When the policy money becomes due for payment on the death of the policyholder, it can be paid only to that person who is legally entitled to give a valid and effective discharge to the Corporation. If the policy bears nomination, the claim is settled in favour of the nominee. Similarly, if the policy is assigned, the assignee receives the claim amount. It should be noted that an assignment of a policy automatically cancels the existing nomination. Hence, when such a policy is reassigned in favour of the policyholder, it is necessary to make fresh nomination.

When a policyholder wants to change his address in State Life�s records, notice of such change should be given to the zonal office servicing his policy. Policy records can be transferred from the zonal office that services the policy to any other zonal office nearest to the policyholder's place of residence. The correct address facilitates better services and quicker settlement of claims.

When the premium is not paid within the days of grace provided after the due date, the policy lapses. The grace period in case of yearly, half-yearly and quarterly modes of payment is one month and in case of the monthly mode of payment, it is 15 days.

A lapsed policy may be revived during the lifetime of the life insured, but within a period of 5 years from the due date of the first unpaid premium and before the date of maturity. Revival of a lapsed policy is considered either on non-medical or medical basis depending upon the age of the life insured at the time of revival and the sum to be revived.

No alteration is permissible in the policy document - the evidence of contract, unless both the parties to the contract agree. After the policy is issued, a policyholder in a number of cases finds the terms not suitable to him or her and desires to change them to suit his or her convenience. State Life also realizes that insurance being a long-term contract, certain changes under given circumstances might necessitate an alteration of the contract. Keeping in view the basic principles of insurance and administrative convenience, State Life permits some alterations. As a rule, State Life will not permit alterations within the 1st year from the commencement of the policy.

The loss or destruction of a policy document does not in any way absolve the Corporation of the liability of payment of policy monies when the claim arises. If the policy is lost or destroyed, claim or sum insured will be paid to the claimant or policyholder after he or she furnishes an indemnity bond jointly with two sureties. Similarly, a policy can be surrendered even if the original policy document is lost. However, for the purpose of loan or survival benefit one has to obtain a duplicate policy. The policy being a legal document, the issue of duplicate policy involves the normal procedures like issuing a newspaper advertisement.

A lapsed Life Insurance policy can be revived within 5 years from the date of the first unpaid premium.

It is not possible to raise money against your life insurance policy. However, there is a provision available by way of assignment or mortgaging the policy provided the policy has been in force for a minimum stipulated period.

In case the policy is lost, policyholder should get a duplicate policy issued. State Life issues it after completion of certain formalities and a nominal fee.

A lapsed policy can be revived within five years from the date of the first unpaid premium.

The calculation of life insurance premiums is primarily based on four factors � age of the person to be insured insured, type of policy, sum insured and term of the policy.

Life insurance is mainly considered as a saving instrument rather than an investment avenue as it promotes compulsory savings besides protecting the family of the policyholder in the event of unforeseen happening. It is the only saving instrument, which covers the life risk. A loan can also be availed against the State Life insurance policies.

Planning for the financial consequences of a premature death is an essential part of every financial plan. Generally, the consequences are simply too large to ignore and cannot be totally covered with your own resources.

Life insurance is nothing but a contract with an insurance company under which the insured (purchaser) pays a premium in exchange for coverage of specified losses. Life insurance protects your family against the risk of the premature death of you (or your spouse). Life insurance planning should consider your family's short-term needs (for example, medical expenses) and long-term needs (for example, replacing your income).

In the course of our life we are accosted by risk-that of failing health, financial losses, accidents and so on. Insurance is a means by which life's uncertainties are addressed in financial terms. It offers a monetary compensation against those losses. Insurance is considered more as a hedging mechanism rather than a true investment avenue. Life insurance, in particular is essentially acknowledged as a mechanism which eliminates risk substituting certainty for uncertainty primarily by transferring risk from the insured to the insurer. 

At present loans are granted up to 80% of the Surrender Value for policies, where the premium due is fully paid-up. The rate of profit or return charged is 10% per annum compounded semiannually.

Policyholders are eligible to take loan on their policies subject to certain rules and regulations.

The policyholder has to apply for loan in a prescribed form and submit the policy document with the form duly completed.

Currently State Life is charging 10% interest on policy loans. Interest is payable half-yearly.

A policyholder can repay the loan amount either in part or in full anytime during the term of the policy.

If loan is not repaid during the term of the policy or early claim, the amount of loan plus profit or return, if any, will be deducted from the claim money and the balance amount will be paid to the person making the claim.

The very fundamental principle of spreading of the risk is actually practiced by the insurance companies by reinsuring the risks that they have insured.

Underwriting of a risk involves consideration of material facts on the basis of which a decision will be taken whether to accept the risk and if so at what rate of premium.

If the policy has acquired a surrender value and a premium has remained unpaid beyond the grace period, the policyholder will entitled to benefits under one of the following two options given hereinafter, depending on the option exercised (if any) in his Proposal for this policy: