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The amount of claim paid to the nominee/beneficiary under the life insurance policy after the life insured passes within the policy term is called the death benefit. It is the lump sum amount that a nominee receives when the life insured dies within the policy period.
Death benefit is a final pay-out to your beneficiaries in case of your unfortunate passing away during the policy's term, while the policy is inforce. A death benefit is the primary and possibly the most vital reason why you should purchase a life insurance policy for your family.
There are various types of death benefits:

• Lump Sum Payout: Here, the death benefit is paid as a lump sum amount in one go to your nominees if you pass away.
• Regular Payout: This death benefit comes in regular monthly instalments for a pre-decided period of time.
• Part Lump Sum and Part Regular Payout: This option is a mix of a lump sum amount and regular payouts for a specified time period.

Life insurance premium depends on the life risks associated with the individual purchasing the policy.
Underwriting is the process of ascertaining the risk the insurer should undertake in insuring a customer.
Professional underwriters review the criteria on your application to see if it's possible to offer you a policy and, if so, how much coverage you're eligible for.
It helps the insurer understand the likelihood of the insured customer's passing away, as that would mean the death benefit would have to be paid to the beneficiaries of the insured.
With the use of the underwriting manual, an underwriter will look into everything starting from your health to hobbies, from occupation to addictions, and would determine if an insurance policy can be offered to you and how much insurance should be granted. 

An underwriter analyses and determines the risks involved in offering insurance policies to individuals and business establishments. They also assess and decide the premium amount of the said insurance policies.
Underwriters use software, data analytics, and other technical means to evaluate the risks and advise the insurance companies of possible insurance claims in the future.

Insurable Interest is one of the fundamental principles of insurance. It is defined as the concern of an individual towards obtaining an insurance policy for an item or an individual against any type of unforeseen events such as losses or death.
The subject matter of the contract must provide some financial gain by existing for the insured (or policyholder) and would lead to a financial loss if damaged, destroyed, stolen, or lost.
To have insurable interest most typically means you are financially dependent or would have financial hardship if the insured person were to pass away.

A rider is an optional add-on benefit that can be opted for at an additional cost with your basic insurance policy. A rider provides additional coverage and they come in various forms such as accidental death benefit cover, critical illness cover, total and permanent disabilities cover, long-term care cover, etc.
Riders can be purchased at the same time you buy an insurance policy and it's much more cost-effective than buying separate policies for different needs.

Your basic insurance policy ensures financial support to your loved ones in your absence. However, it's always a possibility that you may need additional coverage depending on your preferences and life situations. Riders offer you such additional coverage and may be availed of when you buy your primary insurance policy at an extra cost.

Policy term simply means the lifetime of a term insurance policy. Policy term is the period of time a term insurance policy remains active, and in case of unfortunate eventuality during this term, your beneficiaries will receive the death benefit. Policy term is decided at the time of purchasing an insurance policy and is different than a premium paying term which refers to the period you are required to pay the premiums.

There are various term insurance policies to suit your different goals. Basic term plan, term plan with critical illness cover, term plan with return of premium, term plan with accidental death cover, are the key plans
Buying a term insurance plan is important if you have dependents in your family. By choosing the right term insurance plan you can ensure that your loved ones have enough financial coverage in the case of any eventualities.
The important advantages of the right term insurance plans are:
● High insurance cover yet affordable premiums
● Additional financial security
● Tax benefits
You should choose a plan after evaluating your financial goals and financial priorities.

Term insurance plans and endowment plans both offer life insurance coverage. But a term plan only provides financial cover to your family in case of your unfortunate passing away.
Term plans have a lower premium and a higher sum assured compared to endowment plans..
An endowment plan has multiple benefits. It builds your wealth besides protecting your loved ones after you. In the case of term insurance, your money does not grow over time, however, an endowment plan helps you save money for a specified period of time and get a lump sum amount in addition to providing life cover.

ULIP (Unit Linked Insurance Plan) is an insurance plan that offers twin benefits. It is an investment avenue to fulfil your wealth creation goals and offers life cover for your family in case of your unfortunate passing away.
A part of the premiums you pay is invested in the funds such as equity, debt, or a combination of both as per your preference and the other part goes toward life coverage. ULIPs are more transparent plans where the charges & investment portions are pre-defined and the returns are directly proportional to the risk of the investment avenue preferred. The charges provides protection to your loved ones and the investment avenue provides wealth creation.

An endowment plan comes with a maturity benefit or death benefit of the sum assured, ULIPs come with a triple advantage of insurance, wealth creation and tax-saving investment.
In ULIPs, the premium paid by the policy holder is partly invested in funds and partly on life cover. The policy holders can choose the funds to invest depending upon their risk appetite and investment horizon.
While endowment plans offer guaranteed benefits (maturity and death), returns on ULIPs are not guaranteed and can be higher since they are market linked and subject to performance of the funds. Also, ULIPs give the flexibility of switching funds and tweaking your investment strategy easily.
An endowment plan involves lower risk than a ULIP because the performance of funds in ULIPs depends on the market conditions. Also, partial withdrawal is allowed in ULIPs, after 5 years, which is not allowed in Endowment plans.
 

ULIPs serve dual benefits and provide insurance coverage and investment means in a single product. ULIPs are linked to the market and depending on market conditions, in certain cases, they may deliver higher returns. ULIPs involve relatively higher risk though.
Term plans, endowment plans, and whole life insurance policies come under traditional plans. These involve low risk and provide fixed returns in case of loss of life or at the maturity of the term

If the premium is not paid within the days of grace then the policy lapses. Typically, the days of grace for policies with monthly mode of payment is 15 days and for all other modes it is one month not less than 30 days.
 

Nomination is the process of designating a person to receive the policy moneys payable under life insurance policy upon happening of the risk event specified in the policy. Life insured at the time of taking a policy or at any time later during the term of the policy, may nominate a person who he thinks will suffer the financial loss upon his/her (LA) sudden demise. Nominee is authorized only to give a valid discharge to the policy proceeds when the claim is payable.
 

Assignment in simple terms is transfer of ownership of the policy. With assignment the interest of the insured (Owner) is transferred to the person usually for a monetary consideration he receives or as a gift. There are two types of Assignment -
conditional and absolute assignment. In the conditional assignment ownership is transferred back upon fulfilling a condition which is mutually agreed upon. In absolute assignment complete ownership is transferred. In this kind of assignment creditors of the policyholder cannot have any claim against the policy moneys and proceedings of the policy forms part of the assignee’s estate.

The policy, under which at least 3 full years’ premiums have been paid, is treated as paid-up policy. After policy acquiring paid-up value, if the further premiums are not paid, then the policy is not treated as void but will continue to cover the risk for the reduced sum which is Paid-up value.

The participating insurance product is a type of life insurance product that allows the policyholder to share the profits emerging from the participating fund. The non-participating insurance product is a type of insurance product where the profits emerging from the non-participating fund belongs to the company. The participating policyholder is a policyholder who purchases a policy which pertains to the participating insurance product.

 The asset share represents the share of a participating policy in the participating fund by considering all premiums paid, investment returns earned and various deductions towards expenses and commission, cost of providing death and other benefits, cost of capital and guarantees, contribution from miscellaneous surplus, taxes and shareholder transfers. The calculation follows guidance note from the Institute of Actuaries of India (IAI), a statutory body, which advises companies on the declaration of bonus.

 The cost of providing death benefits is based on actual deaths experienced by the company under the participating products. The expenses are same as those considered for generating BI (Benefit Illustration). The cost of capital and guarantees are considered to be nil as the participating fund has sufficient surplus to meet this cost. The investment of the participating fund including different types of assets is governed by IRDAI Regulations as amended from time to time and managed by the Investment Committee. The investment yield earned under this fund is available in public disclosure published on company’s website. The shareholder transfers represent the company’s share of profits which is 10% of the profits distributed under participating policy in accordance with Insurance Act and Insurance Regulatory and Development Authority of India (IRDAI) Regulations and the taxes are as per Income Tax Act.

 The bonus under participating policy represents the share of profit distributed to participating policyholders. The declaration of bonus, based on company’s policy on bonus distribution, is recommended by With-Profit Committee (WPC) and approved by the company’s Board of Directors. The With-Profit Committee of the company is governed by IRDAI Regulations. The allocation of operating expenses under participating and non-participating policies are consistently followed in line with Board approved expense policy which is in compliance with IRDAI Regulations. The company declares stable bonus rates which do not fluctuate unless there is excess instability in actual experience. This is known as smoothening of bonus. A part of good experience is set aside to support bad experience in other years by smoothening of bonus. This strategy ensures equitable treatment among different generation of participating policyholders by avoiding varying bonus rates across years. The amount available for smoothening of bonus is available in public disclosure published on company’s website. 

The Internal Rate of Return (IRR) for a participating policyholder is the estimated annual interest rate earned by the participating policyholder on the premiums paid under the policy. The average overall IRR of in-force participating policies maturing during the year is around 4.5%.

The before and after rates on different types of life insurance plans are as follows –

The new GST 2.0 reform has become effective from 22nd September 2025. 

Yes, renewal premiums falling due on or after 22nd September 2025 are exempt from GST. .

The GST 2.0 reforms only exempt life and health insurance premiums from GST. They do not alter any other terms, conditions, or policy benefits. So, your policy would have the same features and benefits even after the reform kicks in.

If the policy is issued before 22nd September, the old GST rules would apply. If you have paid GST on the premium, the GST would not be refunded. 

No, GST would not be applicable to premiums paid online or offline. However, if there are any convenience charges levied by platforms facilitating online premium payments, GST of 18% on such convenience charges would be applicable. 

For instance, say you pay a premium of ₹10,000 online for which convenience charges of ₹100 is applicable. While your premium would be ₹10,000 and exempted from GST, ₹18 GST would apply on the convenience charge, and you would have to pay a total amount of ₹10,118.

 

No, there would be no implication on the tax benefits offered by life insurance plans. If you choose the old tax regime, you can continue enjoying the 80C benefit on the premiums paid even if GST is nil.

Rider premiums paid on or after 22nd September 2025  are  exempt from GST. No GST would apply to them. 

GST exemption is only granted on individual life and health insurance plans. Group insurance plans would continue to attract 18% GST on the premium paid.

No, the GST 2.0 reforms have also extended the GST exemption benefit to individual health insurance plans. 

If you are paying premiums quarterly, half-yearly, or monthly, premium due dates falling on or after 22nd September 2025 would enjoy GST exemption. 

If you pay the revival premium on or after 22^nd September 2025, it will not include GST. However, a revival done before this date would incur GST at the previously specified rates. 

 

After the GST 2.0 reforms have kicked in, life insurance premiums have become cheaper since you are saving on the additional GST payment. So, now, your premiums would become more pocket-friendly if you buy or renew the policy after GST 2.0 reforms.

Premium paid under life insurance policy in any financial year is allowed as deduction from gross income for the corresponding assessment year, under section 80C, subject to a maximum of Rs. 100,000. Section 10 (10D) states that proceedings received under a life insurance policy or Key-man insurance policy, are not taxable.
 

Premium paid under a pension policy in a financial year is allowed as deduction from income for the corresponding assessment year, under section 80CCC, subject to a maximum of Rs.100,000. Pension received under pension policy is treated as income and is taxed as such.

Section 80CCE of Income Tax Act 1961, states that the total premium that is allowed as deduction under Section 80C and 80CCC taken together, in any assessment year cannot exceed Rs.100,000.
 

Any sum paid to effect or to in force a health insurance policy on the life of assessee, or his/her spouse or dependant parents/children subject to a maximum of Rs.15, 000 is allowed as deduction from the income chargeable to tax.

CKYC helps financial institutions verify customer identity efficiently while reducing the need to submit KYC documents repeatedly for different financial products, as customers are required to complete CKYC based on the financial product and applicable regulatory guidelines.  

Once your KYC details are registered, a unique 14 digit KYC identifier/ KYC identication number is generated, which can be quoted while undertaking any financial transaction insted of submitting KYC documents. This enables:

• Faster customer onboarding process
• Reduced paperwork
• One-time KYC across financial institutions unless there is a change in KYC details
• Secure centralized record maintenance
• Easier access to financial service

Financial institutions regulated by RBI, SEBI, IRDAI, and PFRDA are authorized to register customers under CKYC. When you purchase financial products such as a bank account, Demat account, insurance policy, or mutual funds, these institutions will register your KYC details with  CKYC.

When you opt to buy any financial products from any of the financial institution regulated by IRDAI, PFRDA, RBI or SEBI, they will ergister your KYC details to the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI).

You are required to submit the following documents:

• PAN card
• Valid identity and address proof (such as passport, driving licence, Proof of possession of Aadhaar number, Voter's Identity Card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government, letter issued by the National
  Population Register containing details of name, address or any other document as notified by the Central Government in consultation with the Regulator)
• One recent passport size photograph

Once it is successfylly registered, you will be provided with a 14-digit KYC Identification number (KIN). A confirmation will also be sent be sent by CERSAI via SMS/email to your registered contact details.

You can check your CKYC number and status online by visiting authorized web portals:

www.ckycindia.in

You are required to complete the following steps:

• Visit the website
• Enter your registered mobile number.
• Complete the CAPTCHA verification, You will get an OTP on your number, which should be entered in the OTP field
• The details will be sent to your registered mobile number or email ID.

Alternatively, you can contact the financial institution where you originally submitted your KYC documents to obtain your CKYC number.

Yes, depending on the institution’s process and regulatory permissions, CKYC may be completed digitally using Aadhaar-based authentication or other approved methods.

 In the case of SUD Life Insurance, the field/disclaimers/information required as per the CKYC form gets captured in our proposal form itself, hence there is no separate CKYC form for SUD Life Insurance Policies