Question 1

What is the minimum age to buy life insurance in Nepal?

Accepted Answer

Most Nepali life insurers accept applicants from age 16-18 (with guardian consent) up to age 60-65. The ideal time to buy is in your 20s-30s when premiums are lowest.

Question 2

What happens if I miss a premium payment?

Accepted Answer

Most policies offer a 30-day grace period. After that, the policy may lapse. However, you can revive a lapsed policy within 2-5 years by paying overdue premiums with interest.

Question 3

What is the difference between term and endowment life insurance?

Accepted Answer

Term insurance provides pure death coverage at low cost with no maturity benefit. Endowment insurance combines death cover with savings — you receive a lump sum at maturity if you survive the term.

Question 4

How is the bonus calculated on life insurance policies?

Accepted Answer

Each year the insurer declares a bonus per Rs 1,000 of sum assured, and the rate can differ by policy term. Bonuses accumulate over the term and are paid with the sum assured at maturity or on death. They are declared annually and are not guaranteed.

Question 5

Can I take multiple life insurance policies in Nepal?

Accepted Answer

Yes, there is no legal limit on the number of policies. However, total sum assured across all policies should be reasonable relative to your income for claims to be honored.

Question 6

What documents are needed to claim life insurance?

Accepted Answer

Death certificate, original policy document, claimant's ID, nominee's bank details, and a completed claim form. For accidental death, an FIR and post-mortem report may also be required.

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