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TERM OR HEALTH INSURANCE |
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| Ques. |
I am a 22-year old single and I would like to know whether I should go for a normal health insurance or a term plan. Some of the companies claim paying Rs. 50,000 pa will get me a return of 65 lakh after 30 years and with a cover of 12.5 lakh in this period? |
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| Ans. |
It seems you have mixed up 3 different policies :
1. Health Insurance
2. Term Insurance
3. Endowment Life Insurance
Under Health Insurance -your hospitalization needs will be fulfilled Under Term Insurance -your nominee will get sum as per sum assured.You will get nothing ifyou will survive till the maturity date of Term Insurance Policy Under Endowment Life Insurance you will get sum assured with bonus declared by the insurance companyduring 30 years .The exact calculation can be done after allocating funds out of Rs50000 for policy no 1& 2. Broadly speaking if the sum assured is Rs 12.5 lakhs you will not get Rs 65 lakhs. |
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| Ques. |
Can Life insurance policy be transferred to another person? |
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| Ans. |
Life Insurance policy cannot be transferred to another person; however it is important that you nominate one of your financial dependants to receive the death benefits of life insurance policy.
You can use your insurance policy as collateral with a bank in which case you will have to assign your policy to the bank. This is called assignment and ownership of policy will be transferred to the Bank. After the loan is repaid the bank will assign it back to you.
In some countries you can sell your insurance policy in Exchange ((like stock exchange) before maturity and get better value than the surrender values. These are called TEP or Traded Endowment policy to be given to you by the life insurance company
In India there is a controversy whether you can assign your policy or sell your policy to someone who is not your dependent. We in Insurance Foundation of India feel that customers or policy holders should have the flexibility to decide whether he should assign the policy to some one or to surrender the policy back to life insurance company (which issued the policy). |
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| Ques. |
My mother is 73 years old. I would like to take term plan for her but do not know which insurance company to approach. Is there any company which can offer term plan to her? Also can she buy health insurance? That customer or policy holders should have the to decide whether he should the policy to someone or to life insurance company, which issued the policy? |
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| Ans. |
Yes you can buy Term insurance policy, for her form IDBI Federal Life Insurance which offers term plan upto entry age of 85 years. In the unforeseen event of demise in the first two years of the policy, 125% of total premiums paid shall be returned. After two years, she will be insured for the amount of sum insured for life. The amount of premium and cover remain the same throughout the life of the policy, except after age 90. At age 90 the premiums will stop, but life insurance cover will continue.
She can also buy health insurance. from Max BUPA the only company that provides health insurance to person of any age up to Rs. 50 lakhs insurance cover. Premium payable for coverage of Rs. 10 lakhs will be Rs. 81,747. |
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I pay Rs.2 lakh a year as insurance premium. My fund value is still negative and if I surrender now, the initial amount of Rs.2 lakh would be forfeited. Is there any way I can get the surrender value inclusive of the initial premium? |
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No, there is no possibility to get surrender value inclusive of the initial premium.
You should pay premium for minimum number of years or be prepared to accept loss. |
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| Ques. |
Will the agent be helpful in settling of claims in future? |
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Yes your agent will be helpful but he is getting 100% of his income from the insurance company and he may be getting .001 % of his income from you. If he has to make a choice he will favour Insurance Company. You are the best person to decide whether directly from the company or through an agent. Theoretically he is supposed to help you in claim settlement but time will tell when the claim is to be lodged. Be positive and buy it through agent but better buy through an Insurance Brokerage Firm as it offers wider choice. |
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What are the minimum and maximum policy durations? |
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Minimum is 1 year. Some companies offer 2 years duration also. |
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Can I buy more that one Health Insurance policy? |
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Yes, you can buy more than one insurance policy but the claim should not be duplicated to two insurance companies. Under normal circumstances the claim amount will be shared by both insurance companies in the ratio of the sum insured. Let us say Company 'A' insured you for Rs. 2 lakhs and Company 'B' insured you for Rs. 3 lakhs, then the claim will be shared in the ratio of 2:3. In case you have gone in for a normal policy of Rs. 2 lakhs from Company A and Top-Up policy of Rs 3 lakhs from United, then in that case first Rs. 2 lakhs will paid by Company A and the claim above Rs. 2 lakhs will be paid by United. Top up Policy costs less than normal policy of Insurance Company. For right advice it is always better to consult an Insurance Brokerage Firm. |
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| Ques. |
Can I buy health insurance policy even if I am not an Indian National but am living in India? |
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Yes, if you are a student studying in India or you are working on a valid Visa then you can get the policy. But if you are a tourist coming to India for a short duration say 3 weeks then it will not be worthwhile to buy health insurance as 30 days cooling off period will take away the benefits, you are looking for.
Those who are coming for Medical Tourism can not buy the policy and avail the benefit i.e. claim. |
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Who will receive the claim amount under health insurance if the policyholder dies during treatment? |
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Nominee will receive the amount if the policyholder dies during treatment. |
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Can I seek treatment at home and be reimbursed for it under health insurance? |
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It can be possible in exceptional cases only when there is an epidemic and no beds are available in hospitals. This is called domiciliary treatment in insurance language/terminology. |
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| Ques. |
I might be laid off soon. Should I see my doctor before I lose my insurance? |
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No purpose will be served by seeing your doctor. You should consult an insurance brokerage firm and buy a health insurance policy which should be in place 30 days before your last day in your company. This protects your interests as on the day you leave the present employer –on the same day cooling off period of your new policy will be over. |
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