Prices Increasing soon Prices Increasing Soon

Everything You Need To Know About Life Insurance Death Benefits

When it comes to protecting the family member’s future, life insurance plans are one of the common and preferred means among Indians. Life insurance comes with a number of advantages as it financially supports your dear ones after you are not with them. Most life insurance plans include a death benefit that is paid to your nominee/beneficiary after your death. That amount can be used to repay outstanding loans/debts, replace the lost income, and covers funeral expenses.
This in-depth article covers every detail that one should be aware of about life insurance death benefits.

Read more
Gets ₹1 Cr. Life Cover at just
COVID-19 Covered
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 10% discount for buying online
Only certified experts will call you on 100% recorded lines
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Life is Unpredictable! Protect your family’s future
Get ₹1 Crore Life cover starting from ₹384/month+
+91
Secure
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.

What is Death Benefit?

Simply put, Death Benefits are the guaranteed or assured amount provided to the nominees/ beneficiaries in the event of the death of the policyholder. The death benefit of life insurance is paid within a month (30 days) of filing the claim in most situations. The policyholder has the option of selecting the type of death benefit payout. You can either select to receive a lump sum amount at one time or select to receive a small amount over a large time period.

What is Covered Under Life Insurance Death Benefit?

One of the important things to understand is the scenarios in which the nominees/beneficiaries can receive the sum assured (life cover) amount as a death benefit in a life insurance plan. Before applying for the plan, they should know what is covered under the life insurance after death:

  • In case the death of a policyholder occurs because of health issues or natural causes covered in the policy

  • In case the death of the policyholder occurs due to an accident. An individual should not have abused drugs/intoxicated at the time of the accident.

  • In case the policyholder commits suicide, the death insurance policy will pay the life cover only if the suicide occurs after at least a year of the policy being active or policy revival. If suicide occurs within the first year of the policy, only 80/90% of the premiums paid will be returned to the nominee.

one crore term plan
plus

Term Plans

₹1
Crore

Life Cover

@ Starting from ₹ 16/day+

₹50
LAKH

Life Cover

@ Starting from ₹ 8/day+

₹75
LAKH

Life Cover

@ Starting from ₹ 12/day+

What is Not Covered Under Life Insurance Death Benefit?

The different types of death not covered by the term plan are as follows:

  • If the life assured passes away because of suicide in the 1st year of purchasing the policy

  • If the policyholder’s death occurs because of any self-caused injuries or hazardous activities

  • If the policyholder passes away due to any STDs i.e., Sexually Transmitted Diseases like AIDS

  • If the policyholder passes away because of using alcohol or drug

  • If the policyholder dies because of a natural disaster like a tsunami or earthquake

  • If the policyholder passes away due to participation in illegal activities like riots, wars, or other criminal activities

Tax Savings on Life Insurance Death Benefits

As per the new Budget 2023, the death benefits for a death insurance policy are completely tax exempted under Section 10(10D) of the ITA, 1961. This allows your family to receive tax free benefits in your absence. On the other hand, the maturity benefits of death insurance with average premiums of more than 5 Lacs will be taxed. However, if your death insurance policy has average premiums under 5 Lacs, the maturity benefit will be tax free. The life assured can also receive tax benefits on the term death insurance premium paid. Policyholders can also avail of a deduction of up to Rs. 1.5 Lacs u/s 80C of the ITA.

one crore term plan

Secure Your Family Future Today

₹1 CRORE

Term Plan Starting @ ₹449/month+

Get an online discount of upto 10%+

Compare 40+ plans from 15 Insurers

+Standard T&C Applied

Cash Value

Whole life insurance is a policy where your plan will last for a whole lifetime. In this, a section of premiums paid by you will be secured as a component of the cash value in a savings account. In case of your death, your nominee/beneficiary shall get this cash value along with the death benefit.

However, if you need cash urgently, you also have the option to cancel your plan, where the cash value will be paid out to you completely. This means, that by canceling the plan you will be surrendering all the advantages related to the policy.

How To Claim Life Insurance with Death Benefit?

To claim death benefit insurance, perform the following steps-

Step 1: Read all the Policy Documents Carefully

Before informing the insurer, carefully go through the policy document and find out whether your existing condition is eligible for claiming death insurance policy. Read the list of exclusions to ensure that the policyholder’s death is not in the exclusions. And, it is also important to check that the plan is still active and the premium amounts have been paid on a regular basis.

Step 2: Inform the Insurer

Inform the insurance company about the policyholder’s death as soon as possible. Insurers are required to perform the life insurance claim settlement within 30 days of the death claim. This simply means that the more you delay the intimation of claim, the more time company will take for the payout.

Step 3: Submit the Intimation Application

After intimating the insurer, you will need to fill out and submit a claim intimation application to the insurer. You can file a claim by visiting the nearest insurer’s branch or by logging into the insurer’s official website.

Step 4: Collect Relevant Documents

Ask the insurer for some relevant documents and start collecting them. Recover the original documents of the policy and submit them along with other documents. The following documents are required:

  • Original Documents of Policy

  • Certificate of Death

  • Beneficiary’s ID Proof

  • Policyholder’s age proof

  • Medical Certificate

  • Cremation certificate

  • Records of hospital

In Unnatural death:

  • FIR

  • Report of Post-mortem

Step 5: Payout

The policyholder can choose the type of life insurance payout before death. The death benefit insurance payout can be paid in form of a lump sum or monthly installments i.e., through assured income to the nominee.

Wrapping It Up!

The life insurance death benefit is a smart way to ensure the financial protection of your loved ones. After your death, your family will not have to struggle trying to meet their daily expenses. They can also use the death insurance payout amount to pay off any remaining loans or to take care of large expenses such as their marriages, children’s education, etc.

FAQs

  • Q. Can I get death benefit in LIC policy?

    A. Yes, you can get death benefits in LIC policy, given that the policy has death benefits listed under the features. You can go through the LIC policy documents to see if your LIC death insurance policy offers death benefits or not.
  • Q. What is sum assured in LIC?

    A. Sum assured in LIC refers to the life cover amount your nominee will be eligible to receive on the death of the policyholder during the policy term. While buying the most suitable life insurance death benefit, you should check the sum assured to ensure it fits your family’s needs.
  • Q. What are the benefits of term life insurance?

    A. The main benefit of term life insurance is that it is a death benefit insurance offering death benefits to the nominee on the policyholder’s death during the policy tenure. Other than that, it also provides various other benefits like rider coverage, life stage benefits, return of premiums, and special exit benefits.
  • Q. What is death insurance policy in India 2023?

    A. Death insurance policy in India 2023 refers to the death benefit insurance that offers a sum assured to the beneficiary in the policyholder’s absence. The amount can help the nominees pay their bills, take care of remaining loans, and other monthly expenses.

Different types of Plans


Premium By Age

Life insurance articles

Recent Articles
Popular Articles
What High Net Worth Individuals (HNIs) Do To Secure Their Family?

09 Aug 2023

High net worth individuals often opt for life insurance plans to
Read more
A Review Of ICICI Prudential Life Insurance

28 Jun 2023

“Policy Bazaar insurance clarified the term policy for me, so
Read more
A Review Of HDFC Life Insurance

27 Jun 2023

“I recently bought an HDFC term plan and it is the best
Read more
Best Life Insurance Policy in India with High Returns

20 Jun 2023

The best life insurance policy in India is a type of life
Read more
Which Insurance is Best in India?

20 Jun 2023

Insurance is a financial product that transfers the risk to a
Read more
How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
Last year, Mr. Rajiv Verma bought a Child LIC policy to provide financial security for his kid's future. However
Read more
SBI Life Insurance 50,000 per year Plan for 5 Years
Life insurance is about the financial protection of the family and working for life’s milestones through smart
Read more
Life Insurance Claim Settlement Ratio
The Claim Settlement Ratio is a percentage that represents the ratio of claims paid to customers by an insurance
Read more
PLI Surrender Value Calculator
PLI Surrender Value Calculators have proven to be one of the simple tools for digitally savvy customers. PLI
Read more
SBI Life Insurance Policy Surrender Value Calculator
Are you planning to surrender your SBI life insurance plan? But, are you aware of the amount attached to the
Read more

top
View Plans
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL