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 single, 23 years old and work as a software engineer in Bangalore. Do I need to buy any life insurance as I am so young?
Yes, you do need to buy life insurance. Because you are young, you will have to pay low premiums and can in probability avoid medical tests. Life insurance protects your future earning potential. In case something happens to you, your parents will not be deprived of your earning.
I had a pus formation in my ear a few months ago 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 it. Why?
Life insurance is like any other legal contract. In addition to that, it is based on the principle of utmost good 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. This may cause unnecessary difficulty to your family and could end up defeating the cause for which you took life insurance in the first place.
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.