Why your family should know about your Insurance and investments in 2026

Financial planning in 2026 is no longer only about buying the right Insurance or investment product. It is also about ensuring that the people who may need those assets can find and use them when required. Aditya Birla Sun Life Insurance (ABSLI) offers Life Insurance solutions, while the Insurance sector operates under the regulatory oversight of the Insurance Regulatory and Development Authority of India (IRDAI).

With evolving financial products, digital accounts, and changing tax and regulatory requirements, keeping your family informed can reduce uncertainty during an emergency. Your nominees and family members should know what policies you hold, where the documents are stored, who to contact, and what financial commitments exist.

As per ABSLI's annual audited claims data submitted to IRDAI for FY 2025-26, 98.86% of individual claims were settled, with ₹630+ crore in total claims settled. This highlights why your family should not only know that insurance exists but also understand how to access the relevant policy information.

What should your family know about your Insurance Policies?

Your family does not need to understand every technical detail of your Insurance Policies. They should, however, know the basic information required to locate the policy and initiate a claim or service request. Maintain a simple record containing:

• Insurer and policy name
• Policy number
• Sum assured
• Policy term
• Premium-payment frequency and due dates
• Nominee details
• Customer-service contact information
• Location of the policy document
• Details of any riders or additional benefits
  
  

Keep this information updated whenever you buy, renew, modify, or discontinue a policy.

Why is it important to explain your nominee and policy details?

A nominee is an important part of a Life Insurance Policy because the nominee is the person designated to receive the policy benefit, subject to the applicable legal and policy framework. Your family should know who has been nominated and where the nomination details are recorded. If your circumstances change after marriage, the birth of a child or other major life events, review whether your nomination and overall estate arrangements remain appropriate.

Avoid relying solely on memory. Keep the latest policy document and relevant records accessible to the people who may need them.

How should you organise information about your investments?

The same principle applies to investments. Your family should be able to identify your major financial assets without having to search through multiple accounts or devices. Create a consolidated financial inventory covering:

• Bank Accounts and deposits
• Mutual Funds and securities
• Retirement accounts
• Insurance Policies
• Loans and other liabilities
• Property and other major assets
• Relevant account statements and documents
  
  

You do not need to share passwords or sensitive authentication details in an unsecured document. Instead, explain where secure access information and important documents are maintained and who should be contacted when necessary.

How can your family understand the different types of Life Insurance you own?

Understanding the different types of Life Insurance can help your family distinguish between policies that provide pure protection and those that may include savings or investment components. Term Insurance is primarily protection-focused and generally provides a death benefit during the policy term. Other Life Insurance products may combine Insurance with savings, guaranteed benefits, or market-linked investments.

Create a short summary for each policy explaining its purpose, benefit structure, policy term, and premium obligation. This makes it easier for your family to understand what each policy is intended to achieve.

Why should you document your Life Insurance premium commitments?

Your family should know which Insurance premiums are recurring commitments and when they are due. This is particularly important for policies where continued premium payment is required to keep benefits active, subject to the policy's terms. Record the premium amount, payment frequency, due date and payment method for every relevant policy.

If a premium is missed, the policy may be affected according to its applicable grace period and lapse provisions. A simple annual financial calendar can make these commitments easier to track.

How can a Term Plan premium calculator help with your protection planning?

A Term Plan premium calculator can help estimate the cost of life protection based on information such as age, sum assured, policy term, lifestyle, and other inputs. If your family responsibilities have increased, you can use a calculator to review whether your existing cover is still appropriate or whether additional protection may be required.

The ABSLI Term Insurance Calculator provides an indicative estimate based on the details entered. The final premium and eligibility remain subject to underwriting and applicable policy terms.

How should you document Personal Loans?

Loans are liabilities that can affect your family's financial position. Your family should know about major outstanding Loans, their lenders, approximate outstanding amounts, and where the Loan documents are maintained. Personal Loan Insurance may be available for specified risks associated with a Personal Loan, depending on the product and policy terms. However, it should not automatically be treated as a substitute for adequate life insurance.

When reviewing your Life Insurance needs, include outstanding Personal Loans and other liabilities in the calculation so your family's potential financial obligations are properly considered.

What does ABSLI's latest claim settlement ratio tell policyholders?

Claim settlement ratio is one useful indicator when evaluating an insurer, but it should be considered alongside policy terms, exclusions, product suitability, and service.

ABSLI's FY 2025-26 claims data states that, as per annual audited figures submitted to IRDAI, 98.86% of individual claims were settled, with ₹630+ crore in total claims settled. The figure is a historical performance indicator and does not guarantee the outcome of any individual future claim. Claims remain subject to the applicable policy terms, disclosures and conditions.

How can you make your Insurance and investment information easier for your family to access?

Start by creating one secure financial information checklist. It can include the insurer, policy number, nominee, policy term, premium due date, investment account details, major liabilities, and the location of supporting documents. Review the checklist at least once a year and whenever there is a major change in your income, family structure, assets or liabilities.

You can also share a simple explanation of the purpose of each major financial product so your family knows which assets are intended for protection, savings, retirement or other goals.

How can you compare ABSLI Insurance Plans in 2026?

If you are reviewing your own protection as part of this exercise, begin by assessing your family's income-replacement needs, liabilities and long-term goals.

You can compare ABSLI Term Insurance Plans and use the [ABSLI Term Plan premium calculator for an indicative estimate. If the ABSLI DigiShield Plan suits your requirements, you can explore the product subject to eligibility, underwriting and applicable policy terms.