What is the difference between term and life insurance?⌄
Term Insurance: Pure protection — pays only on death. No maturity benefit. Very low premium for very high cover. Life Insurance (Endowment/Whole Life/Money Back): Protection + savings — pays on death AND at maturity. Higher premium but you get money back. Choose based on your need and eligibility.
Who should choose a life insurance savings plan over term?⌄
(1) People with health conditions that disqualify them from term plans, (2) Those above 65 where term may be expensive, (3) Those who want guaranteed savings + protection in one product, (4) People uncomfortable with 'no return if I survive' concept of pure term.
Is life insurance maturity amount taxable?⌄
Tax-free under Section 10(10D) if annual premium paid does not exceed 10% of sum assured (for policies issued after 1 April 2012). Death claim proceeds are always 100% tax-free regardless of amount. ULIP maturity above ₹2.5L annual premium is subject to LTCG.
What is a loan against life insurance policy?⌄
After paying premiums for 3 years, you can take a loan against your life insurance policy's surrender value — typically 80–90% of surrender value. Low interest rate. Policy continues to provide coverage. Ideal for short-term liquidity needs.
Can I have multiple life insurance policies?⌄
Yes. There is no restriction on the number of life insurance policies. Premium for each is eligible for 80C deduction (within overall ₹1.5L limit). For term insurance, total sum assured across all policies is underwritten based on human life value.
What happens if I miss life insurance premium?⌄
Most policies have a 30-day grace period. Payment in grace period restores full coverage. After grace period: policy lapses. Revival possible within 2–5 years by paying arrears + interest + medical check. After 3 years of paid premiums, policy gets a 'paid-up' status.
What is the claim settlement process for life insurance?⌄
Nominee submits: (1) Filled claim form, (2) Original policy document, (3) Death certificate, (4) Nominee's identity proof. Insurer processes within 30 days of receiving all documents. We assist nominees with the complete claim process — free of charge.