Life insurance: Amitabh Chaudhry

Today, Amitabh Chaudhry , managing director & chief executive officer at HDFC Life, answers your questions

My insurance policy lapsed. Now, the company is running a policy renewal drive. Should I renew my policy?

It is advisable to renew your policy if it has lapsed. However, the company might ask you to undergo a medical test, depending upon the policy you bought.

I am paying premiums for a traditional life insurance policy for five years. I have not received any bonus. Should I be worried?

Generally speaking, participating plans offered by insurance companies accrue bonuses throughout the policy term (or the mentioned period). These are declared at the end of the year and get attached to the receivable benefit. These are not guaranteed and the rates might change from time to time. The bonuses are not paid out at the end of every year in the form of cash payouts. I suggest you get in touch with the company. Normally, all bonuses are payable on maturity, along with the sum assured that you shall receive at the end of another five years, provided the policy is in force and all due premiums have been paid.

I was planning to buy a money -back policy and completed the medical test. But the premium was working out to a huge amount. So, I decided to cancel it. The agent is asking for some money, though it is within the free-look period. Why?

If you have already paid the first premium, then after free look, the premium is refunded by deducting expenses for medical test, stamp duty and proportionate life cover charges. You should get in touch with your agent and understand details of the deduction being applied.

The views expressed are expert's own. Send your queries to yourmoney@bsmail.in