Claiming benefit in a body part insurance?

So if a celebrity has insured his/her smile,under what circumstances do they have the right to claim back their money? i mean, how do you measure the extent of smile lost. i also read through about celebrities insuring really weird things like chest hair! , sperm etc! how does this work? could anyone give me more insight on how body parts insurance really works and how does it benefit the person insured. These insurances also seem to be really expensive in the first place.

Age 32, Self-employed, 2 lacs/annum, can my dad invest 3 lacs in postal MIP with no tax burden on me?

I am working in BPO as a free-lancer in India. Recently I heard about Indian Post Office MIP being a good option for monthly income. In fact, would like to know if any other such equally safe option is available to me too.

My question is if I can ask my father who is a retired govt service man to invest around 3 lacs in my name so as to the interestes accrued can be used by me. But of course, would not like it if it gives me any extra tax burden. As of now, I have around 2 lacs/annum of income against which I invest in LIC/PPF to the extent of 60000.

Can a life insurance company increase rate of premium arbitrarily during policy period?

Suppose I take term insurance (for life cover) for 25 years from some company since I find they charge lowest premium. Can it happen that the company hikes the premium rate arbitrarily after 5 years, to such an extent that I find the rate is more than the premium rate of some other company I ignored earlier. Is it better to stick to public sector insurance companies or are they as good as private sector companies?