A participating (or with profits) policy would enable the policyholder to share in the profits of a life insurance company, while a non-participating (or without profits) policy does not have this right. Profits that are allotted to the participating policyholders are usually in the form of reversionary bonuses or dividends. These bonuses or dividends are not guaranteed and can increase or decrease depending on the investments returns of the life funds.

   The risk class or mortality of a policyholder is determined by an underwriting process through which a life insurance company would decide whether or not to accept a risk. The risk of death is determined by several factors such as age, sex, habits, personal and medical history, occupation, etc. The life insurance company's decision to insure your life is based on the information provided in the application form, the medical examination report (if required) etc. Be truthful whilst filling in your form so that the life insurance company can be fair in its assessment of the risks involved.

   The policy contract provides for a 'grace period', which gives the policyholder an additional period of time after the due date for the payment of the premium. During this period, you can still pay your premium and the life policy still continues to be in force. For monthly mode of payment, the grace period is usually 15 days, while for other frequency of payments (semi-annually or annually), it is usually 30 days. When your life insurance policy has lapsed, you may revive or reinstate it to full force within a period of time and under certain conditions such as declaration of your state of health at the time of reinstatement.

   Yes, under the free look period, you can cancel your life insurance policy within 15 days by returning the policy to the life insurance company after you have received the policy document.

   Since buying a life insurance policy is a long-term commitment, it is not advisable to terminate your policy early as you will not receive the total amount of premium that you have paid because the surrender value is usually less than what you have paid. Replacing an existing policy with another is not in your best interest because the new policy is likely to be at a higher premium as you are older. There will also be an initial cost of writing the life insurance policy for a second time. Additionally, the two-year period of contestability will begin again. Furthermore, the present life insurance company can often make the changes that you want at lower cost to you.

   A sales illustration is not a legal document. Legal obligations of a life insurance policy are spelled out in the policy itself. Therefore, a policyholder as the limits or exclusion clauses, before signing the contract.

   The amount of premiums paid depends on the insurance coverage you need. First, you must look at what current benefits your insurance policy provides whether you are opting for a rider. With some riders, you may stop paying premiums for your policy when you become disabled and still enjoy the benefits of life insurance protection. However, if your policy does not have this benefit and you are finding it difficult to continue meeting the premium payments, you should discuss with your financial adviser on other options which may be available for you to consider.

   You should fill out a claim form and contact the financial adviser from whom you bought your policy. You need to submit all relevant documents such as original receipts to your insurer to support your claim. If your insurer can settle your claim, you will be issued a cheque generally within 7 days from the time they receive all relevant documents. However, if your insurer is unable to deal with all or any part of your claim, they will explain to you in writing.

   Traditional Insurance products consist of Term Insurance, Endowment and Whole Life Policies. You can benefit from such instruments as they have a cash value which increases every year as you pay premiums. Some traditional life policies are participating, meaning they issue dividends. You also get a tax benefits and more over the premium on traditional life insurance is level throughout the life of the policy.