Section 16(a) in Insurance Regulatory and Development Authority of India (Non-Linked Insurance Products) Regulations, 2019
(a)If the policyholder dies during the deferment period, the nominee shall exercise one of the following options:(i)To utilize the entire proceeds of the policy or part thereof for purchasing an immediate annuity or deferred annuity from the same insurer at the then prevailing rate. However, the nominee shall be given an option to purchase an immediate annuity or deferred annuity from another insurer at the then prevailing rate to the extent of percentage, as stipulated by the Authority, currently 50%, of the entire proceeds of the policy net of commutation.(ii)Withdraw the entire proceeds of the policy;
