A life insurance policy in Nepal is a contract with a licensed life insurer (e.g. Nepal Life, LIC Nepal, National Life, Reliable Life, Citizen Life, MetLife Nepal) where you pay regular premiums and the insurer pays a lump sum (and/or maturity/survival benefit) to your nominee on death or to you on maturity. The main types are endowment (savings + protection, maturity benefit), term (pure protection, low premium, no maturity value), whole-life (lifelong cover), child/education plans (proposer is parent/guardian, child is the insured life) and pension/annuity plans (build a corpus that pays a regular pension). It is regulated by the Nepal Insurance Authority (NIA) under the Insurance Act 2079, and buying involves completing a proposal form plus a KYC form, paying the first premium, and — depending on age and sum assured — undergoing medical underwriting before the policy is issued. Premiums on life policies also qualify for income-tax deduction up to the statutory limit, making endowment and pension plans popular savings vehicles in Nepal.
Plan details
- Death benefit full Sum Assured plus 10% funeral expense (capped Rs 50,000)
- Accidental death: 100% SA plus 10% funeral expense (capped Rs 50,000)
- Accidental total permanent disability: 100% Sum Assured
- Affordable micro cover starting Rs 5,000 SA
- One-year term renewable every year
- No maturity benefit (pure protection)
