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Can a life insurer withdraw its term policy, which is around three years old, without giving any notice or taking consent from the policyholder?

—Name withheld on request


No, once a plan is sold by an insurer, they cannot make any modification to the plan. If you are paying regular premium, then the insurer is obliged to keep your policy in force.


I am planning to migrate abroad and eventually plan to take up citizenship there. I have term life insurance in India and my parents would continue living in India (they are the nominees). Would immigration and citizenship change impact the policy or other conditions in case of any untoward incidents?

—Name withheld on request


Term life insurance issued in India has a worldwide coverage. So, irrespective of your country of domicile at the time of an incident, the claim will be payable. The claim amount will be payable in India and in rupees. Since your nominees are Indian residents, the claim process will go through smoothly.


My friend had bought a term plan 10 years ago but he didn’t choose any nominee and died a month ago. There is no one in his family. His parent also died a few years ago. How will the insurer settle the claim?

—Name withheld on request


A life insurance claim can be made even in the absence of a nominee. The legal heirs can make the claim. To file the claim, the heirs need to submit a succession certificate. Such a certificate is issued on the basis of the Will of the deceased or based on the legal heirs as identified by succession laws.

Abhishek Bondia is principal officer and managing director,

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