Your life cover, explained.
What the cover is
₹1,50,00,000 of life cover until age 65 (2061), for ₹22,700 a year for 35 years
The death benefit while the policy is in force is ₹1,50,00,000, paid at once. Premiums over the whole term: ₹7,94,500 (riders ₹5,100 a year of it). If alive at the end, nothing is paid: that's what keeps a term plan's premium low.
Your rights
- Free look30 days from receiving the policy
- Grace period15 days monthly, 30 days otherwise; covered meanwhile
- RevivalWithin 5 years of the first unpaid premium
- The 3-year ruleAfter 3 years, can't be called in question
- First-year exclusionSuicide within 12 months: at least 80% of premiums
- NomineeCan be changed any time while in force
Claims: the time limits
- Death claim15 days from being reported
- If investigated45 days
- If lateInterest at bank rate + 2%
A rejection needs the insurer's claims review committee and its reasons in writing. Keep a copy of the proposal form with the policy.
Tax
Up to ₹22,700 of the premium counts for the deduction (old regime)
Under section 123 of the Income-tax Act, 2025 (Schedule XV; formerly 80C), premiums for yourself, your spouse and children count towards ₹1,50,000 a year, together with PF, PPF, ELSS, home-loan principal and the rest, up to 10% of the sum assured a year. Only in the old tax regime. The death benefit is never taxed. GST on this premium: 0%.
Married Women's Property Act
A policy taken under section 6 of the MWP Act, 1874, is held in trust for the spouse and children named: creditors and other claims on the estate can't reach it, and it can't be changed later. It has to be chosen when buying.