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Insurance
Most people put off buying term insurance longer than they should. It’s not exciting, there’s no maturity payout to look forward to, and premiums feel like money going nowhere – until the day it matters. A term insurance plan does one job well: if the policyholder dies within the policy term, the nominee gets a lump sum. No investment angle, no market-linked returns, just protection. R9 Wealth’s role is to line up plans from several insurers side by side, so the choice isn’t limited to whatever one agent happens to be pushing.
Pick a term – 10, 20, sometimes 30 years or more – and pay a premium that’s far lower than what a savings-linked policy would cost for the same cover. Die within that window, and the sum assured goes to the nominee. Outlive it, and in a standard plan, nothing comes back (return-of-premium versions exist, but they cost more for exactly that reason). The absence of a payout on survival is precisely what keeps the premium so low.
One thing changed the math on this recently: since September 22, 2025, individual term insurance premiums no longer carry GST. That 18% is gone. A plan that used to run ₹35,400 a year (₹30,000 base plus GST) now costs the ₹30,000 base amount, full stop. Group term plans bought by employers haven’t seen the same relief – those still carry 18% GST.
While term insurance offers financial security, Health Insurance helps manage unexpected medical expenses.
Parameter | Indicative Detail |
GST on Premium | 0% for individual policies; group term plans still attract 18% |
Tax Deduction on Premium | Up to ₹1.5 lakh a year under Section 80C, old tax regime only |
Death Benefit Taxation | Tax-free for the nominee under Section 10(10D) |
Claim Settlement Ratio (industry) | Most established insurers sit above 95%; several are close to 99% |
Claim Payout Timeline | IRDAI expects death claims settled within 120 days of intimation |
A couple of things trip people up here. The ₹1.5 lakh deduction under Section 80C only kicks in if the old tax regime is chosen – switch to the new regime and that benefit disappears. The tax-free death payout under Section 10(10D), though, holds regardless of which regime the nominee happens to be under. And when comparing insurers, the Claim Settlement Ratio that IRDAI publishes every year is a reasonable starting filter – 95% and above is generally taken as solid – but it shouldn’t be the only thing looked at. How consistent that number has stayed across years, the insurer’s solvency position, and how fast claims actually get paid in practice all count too.
Looking for complete protection for your loved ones? Explore our Family Health Insurance plans.
Age, sum assured, policy term, smoking status, and general health – these are what an insurer’s pricing engine cares about. The catch is that age only moves in one direction. Waiting a year or two to “think it over” means paying more for the exact same cover later, purely because the applicant got older in the meantime. R9 Wealth’s comparison exists mainly to stop people from either overpaying for a plan that doesn’t match their actual needs, or underinsuring because the first quote they saw looked expensive.
Identity Proof – Aadhaar Card, PAN Card, Passport, Voter ID, or Driving License
Address Proof – Aadhaar Card, Passport, Voter ID, Driving License, or a recent utility bill
Income Proof
Date of Birth Proof – Birth certificate, Aadhaar Card, PAN Card, Passport, or Driving License
If the insurer asks for it – a recent passport-size photo, medical reports, or details of any other insurance policies already held
None of this is fixed across insurers – the exact list shifts depending on age, income, and how much cover is being applied for. R9 Wealth checks what the shortlisted insurer specifically wants before the application goes anywhere, which saves a round of back-and-forth later.
If you require immediate financial support, compare our Personal Loan options.
Step 1 – Intimate the claim. The nominee lets the insurer know through the website, customer care, a branch, or the advisor who originally sold the policy.
Step 2 – Hand over the documents. Typically, the claim form, death certificate, the original policy document, and the nominee’s own identity and address proof – plus medical or hospital records if the death followed an illness or accident.
Step 3 – The insurer verifies everything. Documents get checked against what’s on file for the policy.
Step 4 – Payout. Once verification clears, the money goes to the nominee per the policy terms. IRDAI’s outer limit for this is 120 days from intimation, though well-rated insurers routinely settle much faster when the paperwork is in order from the start.
Feature | Term Insurance | ULIP | Endowment Plan |
Purpose | Pure life cover | Life cover + market-linked investment | Life cover + guaranteed savings |
Premium | Lowest for a given cover | Higher, partly invested | Higher, partly saved |
Maturity Payout | None (unless return-of-premium) | Market-linked value | Guaranteed sum |
Works best for | Maximum cover, minimum outlay | Long-term, investment-linked goals | Conservative savers wanting a guarantee |
Talk to one insurer and that’s the only pricing and feature set on offer. R9 Wealth lines up several before recommending anything, weighing the sum assured, premium, riders, and claim track record together rather than in isolation.
What R9 Wealth Does | Why It Matters |
Compares plans across leading insurers | A better match for both budget and actual cover needed |
Recommends coverage based on the individual’s profile | Cover that fits income, debts, and dependents – not a generic number |
Handles the documentation | Fewer delays, fewer resubmissions |
Guides the nominee through a claim | No one left guessing what to do at the worst possible time |
Assigns one point of contact | No chasing different departments for updates |
Build long-term financial stability by combining insurance with disciplined Mutual Fund investments.
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A policy that pays a lump sum to the nominee if the policyholder dies within the chosen term. There’s no savings or investment component built in, which is why the premium stays low
Not on an individual policy. GST on individual term insurance dropped from 18% to 0% on September 22, 2025. Group term plans bought by employers are the exception – those still carry 18% GST.
Premiums can get a deduction of up to ₹1.5 lakh a year under Section 80C, but only under the old tax regime. The death benefit itself stays tax-free under Section 10(10D) no matter which regime the nominee falls under.
95% or higher is generally seen as dependable. A number of leading Indian insurers currently report ratios near 99%, going by IRDAI’s annual figures.
IRDAI’s outer limit is 120 days from when the claim is intimated. Most reputable insurers move faster than that in practice, assuming the documentation is complete from the start.
Depends on age, how much cover is being asked for, and the health details declared. Younger applicants going for moderate cover often skip the test; higher sums or older ages usually require one.
Yes. In place of salary slips, self-employed applicants submit ITRs for the last 2-3 years, bank statements, and sometimes audited financials or a CA certificate.
No. R9 Wealth is an advisory platform that compares term insurance plans across insurers and helps with paperwork and claim guidance. The policy is issued, and any claim decision is made, by the insurer – not by R9 Wealth.
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Tax benefits depend on the provisions of the Income Tax Act and may change with future amendments. GST and other charges follow prevailing government regulations, which are subject to revision. R9 Wealth acts solely as an insurance advisory and facilitation partner and is not an insurer.
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At R9 Wealth, we provide personalised solutions for loans, insurance, mutual funds, and wealth management to help you achieve your financial goals.
01-041, First Floor MGF Metropolis Mall MG Road, Sector 28 Gurugram – 122002 India
Monday to Saturday: 9:00 AM - 6:00 PM Sunday: Closed
+91 99712 95533
info@r9wealth.com
Office Space Unit No. 01-041, MGF Metropolis Mall, Mehrauli Gurugram Road, Sector 28, Gurugram, Haryana - 122002
Contact No: +91 9971295533
Email: info@r9wealth.com
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. Past performance is not an indicator of future returns. R9 Wealth is an AMFI registered Mutual Fund distributor with ARN – 334421 (ARN Validity Period: 18-July-2025 to 17-July-2028). R9 Wealth and its brand assets are trademarks of R9 Wealth Financial Services.
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