Buy Health, Life, or Motor Insurance

Term insurance: lapses after a 30-day grace period; no refund. Traditional plans: if 2-3 years paid, acquire paid-up value with reduced coverage. ULIPs: fund value stays invested, charges deducted; surrender after 5 years.

Yes, online purchase is IRDAI-regulated and 5-10% cheaper (no agent commissions). Claim process identical: nominee submits death certificate, claim form, policy, KYC. Insurers must settle within 30 days per IRDAI norm. Online term plans show 97-99% CSR.

Riders are add-on benefits at extra premium: Accidental Death Benefit, Critical Illness (cancer, heart attack, stroke), Waiver of Premium (on disability), Terminal Illness (advance payout). More cost-effective than separate policies.

The most financially dependent person typically spouses, children, or parents. Minors need an appointee. Update nominee after major life events. Without a nominee, payout enters legal estate and follows succession laws, causing delays.

Nominee is designated in the policy to receive the payout and acts as a custodian. Legal heir is entitled to assets under succession law. Supreme Court has clarified nominees are trustees; legal heirs can contest. Align nominee with your Will.

Grace period: 30 days (annual/semi-annual) or 15 days (monthly) after due date the coverage continues. Revival period: up to 5 years from first unpaid premium - restart lapsed policy by paying arrears + interest, possibly fresh medical exam.

Yes. Homemakers provide significant economic value through childcare, household management, and eldercare estimated at ₹3-8 lakh per year (or higher in urban India). A ₹25-50 lakh term plan for a 30-year-old can cost roughly ₹3,000-6,000 annually. This ensures that the surviving spouse can manage the cost of replacing these essential services.

Step 1: Nominee intimates claim. Step 2: Submit death certificate, policy, claim form, KYC, FIR (if accidental). Step 3: Insurer verifies (claims more than 3 years old cannot be challenged except fraud). Step 4: IRDAI mandates payout within 30 days after all the documents are received. Investigation must be completed in 90 days.

Not essential right now. But consider a small term plan if you have loans with co-signers, plan future dependents (locks in lower premiums), or employer life insurance is your only coverage (ends when you leave). Early purchase avoids health-related denials.

Term insurance covers you for a fixed period and pays only if death occurs during the policy term, so premiums are low. Whole life covers you up to 99 to 100 years, includes a savings value and costs much more. Term suits income protection while whole life suits estate planning.