For these reasons, many courts have adopted one or more theories that have allowed the language of the insurance policy to be interpreted strictly against the insurer. However, since the life insurance contract relies heavily on the statements of the insured and/or the deaigner, honesty – not trust in the leniency of the courts – should be the motto of the contractual procedure. Specific exclusions may apply, such as suicide clauses, in which the policy becomes null and void in the event of the insured`s death by suicide within a specified period of time (usually two years after the date of purchase; some states are a one-year suicide clause). Any misinterpretation of the insured on the complaint may also constitute grounds for nullity. Most U.S. states set a maximum time limit for challenge, often no more than two years. It is only if the insured dies within this period that the insurer has the legal right to challenge the claim on the basis of a misrepresentation and to request additional information before deciding whether to pay or deny the claim. Under Section 80C of the Income Tax Act, in 1961 (the Indian Penal Code), premiums paid for valid life insurance may be exempt from taxable income. In addition to the life insurance premium, Section 80C authorizes exemption for other financial instruments such as Employee Provident Fund (EPF), Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), National Savings Certificate (NSC), health insurance premiums are certain of them. The total amount that can be exempted from taxable income for Section 80C is limited to a maximum of 150,000 INR.
 Exceptions are eligible for individuals (Indian citizens) or Hindu Undivided Family (HUF). Life insurance or STOLI is a life insurance managed or funded by a person who has no relationship with the insured person. In general, the purpose of life insurance is to ensure security by ensuring that financial losses or difficulties are mitigated in the event of the insured`s death. Stoli has often been used as an investment technique in which investors encourage someone (usually an elderly person) to buy life insurance and designate investors as beneficiaries of the policy.