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.
My father, 50, holds a long-term life insurance policy. He met with an accident that disabled him permanently. He was unable to pay further premiums on the policy. What can we do to avail relief?
It is indeed unfortunate that your father met with an accident. You need to check if the insurance policy he bought has a “waiver of premium rider” attached to it. Waiver of premium benefit rider is a common add-on offered by most life insurance companies.
In case of total and permanent disability of the life assured due to an accident by outward, violent or visible means, this rider allows premium on base policy and attached riders, if any, to be waived.
Total and permanent disability means that at the time the disability occurs or any time thereafter, the life assured is rendered incapable of earning wages, compensation or profits. However, it is important to read company brochures and policy documents carefully to understand the terms and conditions and the eligibility criteria.
I am 50, and I work in a private sector company. Is it too late for me to invest in pension funds? What is the right age to invest?
It is advisable to start saving for retirement as early as possible as the basic objective of a pension plan is to help you plan your finances.
To answer your question, most insurance companies may offer pension plans with a maximum entry age of 55 or 60, so you can be eligible to buy a pension plan.
You can start saving in a pension fund even now, though the amount you have to keep aside for a significant corpus may be high, as you may be working only for another 10-15 years.
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 Rajesh Relan, managing director, MetLife.