Term Insurance Protection Guide

Term life insurance represents pure protection designed to replace lost economic earning capacity upon the untimely demise of the breadwinner. Since term plans carry zero investment overheads, they provide the highest sum assured per rupee of premium. STATUTORY REQUIREMENT (SECTION 45): Under Section 45 of the Insurance Act 1938, no life insurance policy can be called into question by an insurer on any ground after 3 years from policy issuance or risk commencement. REGULATORY REQUIREMENT (FREE-LOOK PERIOD): Under current IRDAI Master Circular guidelines, policyholders enjoy a 30-day free-look period from the date of receiving electronic policy documents to review terms and request cancellation with pro-rata risk premium refund. STATUTORY OPTION (MWP ACT 1874): Salaried and self-employed individuals can endorse their term policy under Section 6 of the Married Women's Property (MWP) Act 1874. Claim proceeds from an MWP-endorsed policy create a trust exclusively for spouse and children, fully protected from business creditors and legal attachments.