I’m 45 and have a daughter. Our base medical health insurance has been operating for a ₹10 lakh household floater for the final 5 years. This yr, I’ve an excellent top-up sum assured of ₹1 crore with a ₹10 lakh deductible. My base insurer has supplied to extend my sum assured to ₹20 lakh for an incremental premium of ₹3,000. I’m contemplating whether or not to boost the protection. I’ve a no-claim bonus of ₹10 lakh in my base plan. We should not have any adversarial medical historical past. Please advise.
– Identify withheld on request
You’ve gotten a well-structured medical health insurance protection. As soon as your base sum assured will get exhausted, your top-up plan would set off instantly. Because the deductible of the top-up plan matches that of the sum assured of the bottom plan, you wouldn’t have any outage.
Moreover, you have got a cushion protection from the no-claim bonus. Provided that it might take a few years for the ready interval to lapse within the top-up plan, the no-claim bonus might step-in.
There may be restricted incremental advantage of getting the additional protection within the base plan, given your present construction. For the incremental sum assured bought within the base plan, the ready interval can be reapplied.
Over the previous few years, the tremendous top-up plan has been priced very attractively. For example, an excellent top-up of ₹1 crore with a ₹10 lakh deductible for your loved ones composition would value round ₹1,000. Comparatively, it appears you’re being charged ₹3,000 for the extra ₹10 lakh cowl within the base plan.
The first benefit of shopping for cowl within the base plan is that you’d be capable of make a single declare of ₹20 lakh with one insurer. Within the various construction, you would need to file a declare of ₹10 lakh with the bottom plan, after which the remaining quantity with the top-up up insurer.
I had utilized for a time period life insurance coverage cowl of ₹2 crore with a outstanding life insurer. Nevertheless, it bought rejected as a result of I’ve some nervousness points. I checked with a number of different insurers, however the proposal will get rejected. Why is that this taking place? I now have an choice to get a life cowl by means of a gaggle retail plan. Ought to I contemplate this feature? Why is GST relevant for such a plan?
– Identify withheld on request
Life insurance coverage contracts are long-term contracts. Premium as soon as assigned for a selected contract stays fastened for all the length of the time period. Insurers have pre-fixed underwriting norms based mostly on their evaluation of danger.
These will not be static rules however change over time. For continual well being points, resembling nervousness, insurers could refuse to underwrite the proposal based mostly on these fashions. You might select to reapply when your well being situation improves.
Within the meantime, it might make sense to use with the group retail choice. In a gaggle plan, insurers have extra underwriting leeway as a result of quantity. Additionally, group plans are typically for shorter interval. Thus, permitting insurers to revisit pricing after smaller intervals.
As per the current GST rules, solely particular person well being and life merchandise are exempt from GST. Group life insurance coverage nonetheless fall inside the ambit of GST.
As your well being situation improves, chances are you’ll discontinue the group plan and swap to a person plan. This might guarantee that you’ll be able to optimize premium, when attainable, and have the required protection within the meantime.
(Abhishek Bondia is a principal officer and managing director at SecureNow Insurance coverage Dealer Pvt. Ltd.)
