Frequently Asked Questions

Life insurance coverage should be enough to replace your income and meet your family’s financial needs if you are no longer around. As a general guideline, most people should have coverage equal to 10–40 times their annual income, depending on their age, responsibilities, and future goals. Your life insurance coverage should also account for outstanding loans, daily living expenses, children’s education, and long-term goals such as retirement for your spouse.

Yes, you can cancel one plan and buy another, but premiums increase with age, and new medical checks may reveal conditions that raise the price. Review early rather than late.

Yes, ₹5 crore term insurance policies are mostly tax-free for beneficiaries. Usually, the amount your family receives from a term insurance plan is not taxed. It falls under the tax-free category as per Indian income tax laws. However, always check the current rules before making a decision.

To choose the best ₹5 crore term insurance plan, start by listing your needs - how much you earn, your family's expenses, and your loans. Then compare a few policies from trusted insurers. Look beyond just the price. Check for service quality, claim process, and customer support.

Not necessarily. Whole life suits those who need a permanent cover with a savings element. Term insurance is better for temporary and affordable protection.

Yes, some insurers allow conversion from term insurance to whole life insurance without medical checks. But it must be done within a specified time or age limit.

If you survive the term policy, the coverage simply terminates without any payout. Some term plans also offer a return of premium option, where all premiums are returned if the policyholder survives the term.

Whole life insurance is a conservative option. While returns are lower than mutual funds, it offers guaranteed, cash value growth and tax-free death benefits. Guaranteed value received may be exempt if the conditions specified under Section 10(10D) are satisfied.

If you stop paying premiums on your whole life policy, the policy will simply lapse. But if you’ve paid premiums for several years, it might convert to a paid-up policy with reduced benefits. Alternatively, you can surrender the policy and receive the accumulated cash value (subject to charges).

No, term insurance payouts are not taxable. The death benefit is 100% tax-free under Section 10(10D).

To claim the death benefit, the nominee needs to:
1. Submit the death certificate
2. Fill out the claim form
3. Provide ID proofs and the policy documents

As per PPHI regulation, the claim settlement TAT is 15 days for no investigation cases; wherever there is an investigation required, it takes 45 days.

Term insurance is better than other life insurance if your goal is pure protection. Term insurance offers high coverage at a low cost. If you're also looking to save or invest, you might want to explore ULIPs or endowment plans.

Group term life insurance is not taxable. The death benefit received by the nominee of a group term life insurance is completely tax-free under Section 10(10D) of the Income Tax Act, 1961. For employers, premiums paid towards this policy can be shown as a business expense.

Group term insurance usually requires the employer to cover the full cost. However, some companies offer additional voluntary coverage, where employees can choose to pay extra for higher protection.

Your coverage will not continue if you leave the company. Group term life insurance is active only during your period of employment. Once you leave the organisation, the cover stops unless the plan includes a conversion option (which must be initiated before exit).

Group term insurance is usually not enough for family protection. The coverage amount is basic and may not be sufficient for long-term financial needs such as children's education or home loans. It's wise to supplement it with a personal term insurance plan.

Yes, you are allowed to update your nominee whenever you want during the coverage period. You must fill out the appropriate nomination change form that is given by your insurance company. The method of insurance claims processing may vary since they can be handled in person or on the internet. You should keep your nominee details up to date if there are any new changes in your personal circumstances.

Yes, medical tests are often required to buy term life insurance. It becomes a mandate for higher sum assured amounts, or if you have certain health conditions. These tests allow insurers to assess your health risks and calculate the appropriate premium. At the same time, some insurers also offer term policies without medical examination. Undergoing medical tests leads to more transparent pricing and fewer complications during claims. That's why it's a feature seen in most of the best term life insurance products.

Riders are optional benefits that you can add during the application of a term life insurance policy, which can be availed by paying an additional premium. It enhances the term life insurance coverage. How you address your needs and what you aim to accomplish financially will decide which riders you need.
Deciding on the right rider allows you to customize your policy. As a result, the policy can be improved and may turn into the best term life insurance plan for what you require.

Term insurance coverage generally includes death due to pandemics, unless the policy specifically mentions an exclusion. In most standard term insurance plans, death caused by illnesses, including widespread outbreaks, is treated like any other natural cause.

Term insurance coverage generally includes death due to natural disasters such as earthquakes, floods, cyclones, or fires, unless specifically excluded in the policy. These events are usually treated as accidental or natural causes of death under standard term insurance plans.
However, term insurance policy terms may vary across insurers, so it is important to review the exclusions section carefully. Understanding the coverage ensures there are no surprises at the time of a claim.

Term insurance coverage may include death due to alcohol or drug use, but it depends on the policy terms and circumstances. If death occurs due to excessive or illegal substance use and is mentioned as an exclusion, the insurer may reject the claim.
However, term insurance policies usually cover death from natural causes unless specifically excluded. To avoid claim issues, it is important to disclose habits like alcohol or drug use honestly while buying the policy and carefully review the exclusion clauses.

If both the policyholder and the nominee pass away together, the term insurance claim settlement is paid to the legal heirs. In such cases, the insurer releases the claim amount based on succession laws, which may require legal documents like a succession certificate or a legal heir certificate.

Term insurance nomination allows a minor to be named as a nominee. However, since a minor cannot legally receive the claim amount, the policyholder must appoint an appointee who will manage the funds until the minor reaches adulthood.

Multiple nominees in term insurance can be appointed in a single policy. You can specify the percentage share for each nominee to ensure the claim amount is distributed clearly and smoothly among them.

Life insurance is a financial product that provides money to your family if you are no longer around to support them. It is important to consider buying life insurance so that you are better prepared to face life's uncertainties. It helps in building a shield of protection for your family. Buying life insurance not only secures your financial future but also relieves you of stress, as well as protects your loved ones’ life goals.

Tax benefits are available when you buy a life insurance policy. All premiums that you pay through your policy term qualify for a tax benefit under Section 80C of the Income Tax Act, 1961. You can claim a deduction of up to Rs 1.5 lakh a financial year for the premium paid for yourself, your spouse, and your children. Tax benefits are also applicable under section 10(10D) on maturity benefit in the majority of the plans.

Life insurance coverage mainly protects your family financially in case of your death. Most policies cover death due to natural causes or accidents, as mentioned in the policy terms. It is important to read the policy document to understand what is included and excluded.

Life insurance works as a contract between you and the insurer. You pay premiums regularly. The company, in return, pays a large sum of money to your nominated persons in the unfortunate event of your passing. Within these parameters, there are several types of life insurance available. Based on your specific needs and life goals, you can select the policy that best suits you.

Employer-provided life insurance is usually not enough for long-term needs. The coverage may be limited and often ends when you change jobs. Having your own policy ensures uninterrupted and adequate protection for your family.