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 a 68-year-old retired government employee and the pension plan I have from my insurance company is maturing next month. As I am already getting a government pension, would it be possible to get the returns in bulk so that I can invest the amount somewhere else?
Yes, it is possible to withdraw a portion of the accumulated corpus of the pension plan when you retire.
The exact amount depends on the terms and conditions of the insurance company from which you have bought your pension plan. This amount would be totally tax-free and you are free to invest it anywhere you like. The balance amount cannot be withdrawn and is paid in the form of monthly pension till the person’s death.
I am a 24-year-old self-employed man and want to buy a life insurance plan. Can you please tell me the basic conditions for buying a life insurance plan?
To buy a life insurance plan, two basic conditions must be fulfilled. First, the person who proposes to insure must be a major and should be eligible to enter into a valid contract.
Second, the proposer must have an insurable interest in the life which he proposes to insure.
Life insurers may also look into other parameters while deciding whether a person can buy a life insurance plan — such as the health of the proposed life, family health history and premium paying capacity.
In the case of a minor, a parent can propose a plan contract on his or her life.
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.