If you bought your life insurance policy online in the last few years, you may have received only a digital copy — no physical bond delivered by post. If you bought it through an agent a decade ago, you probably have a physical document somewhere. Both are valid. But both have different risks that are worth understanding.

A physical policy bond is the traditional document — printed, stamped, and mailed. It's legally valid and the most straightforward to present at the time of claim. The risk: it can be lost, damaged in a flood, or simply not found by your family when needed. A duplicate can be obtained from the insurer but requires a formal application process.

"The most important thing about any insurance document isn't whether it's physical or digital — it's whether your family knows where it is and can access it when they need it."

A digital policy, stored in your email or on the insurer's app, has the advantage of being recoverable as long as the email account or login credentials are accessible. The risk: if your family doesn't know your email password or the insurer's portal credentials, accessing the document after your death can be complicated.

DigiLocker is the government's recommended solution. IRDAI now requires insurers to link policies to DigiLocker, making them accessible to nominees using Aadhaar authentication — without needing the policyholder's login credentials. If you haven't linked your policies to DigiLocker yet, it's a five-minute task that could save your family significant effort.

Whether physical or digital: store the document accessibly, tell your nominee where it is, and ensure the nominee has the basic information needed to initiate a claim.