Instant Estate Creation:
- Pay premiums over time
- Get large sum at death
- Creates wealth you couldn't accumulate

Example:
Annual premium: ₹50,000
Term: 20 years
Total paid: ₹10,00,000
Death benefit: ₹1,00,00,000
Estate multiplication: 10x

Tax Benefits at Every Stage:

1. Premium Paid:
   - Section 80C deduction
   - Up to ₹1.5 lakhs

2. Death Benefit:
   - Section 10(10D)
   - Entirely tax-free
   - No income tax

3. Maturity Benefit:
   - Tax-free if conditions met
   - Premium < 10% of sum assured

Life Insurance Payout:
- Directly to nominee
- Doesn't go through estate
- No waiting for probate
- Immediate funds
- Privacy maintained

Features:
- Pure protection
- Highest cover at lowest cost
- No maturity benefit
- Fixed term

Estate Use:
- Income replacement
- Debt payoff
- Immediate family needs
- Maximum coverage per rupee

Features:
- Lifetime coverage
- Premium for fixed period
- Guaranteed death benefit
- Cash value accumulation

Estate Use:
- Legacy creation
- Estate liquidity
- Charitable giving
- Premium financing

Features:
- Insurance + investment
- Market-linked returns
- Fund options
- Long-term wealth creation

Estate Use:
- Wealth accumulation
- Flexible portfolio
- Tax-efficient growth
- Estate building

Features:
- Savings + insurance
- Guaranteed returns
- Fixed maturity benefit
- Bonus additions

Estate Use:
- Goal-based saving
- Conservative investors
- Known future value
- Education/marriage planning

Calculate Need:
Annual family expenses: ₹10,00,000
Years needed: 20
Required corpus: ₹2,00,00,000

Term Insurance:
Sum assured: ₹2 crore
Term: 20 years
Annual premium: ~₹20,000

Ensures family maintains lifestyle

Outstanding Liabilities:
Home loan: ₹50,00,000
Car loan: ₹5,00,000
Personal loan: ₹5,00,000
Total: ₹60,00,000

Insurance Cover:
- At least ₹60 lakhs for debt
- Plus income replacement
- Debts cleared immediately
- Family keeps assets

Key Person Insurance:
- On business owner/key employee
- Company is beneficiary
- Funds for transition
- Replace key person

Buy-Sell Funding:
- Partners insure each other
- Or company insures all
- Funds buy deceased's share
- Clean succession

Scenario:
- Business worth ₹5 crore
- Goes to son (active in business)
- Daughter gets what?

Solution:
- Life insurance for ₹5 crore
- Daughter as beneficiary
- Equal inheritance
- No business disruption

Plan:
- Insurance policy on your life
- Charity as beneficiary
- Tax-free gift to charity
- Doesn't reduce family inheritance
- "Wealth replacement" for charity gift

Future Proofing:
India currently no estate tax
But if reintroduced:
- Insurance pays estate taxes
- Estate preserved for heirs
- Liquidity at death

Nomination Ensures:
- Quick claim processing
- No legal tangles
- Immediate funds to family
- Bypass estate disputes

Options:
- Single nominee: Full amount
- Multiple nominees: Specify %

Example:
Wife: 50%
Son: 25%
Daughter: 25%

Update When:
□ Marriage
□ Birth of children
□ Death of nominee
□ Divorce
□ Major life changes

How to Update:
- Write to insurer
- Fill nomination form
- Get acknowledged

Conflict Resolution:
- Will prevails for ownership
- Nominee is custodian
- Legal heirs can claim from nominee
- But nominee gets quick payout

Best Practice:
- Align nomination with will
- Avoid confusion
- Document intentions

Benefits:
- Control over distribution
- Protection from creditors
- Professional management
- Structured payout
- Minor beneficiaries handled

Structure:
1. Create irrevocable trust
2. Trust owns policy
3. Trust pays premiums
4. On death: Trust receives payout
5. Trustee distributes per deed

Consider Trust If:
- Large sum assured (₹5+ crore)
- Minor children
- Spendthrift beneficiaries
- Want controlled distribution
- Multiple generation planning
- Business succession

Section 6 MWP Policy:
- For married men
- Beneficiaries: Wife and/or children
- Creates trust automatically
- Protects from creditors
- Irrevocable nomination

MWP Policy:
- Creditor-proof
- Not attachable for debts
- Bypasses succession law
- Direct to wife/children
- Tax benefits retained

Cannot Change:
- Beneficiaries (generally)
- Trust nature
- Surrender without consent

Not Suitable If:
- May need loan against policy
- Want flexibility
- Circumstances may change

Options:
1. Annual payment (most common)
2. Single premium
3. Limited pay (5, 7, 10 years)
4. Loan against assets

Consider:
- Cash flow requirements
- Investment alternative returns
- Inflation impact

Strategy:
- HUF takes policy
- HUF pays premium
- Karta is life assured
- HUF is beneficiary
- Tax deduction for HUF

Benefits:
- Additional 80C limit
- HUF builds assets
- Continuity with HUF

Problem:
Taking ₹50 lakhs cover when need ₹2 crore

Impact:
- Family struggles
- Lifestyle downgrade
- Children's education affected

Solution:
- Proper need analysis
- 10-15x annual income minimum
- Review regularly

Problem:
Buying endowment when need term

Impact:
- Low coverage for premium paid
- Inadequate protection
- Poor returns

Solution:
- Term for protection
- Separate investments
- Don't mix insurance and investment

Problem:
₹1 crore cover seems enough today

Reality:
- 6% inflation
- 10 years later: Value halves
- 20 years later: Quarter value

Solution:
- Increasing cover policies
- Regular coverage review
- Inflation-adjusted planning

Problem:
Premium not paid, policy lapses

Impact:
- No coverage when needed
- Premiums wasted
- No death benefit

Solution:
- Auto-pay premiums
- Annual review
- Revival if lapsed

Problem:
Hiding medical history

Impact:
- Claim rejected
- Family suffers
- Premiums lost
- Legal issues

Solution:
- Full disclosure
- Honest application
- Pay higher premium if needed

Keep Ready:
□ Original policy documents
□ Premium payment receipts
□ Nomination forms
□ Contact details of insurer
□ Agent details
□ Instructions for family

Tell Beneficiaries:
- Policy exists
- Where documents are
- How to claim
- Agent/advisor contact
- Approximate sum assured

After Death:
1. Notify insurer immediately
2. Submit death certificate
3. Submit claim forms
4. Provide policy documents
5. Complete KYC of beneficiary
6. Investigation (if any)
7. Claim settlement

Check Every Year:
□ Coverage still adequate?
□ Premiums paid on time?
□ Nominations updated?
□ Beneficiaries align with will?
□ Policy documents safe?
□ Family informed?

Increase Coverage When:
- Marriage
- Child birth
- Home purchase
- Business growth
- Increased responsibilities

Decrease/Stop When:
- Children independent
- Debts cleared
- Sufficient assets built
- Retirement

Life Insurance Role:
1. Provides immediate liquidity
2. Clears debts
3. Replaces income
4. Equalizes inheritance
5. Funds trusts
6. Charitable legacy

Coordinated with:
- Will
- Trusts
- Nominations
- POA
- Other assets

Create Estate Planning File:
□ List of all policies
□ Sum assured for each
□ Beneficiaries
□ Contact numbers
□ How it fits overall plan
□ Instructions to family