Bert Paterson

Bert Paterson

Ask Mint | Most insurance cos provide permanent total disability riders

Ask Mint | Most insurance cos provide permanent totaldisability riders

The insurance business in India isn’t just growing, but it is 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 25-year-old army officer. Since my job involves high risk, I would like to know if my insurance policy can cover both death and permanent total disability?

Bert Paterson

I have a dependent mother, 50 years of age. I have just started working and am 24 years old. What are the insurance plans I can invest in to secure her future?

It is advisable to undergo a ‘financial health check’ or consult your financial planning adviser before deciding on an insurance plan.

Instead of just investing in a term plan, you could go for a unit-linked endowment plan, which would give you the benefits of both life cover and long-term savings and investment. You could make your mother the nominee, thereby making her eligible to the sum assured or fund value, whichever is higher, in the unfortunate case of your premature death.

Also, although your mother is now 50, it is never too late to start planning for her retirement, so you should consider investing in a private pension plan on her behalf.

I am 30 years old; I work for an MNC and have an annual income of Rs15 lakh. I have a six-year-old son. I want to invest in a plan that can secure my child’s future and provide for his needs in case I am not around. Which plan should I invest in?

There are a number of child plans available in the market today. These not only help to secure the child’s future but also allow them the freedom to pursue their dreams in case of any unfortunate eventuality. The plan that you choose should have features such as premium waiver—all the remaining premiums get waived and the policy continues incase of the unfortunate death of the parent; income benefit rider—this ensures a regular income for the child in case of the unfortunate death of the parent; comprehensive health benefit rider—in case the parent suffers from a prolonged illness, the sum assured can be paid and all future premiums waived.

There are plans which also cover the life of your child. As your child is a minor, a policy bought by you in your child’s name will entitle you to avail tax benefits under Section 80 C and Section 10(10D).

Readers are welcome to write in with their queries to The questions will be answered by senior executives from leading insurance firms.

This week’s expert is Bert Paterson, managing director, Aviva India.