Readers' Corner: Life insurance

To avail of a group insurance policy one needs to insure at least 50 employees, says Pankaj Razdan

How are the sum assured and death benefit for a life insurance policy calculated? In the case of a policyholder's death, will the family get both?
 
Sum assured of a life insurance policy is calculated on the basis age, gender, premium paying a term and the type of policy. For example, Shyam, a 36-year-old male opting for a traditional participating whole life insurance policy for a premium payment term of 15 years, will have a  sum assured of Rs 2.1 lakh for a premium of Rs 18,262. Whereas, Ram, a 46-year-old male opting for the same premium term, will