Is the Sum Assured amount taxable?

The Sum Assured itself is not taxable in the hands of the nominee or beneficiary when paid out due to death. However, if the payout is received as a part of a maturity benefit, any bonuses or interest earned might be subject to tax depending on the specific circumstances.

How does an endorsement differ from a standard policy change?

Unlike general policy revisions, endorsements are formal amendments that modify specific terms without requiring a completely new contract, offering policyholders flexibility to customize their coverage.

Can blockchain be hacked?

While blockchain itself is highly secure, vulnerabilities can exist in smart contracts, private key management, and centralized exchange platforms.

Can I dispute a denied insurance claim?

Yes, you can dispute a denied claim by reviewing your policy, gathering additional evidence, and submitting an appeal with supporting documents. If unresolved, you may seek mediation, file a complaint with regulatory bodies, or consult an attorney for legal action.

Will my medical insurance cover me outside my home country?

Most standard health insurance policies do not cover medical expenses abroad, or they offer limited coverage. Travel insurance (medical) is specifically designed to fill this gap and provide comprehensive coverage for emergencies while traveling outside your home country.

Can Universal Life Insurance be used for estate planning?

Yes, UL is commonly used in estate planning to provide liquidity for heirs, cover estate taxes, and ensure wealth transfer. Since the death benefit is generally tax-free, it can help beneficiaries avoid financial burdens while also serving as a tool for charitable giving or business succession planning.

Can an insurer deny coverage?

Yes, insurers can deny coverage based on factors such as high-risk conditions, previous claims history, non-payment of premiums, or misrepresentation of information on an application. Applicants can seek alternative insurers or appeal a denial.

How do insurers determine which risks to transfer through reinsurance?

Insurers evaluate their risk exposure, financial strength, and the need for capital relief. They then transfer high-exposure or large-loss risks to reinsurers to mitigate their liabilities.