Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Can You Transfer Life Insurance Policies to Another Company in India?

Term life insurance policy allows the insurer to switch their life insurance policy to another insurance company without ending their existing policy. Read to know how to transfer life insurance policies to another company in India.

  • Jul 22, 2022

When you are planning to opt for an insurance policy like the Unit Linked Insurance Plan (ULIP) in India, many questions and doubts may occur in your mind. First, you must be satisfied with the insurance policy or savings plan you will opt for and invest your hard-earned money into. This gives you a sense of security, and you can have peace of mind if you are satisfied and aware of the functionality, policy terms, and guidelines. However, one big question remains unanswered, and most potential policyholders keep seeking answers to it. The doubt that you can transfer life insurance policies to another company in India has troubled many investors over time, and still, most don’t find a concrete answer to it.

So, in this article, we will emphasise the answer to the question “can you transfer life insurance policies to another company in India?” and discuss the types of insurance that can be transferred to another company.

Transferring Life Insurance Policies To Another Company In India

It is possible to transfer your life insurance policies to another company in India. However, some specific rules and regulations must be abided by to make such transfer possible. To transfer a life insurance policy to another company in India, a policyholder has to go through the process where the cash value of the current policy contract is transferred to another to make the transaction legal and qualified under the rules of law.

One can accomplish this by following the guidelines of Code 1035 of the Internal Revenue Code. This Code allows a tax-free transfer of monetary assets under the impression that the exchange of the financial asset is made under the rules and regulations of Code 1035.

However, as a caution, the policyholder should ensure that the exchange strictly abides by the rules and regulations of Code 1035; otherwise, complications related to taxable gains and other issues may occur.

Types of Insurance That Can Be Transferred to Another Company

There is only one way of transferring life insurance policies to another company in India without increasing taxation on the current amount. And this can only happen by following the procedure of the Code above 1035 of the Internal Revenue Code. Any other method will end up making your transfer count as a taxable gain, which might cause a heavy loss to your monetary asset.

Transfer Like A Property Exchange

The best way is to follow Code 1035, which allows you to transfer your insurance policy to another company like a property exchange. In this process, the insurance policy exchange takes place without the recognition of any profit/gain and thus makes you transfer a non-taxable event and the new policy replaces the old one.

Which Life Insurance Policy Qualifies for the Code 1035?

Let’s look at the life insurance policies that are eligible for a transfer to another company under Code 1035 of the Internal Revenue Code.

- A life insurance policy in exchange for a life insurance policy

- A life insurance policy in exchange for an endowment policy

- A life insurance policy in exchange for an annuity policy

- A life insurance policy in exchange for long-term care qualified policy

Reason Why a Policyholder May Transfer their Policy to a New Insurance Provider

The decision to transfer an insurance policy may be taken up for any reason. However, here are some of the main reasons why policyholders make a transfer to a new service provider.

Better Returns:

Suppose a policyholder finds that the new company is providing a better interest rate than his current insurance provider. In that case, they will most likely opt for the higher return. So one of the leading causes for such transfers is market competition.

Policy/Investment Features

If a policyholder finds that other insurance service providers are offering better investment opportunities and have more features like more riders, more significant numbers of free fund switching in case of ULIPs, or other benefits, they may prefer switching to a new insurance provider.

Customer Service

Customer satisfaction remains one of the main reasons insurance providers lose their customers. Suppose a policyholder is not happy with the customer support and management. In that case, they are most likely to switch to a new company with a better market reputation.


Now that you have the answer to the question, can you transfer life insurance policies to another company in India, you must understand that making such a transfer needs the highest level of sincerity. There is no room for mistakes as they can lead to heavy monetary losses for you. You must ensure that the procedures of the transfer or exchange strictly abide by the rules of regulation. Therefore, making such a transfer in consultation with an expert is highly advisable. Also, you must know when not to transfer your insurance policy and all the issues that occur due to the transfer of your insurance policy to a new company.

Kotak e-Term

Download Brochure


  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Details Required To Be Filled In A Life Insurance Form

Why Do Life Insurance Agents Avoid Selling Term Plans?

Life Insurance Plans for Women

5 Advantages of Life Insurance Going Digital

7 Superficial Reasons People Avoid Buying Insurance Online

5 Reasons Why You Need Life Insurance in College

Can NRI Buy Life Insurance in India?

What Is Social Impact Investing and How Does It Benefit Society?

How To Choose The Right Life Insurance

How to Calculate Human Life Value(HLV)?

How Do Term Insurance Plans Differ for Smokers?

Types of Insurance You Must Invest in for Secure Future

Why One Must Buy Term Insurance before 25 Years

How Often You Must Review Your Life Insurance Policy?

What is a Single Premium Term Plan and its Tax Benefit?

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

Choosing a Life Insurance Beneficiary

Top 5 Common Life Insurance Myths and Facts

How Many Insurances Should I Have?

How do life insurance payouts work?

भारत में सर्वश्रेष्ठ टर्म प्लान कैसे चुनें?

Nominee in insurance - A Complete Guide on nomination in insurance

Who Is A Nominee In A Life Insurance Plan?

6 Different Types of Insurance Policies

Do Your Financial Planning with Life Insurance!

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

जीवन बीमा पर ऋण

All About Backdating in Life Insurance

Different Types Of Life Insurance In India

Is It Advisable To Have Multiple Life Insurance Policies?

Should You Buy Life Insurance After Getting Married?

What Is Insurance Rider and It’s Benefits?

Why Buying a Term Insurance is Important for all Parents

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

What Should One Expect During the Medical Evaluation for Life Insurance?

Why Renewal of Term Insurance Plan is Important

8 Things to Consider Before You Buy Life Insurance

Loan Against Life Insurance Policy

Why do most Indians choose the wrong way to buy life insurance?

Does Family History Affects your Term Life Insurance Rates?

5 Things to Keep in Mind While Buying Life Insurance Policy

Staying Insured While Investing

Most Common Life Insurance Riders to Enhance Your Existing Policy

A Term Insurance Guide for Disabled People

First Job? Here’s Some Tips on How to Manage Finances

All about IRDAI

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?

How to Buy a Term Life Insurance Online

Best Insurance Plans in India

5 Common Life Insurance FAQs and Answers

Term Insurance Tips for NRIs in India

Term Life Insurance vs Accidental Death Insurance

What Is a Whole Life Insurance Plan?

FAQs on Life Insurance

Biggest Life Insurance Myths

Health Insurance VS Life Insurance

Are Deaths Due To Coronavirus Covered by Kotak E-Term Plan?

Life Insurance for Overweight Applicants

Terms and Conditions of Term Insurance Plans

Life Insurance with Money Back vs Without Money Back

Does Life Insurance Policy Cover Covid Death?

Savings cum Protection Plans Secures Your Family from Unforeseen Events

What Is Staggered Payment Option Under Term Insurance Policy?

Life Insurance Vs. Mutual Funds Investment

9 Most Important Things You Must Learn About Paying Life Insurance Premium

All About Life Insurance and How It Works?

Why Online Term Insurance Plans Cheap?

“Life” Insurance or “Death” Insurance?

Different Types of Insurance Policies in India

Various Term Insurance Premium Payment Options Available in India

Term Plan with Return of Premium (TROP)

वरिष्ठ नागरिकों के लिए ऑनलाइन टर्म इंश्योरेंस प्लान खरीदने के लिए गाइड

Life Insurance vs Mutual Funds

Types of Life Insurance Or One Investment, Many Options

Think About Life Insurance Sooner than Later

Is Life Insurance an Investment?

Does Life Insurance Cover Terminal Illness?

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

Choosing Between Short-Term & Long-Term Insurance Plans

Insurance Changes You Need to Make Post Marriage

Is it Worth Buying Disability Rider on Term Insurance?

Beware of Phishing & Fraud Insurance Calls

What is Sum Assured in Endowment Policy?

Role of Life Insurance in Your Financial Portfolio

6 Things You May Not Know about Life Insurance

Kotak Life Claim Settlement Ratio

What is Insurance Coverage? Overview, Types, and Examples

Role of IRDAI in the Insurance Sector

Reasons Why Term Insurance Claims Get Rejected

Can a Term Plan be the Substitute for a Retirement Plan?

Important Features of a Term Insurance Plan

Life Insurance Nominees: 5 Must-Know Facts for Beneficiaries

Do Life Insurance Premiums Increase Every Year?

Life Insurance and Retirement Planning

Difference Between Money Back and Endowment Policy

Why Life Insurance Is Always a Smart Decision

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

What are the Benefits of Endowment Policy?

5 Easy Steps to Buying A Policy

How to Use Different Types of Life Insurance for Retirement Planning?

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

What happens to joint life insurance after divorce?

What Happens If I Stop Paying My Life Insurance Premium?

In India, should NRIs purchase life insurance?

When Should You Review Term Life Insurance of Yours?

Difference Between Insurance and Assurance?

What is the Current Trend in Term Insurance?

Why Your Family Should Know About Your Life Insurance Policy?

What is Life Insurance?

Compare Different Life Insurance Products Offered By Kotak Life

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

Guide for Buying Online Term Insurance Plans for Senior Citizens

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

Life Insurance for Millennials

जीवन बीमा क्या है?

What Is the Procedure to choose a nomination in life insurance policy?

When are Millennials required to take out a life insurance policy?

क्या जीवन बीमा एक निवेश है?

Choose the Nominee of a Term Life Insurance Plan Wisely

What is Underinsurance & The Dangers of Being Underinsured

How to Buy a Life Insurance Plan?

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

Guidelines for Linking Aadhar and PAN to Insurance Policies

Take 100% Responsibility of Your Family with Term Life Insurance

Types of Life Insurance Policies in India

How to Customize Your Life Insurance Policy with Riders

Important Life Insurance Terms You Must Know

All You Need to Know About KYC

5 Reasons Why a Women Should Buy a Life Insurance

How to Revive the Lapsed Life Insurance Policy?

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

Key Things to Review in Your Life Insurance Policy Document

Benefits of Buying Term Insurance Plan for Senior Citizens in India

What is Human Life value and a Human Life Value Calculator?

बीमा क्षेत्र में IRDAI की भूमिका

How Much Life Insurance Cover Do I Need?

क्रिटिकल इलनेस राइडर के साथ टर्म इंश्योरेंस के लाभ

What is Minimum Life Insurance Policy?

All about Your Rights and Duties While Buying Life Insurance Policy

Life Insurance and Millennials

NRI Premium Payment Options

Why do I Need Life Insurance?

Can An Individual Buy Multiple Term Insurance Plans?

Health Insurance VS Life Insurance

What are robo-advisors in insurance?

Term Insurance Claim Process

Always keep your Nominee informed

What is the Difference Between Insurance and Reinsurance?

Life Insurance Beneficiary

How to Choose Life Insurance for All Ages?

Is Life Insurance For Millennials Really Needed?

What Is Investment Insurance?

Adding A Child to Your Life Insurance Policy?

How to Make Death Claims on Life Insurance?

5 Smart Steps to keep in mind while buying term policies

How Does Life Insurance Work?

Life Insurance Policy Closure

How to Choose a Life Insurance Policy

Life Insurance for Overweight Applicants

All about Life Insurance Calculators

What is the Difference Between Limited and Regular Pay Insurance Plan?

Customer Awareness on Information Security

भारत में जीवन बीमा पॉलिसियों के प्रकार

Is It Time to Review Life Insurance Policy of Yours?

Why Term Insurance for Women is Important?

Sabse Pehle Life Insurance

Digital Life Certificate for Pensioners Seeking Pension

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

How to Find the Best Term Insurance Plan in Seven Steps

Benefits of Term Insurance with Critical Illness Rider

Term Insurance Vs Life insurance: Small Details, Big Differences

What is Group Insurance?

Important Terminologies of Life Insurance

Why Should You Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

Why You Should Never Cancel Life Insurance Policy

How Much Life Insurance Do You Need?

5 Benefits of Gifting Life Insurance Cover to Your Spouse

Is Voluntary Life Insurance the Same as Basic Life Insurance?

How to Choose the Right Life Insurance Policy for Your Age?

Does Life Insurance Pay for Suicidal Death?

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

Why is Medical Test Important While Buying a Term Insurance?

Process of Filing A Claim For Life Insurance

5 Ways to ensure faster settlement of claims

Insurance Vs Investment - A Guide to Your Financial Goals

Voluntary Life Insurance Policy Vs Group Life Insurance

How Much Life Insurance Costs and How Much Insurance Cover You Need?