Hi All,
Recently I have purchased a TERM Plan with 1Cr.I came to know that they need to keep the records in case of the death of the policy holder & need to communicate with IRDA.It brought 2 questions in mind which I would like to ask you.1) In case of death of the policyholder,is the sum assured given to the nominee is Taxable or Tax free?2) Secondly,in case of claim rejection,reasons are shown that the policyholder was alcoholic,etc.I am surprised,if the term plan provider says that the policyholder gave a wrong information.Does it mean that they are knowing the cause & still getting the premiums!