state life insurance

All about State Life Insurance


If your queries are about state life insurance, like state life insurance policy, state life insurance policy check online, state life insurance helpline, this article will solve your queries.

What is life insurance?

Life insurance is a contract between you and an insurance company. You pay regular premiums to the life insurance company. In return, the company pays a death benefit to your beneficiaries upon your death. Depending on the type of policy you purchase, life insurance can cover natural death, accidental death, and even illness or injury during your lifetime.

There are two basic types of life insurance policies: Term life insurance and whole life insurance. Term life insurance covers you for a specified period of time, while whole life insurance covers you for the rest of your life.

Term life insurance is usually cheaper than whole life insurance. Like whole life insurance, endowment insurance accumulates cash value over time and does not lapse once you have paid the premiums. If you outlive your policy, the term life insurance is worthless.

To whom is the death benefit paid?

The death benefit is usually paid to the authorized representative or legal successor. However, if the deceased insured did not name/assign the policy or make a will, it will be paid to the holder of the certificate of inheritance or court-ordered proof of ownership.

What is a nomination/assignment of an insurance policy?

If a claim is payable upon the death of the insured, the claim will be paid only to the person who has the legal right to give a valid and effective release to the Company. If an authorized representative is named in the policy, the claim will be paid for the benefit of the authorized representative. If the policy has been assigned, the assignee will receive the amount of the claim. It should be noted that when an insurance policy is assigned, the existing nomination is automatically cancelled. Therefore, if such a policy is reassigned in favor of the insured, a new policyholder must be created.

When does the policy expire?

The policy will expire if the premium is not paid within a grace period after the due date. The grace period is one month for annual, semi-annual and quarterly payments and 15 days for monthly payments.

How can I reinstate a lapsed policy?

A lapsed policy may be reinstated during the insured’s lifetime within five years after the first unpaid premium is due and before the expiration date. Reinstatement of a lapsed policy is considered non-medical or medical, depending on the age of the insured at the time of reinstatement and the amount to be reimbursed.


Can I change my policy?

You may not change the policy that is evidence of the contract without the consent of both parties to the contract. In many cases, after the policy is issued, the insured finds that the terms do not suit them and wants to change it to suit their circumstances. We also recognize that insurance is a long-term contract and that circumstances may require changes to the policy. In the interest of insurance principles and administrative convenience, we allow a number of changes. Generally, changes are not permitted within one year of the policy inception date.

What happens if I lose my insurance policy?

The loss or destruction of insurance policies does not relieve the Company of its obligation to pay in the event of a claim. In the event of loss or destruction of the policy, the claim or sum insured will not be paid until the claimant or policyholder has presented a deficiency bond in the joint names of two guarantors. In addition, the policy may be cancelled if the original policy document is lost. However, it is necessary to obtain a duplicate of the insurance policy in order to obtain loans and survivor benefits.

How can life insurance help you?

Planning for the financial consequences of premature death is an essential part of any financial plan. The consequences are usually too great to ignore and cannot be fully covered by your own funds.

Life insurance is nothing more than a contract with an insurance company in which the insured (the buyer) pays a premium and receives compensation for a specific loss in return. Life insurance protects your family against the risk of your (or your spouse’s) premature death. Life insurance planning should consider your family’s short-term needs (e.g., medical expenses) and long-term needs (e.g., to supplement your income).

Throughout our lives, we face risks such as health problems, financial losses, and accidents. Insurance is a means of financial protection against life’s uncertainties. Insurance provides financial compensation for such losses. Insurance is viewed as a hedging mechanism rather than a true investment vehicle. In particular, life insurance is essentially recognized as a mechanism for removing risk, replacing uncertainty with security by transferring risk from the insured to the insurer.

How is life insurance financed?

Policies with recurring premium payments may be eligible for loans of up to 80% of the surrender value. The interest rate on the loan is 10% per annum, compounded semi-annually.

What is the non-automatic surrender option?

If there is a surrender value but no premiums are paid after the lapse period, the policyholder may receive benefits from one of the following two options, depending on the option exercised at the time of application

  • Option A: Automatic payment
  • Option B: Automatic premium loan


This option is available only if the cash surrender value of the policy exceeds the total of unpaid premiums and any other amounts due to State Life. This option may be exercised at the time the policy is purchased or at any time thereafter during the term of the policy. The option may later be changed by written notice and amendment of the policy by State Life, provided no premiums remain outstanding after the grace period. If the insured has not exercised the option, the benefits of the auto-pay option will apply.

Auto-Pay Option

This policy becomes a paid-up policy. The amount of the paid-up policy is calculated to allow State Life to pay all outstanding claims on this policy. No further premiums will be due, but the policy amount will be reduced. Any bonuses associated with the policy will be considered in determining the amount of the insurance benefit. Once a policy is paid up, no further premiums can be paid. If the specially calculated sum assured is less than Rs. 100, the policy will not be converted into a paid-up policy and will be treated as lapsed, with all benefits forfeited. A policy so converted into a paid-up policy may be reinstated for the full amount of insurance in accordance with the provisions of Clause 4 above.

Automatic Premium Loan Option

As long as the net cash surrender value of the policy equals or exceeds the unpaid premiums after the grace period, State Life will maintain the policy in full force and effect and treat the premiums as paid by making an automatic premium loan against the net cash surrender value of the policy. If, at the end of the grace period, the net cash surrender value of the policy is less than the unpaid premium, the policy will continue in full force and effect for an additional interrupted period.


This interruption period is equal to the ratio between the net surrender value and the total period of unpaid premiums. At the end of this interruption period, the contract will automatically lapse and all benefits will be forfeited. Any gain or return (by whatever name called) will be charged to your automatic premium loan at the rate established by State Life from time to time. As long as an Automatic Premium Loan with benefit or return is in effect for this Contract, all payments received by State Life will first be used to reduce this liability.

State life insurance helpline

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State life insurance policy check online

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