I am 35 years old and want to take a life cover. Which one should I go for—a whole life plan or a term plan?
Your life cover should include a combination of protection and savings. Before selecting a cover, you need to decide the duration for which you need protection. Do a “needs-analysis” by taking assistance of a qualified adviser. Based on your goals and aspirations, the adviser can then recommend a plan or a combination of plans best suited for your requirements.
Rajiv Jamkhedkar, CEO, Aegon Religare Life Insurance
Can an insurer refuse to offer a cover under any circumstance?
Yes, the company reserves the right to decline a life insurance proposal. Usually, this is done after assessing lifestyle, health and other criteria. This usually depends on a company’s internal policies.
I am 42 years old and want to take a life cover of around Rs10 lakh. How much premium would I have to pay? Also, does it make sense to take a health rider with the cover, or should I take a health cover separately?
The premium amount depends on factors such as your current health and the insurance plan you choose. You must consider taking a critical illness (CI) rider along with your life insurance policy. A CI rider provides certain benefits if diagnosed with critical illness conditions such as cancer, heart attack, kidney failure, or stroke. Buy a separate health policy to cover expenses related to hospitalization and medication.
Is there a life policy my wife and I can take, which will automatically cover our child as soon as he is born?
Currently, there is no such policy available in the market. First, you must insure your wife’s and your life either through separate plans or a joint life insurance plan. You can then buy a child plan for your newborn that would help you save for your child’s future needs. Some insurance companies offer child plans for kids who are just a day old.
I feel that my life cover is insufficient and I want to increase it. Should I bump up my present cover or get a new one?
Bumping up the sum assured in your existing plan can be cheaper, but it is recommended that you also check the premium rates for similar products from other life insurance companies so that you get the benefit of lower premium and similar, if not better, coverage.
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