Answer Book question
Probably less protection than you think and more confusion than you need. The way to find out is a one-page inventory: for each policy, the type, the sum assured on death, the premium, the maturity date, and the nominee. Most families who do this discover their total life cover is under ₹20 lakh.
Probably less protection than you think and more confusion than you need. The way to find out is a one-page inventory: for each policy, the type, the sum assured on death, the premium, the maturity date, and the nominee. Most families who do this discover their total life cover is under ₹20 lakh.
A family in Pathanamthitta sends Kerala Rising photographs of four policy documents. Two are endowments from 2006 and 2011. One is a ULIP from 2014 that has quietly lost a third of its value in charges. One is a "money-back" that pays small amounts every five years and that they thought was a pension. Total death benefit across all four: ₹13.5 lakh. Total annual premium: ₹71,000.
Policies fall into a few families. Term: pure cover, no maturity value. Endowment: cover plus a guaranteed-ish maturity. Money-back: endowment that pays instalments along the way. ULIP: cover plus market-linked investment with charges. Whole life: cover for life, usually with a savings element. Pension/annuity: not life cover at all, but an income product. Knowing which is which is most of the work.
Policy type and plan name. the schedule page says it Sum assured on death (distinct from maturity value) Premium and frequency, and whether premiums are still due Maturity date and expected maturity value Nominee name. and whether that person is still alive and still appropriate Whether any policy is assigned to a bank
A ULIP statement showing "fund value" is not cover. If the fund value is ₹4 lakh and the sum assured is ₹5 lakh, the death benefit may be only the higher of the two, not both. Read the schedule for the death-benefit definition.
Policies bought in a parent's name by a child abroad, policies in a maiden name, and policies where the agent has retired or died are common. IRDAI's Bima Bharosa portal and the insurer's customer care can help you retrieve policy status with the policy number and date of birth.
The Pathanamthitta family: after the inventory, they bought a ₹75 lakh term policy for the earning member for about ₹16,000 a year, made the 2006 endowment paid-up (two years from maturity, kept running), continued the 2011 endowment, and surrendered the ULIP after confirming its surrender charges had ended. Net annual premium fell to about ₹52,000 while death cover rose from ₹13.5 lakh to over ₹85 lakh.
If you are the nominee on your parents' old policies rather than the owner, do not change anything without them. And do not let anyone "consolidate" your policies into one new product before you have done this inventory; that is how four bad policies become one worse one.
Photograph the schedule page of each policy Fill one row per policy on a single page Update nominees where they are outdated
Should I cancel my old LIC policy? What does "sum assured" actually mean? My father died. How do we find out if he had insurance?
Kerala Rising Money · Family support
IRDAI consumer guidance · Insurer policy wordings (check your own schedule) · Income Tax Act provisions as applicable Rates, limits and whether you may qualify change. Confirm with the official source. Ask Kerala Rising: Send us a photo of your policy schedule pages. We will tell you in plain words what you actually hold before you decide whether anything needs to change. WhatsApp +1 443 595 9000 · keralarising.com Kerala Rising › Money › Protection · Protection 6
This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, or professional advice. Rules, rates, benefits, and claim or application decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.