.

-        Policyholder’s own cheque.
-        Cheque given by father/mother
-        Cheque given by a grandfather as a gift to his grand child
-        Employer giving a cheque to his employee as a part of Employer-Employee scheme.

Q22. Can I make partial payments to revive my policy?
A.  Revival can be effected only if the complete due till date is paid.

A23. I want to revive my policy as it is lapsed. What is the date of allocation of the NAV?
A.  NAV for a lapsed policy will be allocated as on date of the revival.

Q24. My policy status is tech lapse. Do I have to give a Declaration of Good Health?
A. DGH should be given if a policy is lapsed i.e. premium payment is not made for more than 6 months. In your case, the policy is not lapsed completely, so a DGH is not required.

Q25. In that case (if my policy is in tech lapse), can I make partial payments of my premium?
A.  Partial payments can not be made for any policy. Renewal premium has to be made till date for keeping the policy in force.

Q26. Can I avail Income tax benefits on renewal payments?
A. Yes. IT Benefits as per the rules of income tax can be availed.

Q27. What is a Topup?
A.  Top up is a premium amount paid to increase the invested funds in a ULIP Policy.

Q28. Can I avail IT benefits on Topup?
A.  Yes. IT Benefits as per the rules of income tax can be availed.

Q29. I have recently received my renewal receipt with a revenue stamp. Is it valid?
A.  As on 23/11/2010, “Mudrank” has been introduced, wherein all ULIP receipts will be printed and will be dispatched to you from the head office under the revised name as “Renewal Premium Receipt cum Unit Allocation Statement”

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