Start with the policy schedule and benefit illustration, then verify the people, premiums, benefits, exclusions, surrender rules, riders and nomination details against the policy wording.
Begin with the policy schedule
The policy schedule is usually the fastest way to identify the contract you actually own. Confirm the insurer, product name, policy number, unique identification number if shown, policyholder, life assured, commencement date, term, premium amount and premium frequency.
Do not assume the person paying the premium is always the person whose life is insured. The policyholder, proposer and life assured can sometimes be different people.
Check the benefit illustration separately
For savings-oriented policies, the benefit illustration may show values across future years. Read the column headings carefully. A projected value is not automatically guaranteed merely because it appears in a table.
Look for explicit labels such as:
- guaranteed benefit;
- non-guaranteed benefit;
- vested bonus;
- future bonus assumption;
- maturity benefit; and
- death benefit.
Never add guaranteed and illustrative values together without understanding what each column represents.
Identify every person connected with the contract
Write down the names shown for the policyholder, proposer, life assured, nominee, appointee and assignee. If a name is outdated or the relationship has changed, contact the insurer to understand the applicable servicing process.
Nomination helps identify the person authorised to receive policy money in the relevant circumstances, but inheritance and beneficial ownership can involve separate legal questions. Obtain legal advice where succession rights are disputed or complex.
Map the premium commitment
Confirm:
- the premium amount and frequency;
- how many years premiums are payable;
- the total policy term;
- the grace period;
- what happens after a missed premium; and
- whether revival is available and on what terms.
The premium-paying term and the policy term are not always the same.
Separate the benefits by event
Create three headings: death, survival and maturity. Record what is payable under each event and which conditions apply. Then list riders separately. A rider may have its own definitions, exclusions, expiry date and claim requirements.
Find the exit and loan provisions
Search for “surrender”, “paid-up”, “revival” and “policy loan”. The amount available today may not be obvious from the policy document alone. Ask the insurer for a current official quotation before making a decision.
Read exclusions and claim requirements
Review exclusions, waiting periods where applicable, claim-notification requirements and the documents that may be requested. Do not rely only on a sales brochure—the issued contract and official insurer records are the relevant sources for your policy.
A useful one-page summary
After reading, your summary should contain the contract identity, people, premiums, benefits, riders, important dates, nominee details, current status and unanswered questions. If any number cannot be tied back to a page or table, mark it for confirmation rather than guessing.
Sources and further reading
- IRDAI circulars, including the Master Circular on Life Insurance Products
- LIC policy guidelines and helpline
- LIC policy conditions