What Should Your Family Know About the Policies You Hold?
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At the end of FY24, Indian life insurers held ₹20,062 crore in unclaimed money payable to customers or their families. One common reason is that relatives simply did not know a contract existed. If you manage household finances and pay the premiums, ask yourself: could your loved ones locate these benefits and make a claim without your help?
Why Families Miss Money They’re Entitled To
A claim may be missed because relatives are unaware of an existing plan, cannot find its reference number or do not know which company issued it. Other problems include an outdated nominee, an inactive phone number or confusion about workplace benefits. Some households also assume that employer-sponsored or mortgage-linked arrangements will meet every need without checking their actual terms.
These gaps are easier to fix while you are available.
Start By Listing Every Policy You Hold
Consider Rohan, 38. He thought he had only a term plan and workplace cover. A closer review revealed six products: a ₹1.5 crore personal term plan, a ₹5 lakh endowment contract bought by his father in 2012, employer-provided group cover, corporate medical benefits, mortgage-linked cover and an annual family floater. His wife knew about just two.
Collect physical documents, search your inbox for e-certificates and ask HR for group benefit information. This inventory can also help you assess whether the best life insurance plan suits your household or whether existing arrangements leave gaps.
What The List May Reveal
Rohan's nominal life cover totalled ₹2.54 crore: ₹1.5 crore from his personal plan, ₹54 lakh through his employer (three times his ₹18 lakh salary), ₹5 lakh from the endowment and ₹45 lakh linked to his home loan.
But the headline figure was misleading. Workplace benefits usually end when employment does. Mortgage cover pays the lender to settle the outstanding balance, not the family, and its value falls as the debt is repaid. If Rohan died between jobs, his dependants might receive only ₹1.55 crore from the personal and endowment products.
A standalone term plan may help close a shortfall when workplace benefits are temporary or a lender is the primary beneficiary.
Add each new product to your record as soon as it is issued.
What Each Record Should Include
For every contract, note:
- Provider name, reference number and product category.
- Sum assured, insured person's name and nominee.
- Premium amount, payment date and method.
- Where the certificate is stored: at home, in email or in an e-insurance account.
- Claims helpline, agent or relationship manager.
- For mortgage-linked arrangements, the lender and loan account number.
This gives relatives a clear starting point instead of forcing them to search old bank statements.
Check The Nominee
Review beneficiary details after marriage, childbirth or divorce. Older contracts may still name a parent or someone else whose circumstances have changed. Under IRDAI's 2024 framework, nomination requirements apply to life policies; verify that any update has been recorded by checking the revised schedule or insurer portal.
Nominee rights can be nuanced. Where family or inheritance matters are complex, seek professional advice and consider making a will.
Where To Store The Information
Keep a printed copy at home and a digital version in a folder your spouse can access. Tell named beneficiaries where the documents are kept, and consider informing one trusted relative too. Passwords are not necessary; the provider's name and reference number are useful starting details.
An e-insurance account can also bring multiple electronic certificates together.
Finding A Forgotten Policy
Even a careful inventory can miss an older contract. Life insurers must display unclaimed amounts of ₹1,000 or more on their websites and provide a search facility. Relatives may search using the policyholder's name, date of birth, PAN or reference number.
IRDAI's Bima Bharosa portal links to insurer search pages, which can help when the company is unknown. Let your family know this option exists.
Review It Annually
Choose a fixed date, such as tax-filing week or your health plan renewal. Confirm premiums are current, nominees and contact numbers are accurate, and workplace benefits reflect your present job. Update the record after major events such as a new loan, marriage, childbirth or a job change.
A short review now can save loved ones months of searching later.
Disclaimer: No Business Standard Journalist was involved in creation of this content
Topics : Max Life Insurance
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First Published: Nov 03 2026 | 6:39 PM IST