Readers’ Corner

Next month I will turn 50. I do not have a term plan. Does it make sense for me to opt for one at this age? How should I decide on the duration of the policy? Term plan is a must for any individual who is earning. Assuming that you will work for another 10 years, a term plan would work as the best option for you to replace lost income in case of uncertainty. A term policy is one of the most cost-effective methods to mitigate risk, safeguarding your major financial commitments. Ideally, one should have a term life cover until an individual intends to work. It also depends upon your financial needs and goals. You can opt for a term plan until 80 years of age. I had purchased a life insurance policy 10 years ago. I was single and had named my brother as the nominee. Today, I am married and have a fouryear-old child. Can I change the nominee from my brother to my son? What’s the procedure? Yes, a policyholder is allowed to change the nominee of his/her policy any number of times during the policy term. For this, you will have to give a written request to your insurer with the details of the new nominee in a prescribed format, asking them to change the name of the nominee from your brother to your son. My father had purchased a 20year term plan when he was 40. He will be 60 in another five years. Is it possible to extend his cover to 80 years? Life Insurance is a contract, and its features, terms and conditions become sacrosanct right at the time of purchase. Your father will not be able to extend his cover in the existing policy. He can, however, opt for another term plan that suits his needs. My company is transferring me to Singapore for the next two years. Will my life insurance policies be in force if something happens to me in a foreign country? Yes, a life insurance policy is valid irrespective of where you are in the world. If you happen to be outside India and your plan is in-force, your nominee will still get the sum assured in case of any unfortunate event. The coverage of a policy and its features, however, vary from product to product. Usually, every life insurance policy has standard/non-standard and declined list of countries. It would be prudent to contact your insurance company for more details before flying out to Singapore. My sister is getting married. Can I purchase a guaranteed savings policy for her? Can I continue to pay the premiums on her behalf? You can purchase a life insurance policy for someone else only if you have consent and insurable interest. Insurable interest means that you would be adversely affected financially in case something unfortunate happens to the person. In this case, since your sister’s life will not impact your financial condition, you do not have any insurable interest in her. Unfortunately, you will not be able to purchase a life insurance plan on her behalf. I have two money back policies and one term plan. Will my family get the claims from these multiple policies at the same time in case of an unfortunate event? Yes, your nominee or family members will get claim proceeds from all your policies in case of an unfortunate event. These are all individual policies. If they are active at the time of an unfortunate event, they will all act independently, and the claims will be paid.