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State Facts At The Time Of Purchasing A Policy

Monday, July 28, 2014
By Manoj Aswani

Manoj Aswani is VP at MyInsuranceClub.com

We have health insurance covered from office but in private companies we are not sure till when we will carry with same company. Is there any way to transfer the benefit to other company policy or convert the existing corporate policy do individual policy? Otherwise maintaining a separate policy is like additional expense
—Ramesh Singh, Chembur
Group Insurance Coverage is like umbrella coverage. It is a contract between the Group of Employees like an organization or an association which has a group of people under it and the Insurer. Thus, once there is a contract between the insurer and the group, it is for all members currently working in the same organization. However, once you leave the cover ceases to exist and there is no way you can continue the coverage.

Thus, what we suggest to most people is to opt for an Individual Policy where the contract is between the Policyholder and the Insurer. This policy you can continue irrespective of wherever you work.

The premium would depend primarily on the health conditions and the product you select and the Sum Assured you choose. However, you can select:Apollo Munich Optima Restore or Max Bupa Heartbeat Plan

I am 30 year old. I want to do a term plan with permanent disability rider. Will you please suggest me which one is best? My annual income is 6 lakhs.
—Dinesh Purva, Kandivali

Since you are looking for a Term Plan for Protection purpose and taking additional riders is just a process of enhancement of the coverage. Taking a Term Plan is the first step towards protecting your family against unforeseen events and securing their future.

The Riders you can opt for in a Term Plan:
1. Accidental Death Benefit rider: It protects against accidental uncertainties by providing additional coverage.

2. Critical Illness Rider: The entire sum assured is paid on diagnosis of any of the critical illness irrespective of the amount spent in treatment

3. Waiver of Premium rider: The premium would be paid by the insurer if you have opted for the Disability Premium waiver rider

You can opt for Aegon Religare iTerm Plan is an online Term Plan with would have Accidental Death Benefit rider and Waiver of Premium for Critical Illness (CI) Rider attached to it. However, you need to choose a plan as per your requirement.

I have a query regarding Term Plans. What if the policy holder has never consumed or smoked in the last five years but will develop a habit in the future? Then, will it still be covered or additional premium needs to be paid?
—Kamlesh Chauhan, Dadar
You are required to state the truth at the "time" of purchasing the plan. You never know what will happen to you afterwards and have not planned for the same. Thus, once the plan is issued, the risk is transferred to the Insurance Company and it is their responsibility if anything were to happen to you.

Thus, you need not worry about what happens after the policy is issued as long as you do not "Plan" for something. As long as you state the truth at the time of issuing the policy and then happen to get transferred even to Iraq or Africa or even Antarctica is not your concern since the risk is transferred to the insurance company. Similarly it does not matter if the life insured starts smoking or drinking after the policy is issued as long as you do not "Plan" for the same.

Thus, once the policy is issued, all risks are transferred to the insurance company and no additional premium needs to be paid for any unforeseen changes in health or lifestyle.

(The author is Vice President at www.MyInsuranceClub.com, insurance comparison website in India. You may write to him at [email protected])

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