You Need ₹3 Crore.
You Bought
₹50 Lakh.

Use the DIME formula: Debts (home loan, car loan, personal loan) + Income replacement (15–25x annual salary) + Mortgage (outstanding home loan) + Education (₹20–50L per child). For a ₹15 lakh salary with a ₹50L home loan and 1 child: ₹2.25 Cr income replacement + ₹50L loan + ₹30L education = ₹3+ crore. Most Indians buy ₹50L–₹1 Cr — that's dangerously low.

Section 45 of the Insurance Act says: after your policy has been active for 3 continuous years, the insurer CANNOT reject your claim for non-disclosure or misrepresentation — even if you hid a pre-existing disease. Only outright fraud or non-payment of premiums can void the policy after 3 years. This is the most powerful consumer protection in Indian insurance, and most policyholders don't know it exists.

Amount Settlement Ratio (ASR) is more important. CSR (Claim Settlement Ratio) counts the NUMBER of claims settled — but includes all life insurance types (endowment, ULIP, money-back), not just term. An insurer can settle 99% of claims by number but pay only 85% of the claimed amount. ASR shows the actual rupee value paid vs claimed. Check both in the IRDAI annual report before buying.

Yes — smokers pay nearly 100% more. If you quit for 12+ months, you can apply for a new policy as a non-smoker (you'll need cotinine/nicotine tests). Your premium drops by roughly half. You can also surrender the old smoker policy and buy a new non-smoker policy — but only if you're healthy and can pass medical underwriting. The savings over 30 years can be ₹3–5 lakh.

Yes — after a waiting period. Most policies exclude suicide within the first 12–24 months. After that, the nominee receives 80% of the sum assured or the full amount minus premiums paid (varies by insurer). Many people wrongly believe suicide is permanently excluded — it's not. After the waiting period, it's treated like any other claim.

Add: Waiver of Premium (free or near-free — keeps your cover alive if you're permanently disabled). Maybe: Accidental Death Benefit (10–15% premium increase — worth it if you commute by two-wheeler or travel frequently). Skip: Critical Illness rider (adds ~26% to premium for ₹10L cover — a standalone health insurance policy is usually better and more comprehensive).

Essential documents: original policy bond or policy number, death certificate (from municipal authority), nominee's ID proof and photos, nominee's bank account details (cancelled cheque), claim form from insurer website. If accidental death: FIR copy, post-mortem report, police investigation report. If hospitalized before death: hospital discharge summary, treating doctor's certificate. Keep these in a known, accessible location — not in a bank locker your family can't access.

Usually no. Bank group term insurance is expensive (20–40% more than standalone), has reducing cover (decreases as you repay the loan), and the bank is the beneficiary — not your family. Buy a standalone term plan with level cover: it's cheaper, your family is the beneficiary, and the cover stays constant even as your loan reduces. You can always use the payout to clear the loan AND have surplus for your family.