LIFE INSURACNCE
I am an engineer at a manufacturing company. One of my colleagues recently opted for an income protection cover. How useful is it?
An income protection cover is a must-have plan for each and every person who generates income for his or her family. This cover is designed to provide you with a regular monthly payment in the event of death, disability or illness leading to loss of income for a specified period of time. Income protection plans also allow the nominees the flexibility of receiving pay-outs at intervals of their choice. Such an option helps ensure that the lump sum does not get misused. It is a protection plan that offers complete peace of mind as you can work hassle-free without worrying about your family’s future financial needs.
My brother, a non-resident Indian (NRI), is 40-year-old. He intends to purchase a term policy in India. Is it possible?
Insurance companies go by a list of standard countries when it comes to offering policies to NRIs. If your brother resides in one of the approved countries, he can opt for a term plan in India. Most of the Indian insurance companies offer exactly the same term policies to NRIs as to resident Indians. There is no difference at all. Hence, you should first check with the insurance provider your eligibility in terms of country, after which your brother can fill up an additional questionnaire for NRIs along with the policy proposal form and purchase the desired cover.
My daughter is one-year-old. What is the right age for her to have a life insurance cover? Can she take benefits from my life insurance policy?
We all work towards building a corpus to finance our child’s future needs, like education, marriage, etc. Life insurance plans can help one achieve such goals. Child plans are life insurance solutions that are specifically designed for this need. They serve the dual purpose of insurance cum savings. While the child receives a corpus after the policy term is over, what makes such plans special is that in case of any eventuality of the premium paying parent, death benefits are paid to the nominee and the rest of the premium is waived off. There is no lapse in the policy and the child gets the maturity amount at the end of the policy term. In case you want to leave a financial legacy for your child and grandchild, certain life insurance policies can help you achieve this goal. Therefore, as soon as your child comes into the world, it is prudent for you to start financial planning and purchase an insurance plan. In case your existing life insurance policy has adequate cover and has been planned according to your child’s future needs, you can make your child a nominee so that she can avail benefits from your plan.
I quit smoking last year and want to purchase a term policy. What are the chances that my life insurance policy gets rejected? Will it also have an impact on the claims payout?
To purchase a term policy, you will first have to undertake medical tests as required by the insurance company. Such tests are mostly mandatory for a person opting for a term insurance cover. The policy proposal form along with the medical report will be then evaluated by the medical underwriting team, which can approve, reject or rate up the policy, based on their assessment. Hence, whether your policy proposal will be accepted or rejected will depend on their assessment. You should apply for a policy after reading the terms and conditions of the insurance cover. Once you have been offered the policy, your earlier smoking habits will not affect the payout of your claims.