Should I use a credit card for insurance premium payment?
I recently came to know about the option to pay insurance premiums with a credit card. Are there any additional charges associated with using a credit card for such payments?
—Name withheld on request
The process to pay insurance premiums through credit card is very similar to the other digital payment processes. The customer can make payment for their underlying premium using credit cards physically at the insurance companies’ branches or that of their distributors. The other option is to make payments through digital devices using online mode payments and adding the credit cards while making the final payments. Life insurance companies have been leading the pack by continuously increasing the modes of payment for insurance premiums thereby making it agile and easier for the customers to make timely payments. In addition, most insurance companies do not levy any additional charge for opting to pay through this mode.
I have recently started working and bought a health insurance policy. However, I’m uncertain about the coverage for diseases like cancer or heart attack, especially considering my family’s history with these conditions. Are there dedicated critical illness insurance plans available, and is it necessary to maintain separate coverage spe
cifically for critical illnesses in addition to a regular health insurance policy?
—Name withheld on request
A regular health insurance policy typically covers all kinds of hospitalizations including those from serious illnesses such as cancer or heart attack. However, it is important to note that there could be deductibles involved in such plans which means all the hospitalization costs may not be covered. Further, the treatment for diseases such as cancer often extends over reasonably long periods of time and a typical health policy may not have sufficient sum insured to cover the full costs of treatment. In addition, such conditions often lead to absence from work for extended periods of time which means support would also be needed for replacement of the lost income. Hence it is extremely useful to have fixed benefit health insurance policies in addition to regular health policies or mediclaim.
Such policies typically provide a lump sum on the occurrence of any of the covered critical illnesses thereby providing an extra protection needed in case of such diseases. Such lump sum can be used for a variety of purposes such as paying for the treatment of the condition, replacement of lost income, repayment of a loan or any other need which the policyholder deems necessary to fulfill using the funds made available. In addition, there is no requirement to raise bills or obtain extensive paperwork about prescriptions or tests signifying the costs incurred other providing the doctor’s diagnosis proving that the condition has occurred. Hence, claiming under fixed benefit health insurance policies is much easier.
Akshay Dhand is appointed actuary, Canara HSBC Life Insurance.
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