The insurance business in India isn’t just growing, but also becoming more sophisticated in terms of product offerings. To help readers keep ahead of developments in this business, Mint features a Q&A on insurance every Monday.
I am 32, a government employee with an annual income of Rs5 lakh. I have a 10-year-old son, who is suffering from partial disability. I want to invest in an insurance plan which will not only take care of his education in future but will also provide for his needs if I am not around. Is there a special plan for children with disability?
Your child’s partial disability may not be a constraint while buying a regular child plan, unless the policy covers the life of the child as well. You can choose any childinsurance policy, depending on your requirement and returns offered.
Every child plan covers the life of the parent as well; therefore, the child can be self-sufficient in the unfortunate case of the parent’s death. For better returns, it is advisable to start early.
I want to invest in an insurance plan. While going over the key features, I came across the term “paid-up policy”. What does it mean? If a policy is declared paid-up,?does?it?impact?the?sum?assured?
If the premium on a life insurance policy for a minimum specified period is paid in full, the policy may continue even if no subsequent premiums are paid. Such policies are paid-up policies.
There is an impact on the sum assured if the policy is declared paid-up.
For instance, if six out of the originally stipulated 30 premiums are paid, the paid-up sum assured under a paid-up policy could still be 20% ofthe original sum assured of the policy (premiums paiddivided by total premiums payable).
Readers are welcome to write in with their queries to firstname.lastname@example.org. The questions will be answered by senior executives from leading insurance firms.This week’s expert is T.R. Ramachandran, managingdirector and CEO, Aviva India.