Life cover that would actually replace your income

Add up your family's yearly expenses without you multiplied by the years they would need support, plus outstanding loans and future goals such as education, and subtract savings they could use. For many salaried families this lands between 10 and 20 times annual income, but the calculation matters more than the rule of thumb. Use the life cover calculator to work out your own figure.

No, for individual policies. From 22 September 2025, premiums for individual life insurance policies, including term plans, ULIPs and endowment policies, are exempt from GST. Group policies are treated differently. See the GST exemption guide.

A sum received on the death of the insured person is exempt from income tax, including under the conditions that limit the exemption for maturity proceeds. Maturity proceeds can be taxable for high-premium policies. The rules moved into the Income-tax Act, 2025 from April 2026; check the current section references on the Income Tax Department website. See tax on life insurance payouts.

Under IRDAI's current policyholder protection framework (2024), insurers are reported to have 15 days from receipt of all documents for death claims that need no investigation, and 45 days where investigation is needed, with interest payable on delays. Confirm the current timelines in the IRDAI master circular and your policy document. See the claim process guide.

A policy written under Section 6 of the Married Women's Property Act, 1874 is held in trust for the wife and/or children named in it. The proceeds cannot be claimed by the policyholder's creditors and do not form part of their estate. It must be chosen when you apply. See the MWP Act guide.

Under Section 45 of the Insurance Act, 1938, no policy can be called in question on any ground after three years from the date of issue, revival or rider addition. Within those three years an insurer can repudiate for fraud or for misstatement or suppression of a material fact, but must state its grounds in writing. See claim rejection and Section 45.

First complain in writing to the insurer's grievance officer. If the reply is unsatisfactory or there is no reply within 30 days, you can go to the Insurance Ombudsman, a free route for disputes where the compensation sought does not exceed ₹50 lakh, within one year of the insurer's reply. You can also register a complaint through IRDAI's Bima Bharosa system. See the Ombudsman guide.

They are a useful base, especially for households with no other cover, but ₹2 lakh replaces only a few months of income for most families. Treat them as an addition to a term plan sized to your needs. See PMJJBY and PMSBY explained.