The insurance business in India isn’t just growing, but also becoming more sophisticated in terms of product offerings. To help readers keep ahead of developments in this business, Mint features a Q&A on insurance every Monday.

My brother had taken a unit-linked insurance policy (Ulip) two years ago. He recently realized that he can make a partial withdrawal or surrender the policy after a three-year lock-in period. Is the fund value that he receives from the policy taxable?

The fund value received by your brother will be exempted from income tax. Under Section 10 (10d) of the Income-tax Act, 1961, premiums qualify for deduction under Section 80c of the Act. That is, benefits—including partial withdrawals, surrenders and maturity proceeds—qualify for deduction.

I am 28 years old, and plan to buy a life insurance policy. How can I add to my insurance against an accident or a fatal mishap?

Most companies will offer riders on the base policy to offer benefits in case of disability arising from accident. Riders are flexible options that add value to the customer’s life insurance policy. They allow customization of a life insurance policy to suit specific needs of customers. Thus, you could opt for a personal accident benefit rider that is a low-cost, additional benefit paid to the nominee in case the insured’s death is caused by an accident. It is very important to always read sales brochures and policy documents so that you are aware of the plan in its entirety.

Readers are welcome to write in with their queries to ­askmint@livemint.com. The questions will be answered by senior executives from leading insurance firms.

This week’s expert is Rajesh Relan,managing director, MetLife India Insurance Co. Pvt. Ltd.