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Ask Mint | In a family, insure earning member first

Ask Mint | In a family, insure earning member first
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First Published: Sun, Jul 12 2009. 09 40 PM IST

Updated: Sun, Jul 12 2009. 09 40 PM IST
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 30-year-old stay-at-home mom. Firstly, do life insurance companies sell life insurance to housewives and also, do I really need life insurance?
Yes, there are life insurance plans for stay-at-home mothers. Most insurance companies sell life insurance to housewives, but restrict it to a maximum sum assured, which could differ across companies.
Everyone wants the comfort of knowing that their loved ones are protected. The most direct impact on your loved ones is financial and hence the first person in any family who needs to be covered is the earning member. However, a housewife who manages the household also has immense value to the family, though financial computation of such value is not easy. Hence you do need insurance to ensure the continued well being of your family. Also, please do ensure that the earning member is adequately protected before taking out insurance on your life.
I had stomach ulcer a few months back and my life insurance agent asked me not to mention it on the proposal form. But my friend who works for a life insurance company said I should disclose this. Is it necessary to do so?
Life insurance is like any other legal contract. It is based on the principle of faith. The insurer decides to give you insurance cover based on the declarations made by you in the proposal form. In case there is any misrepresentation or suppression of any material fact in the proposal form, the insurer is well within his right to repudiate your claim.
Hence, I would agree with your friend and advise you to disclose your condition to the insurance company.
Readers are welcome to write in with their queries to askmint@livemint.com. The questions will be answered by senior executives from leading insurance firms.
This week’s expert is Rajesh Relan, managing director, MetLife.
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First Published: Sun, Jul 12 2009. 09 40 PM IST