Life Cover Your Family Can Count On.

A common starting point is 10 to 15 times your yearly income, plus loans and big goals such as your children's education, minus savings you already have. That's a rule of thumb, not a rule; we work out the figure from your actual numbers.

Term insurance pays your family a set amount if you die during the policy term, and gives the most cover for the money. Whole life lasts your lifetime and costs more. Many families start with enough term cover to replace their income, then add plans for other goals.

You have a grace period: 15 days if you pay monthly, 30 days otherwise, and you stay covered during it. After that the policy lapses, or becomes "paid-up" with reduced cover if it has built up a surrender value. A lapsed policy can usually be revived within a few years by paying the arrears with interest.

At any time during the policy, by giving the insurer a written request; we'll fill in the form with you. Name people individually ("wife and children" as a group isn't accepted), and update the nomination after a marriage, birth or death. Assigning the policy, for example to a lender, cancels the nomination.

Within the first 3 years, yes, so disclose your health, smoking and other policies fully. After 3 years from the policy (or revival) date, Section 45 of the Insurance Act stops the insurer from questioning the policy on any ground.

For policies sold since late 2024, a surrender value is payable after the first full year's premium, and a guaranteed minimum after two years. Surrendering early usually returns less than you paid, so let's look at the numbers (and at a policy loan) before you decide.

Under the old regime, premiums count towards the ₹1.5 lakh a year limit of Section 123 (earlier 80C), shared with PPF, ELSS and others. The death benefit is always tax-free. Maturity proceeds can be taxable on newer high-premium policies (above ₹5 lakh a year for traditional plans, ₹2.5 lakh for ULIPs).

Yes. Life and health policies have a 30-day free-look period from the day you receive the policy document (it used to be 15). If you cancel, you get the premium back less the cost of cover for the days used, any medical test costs and stamp duty.