BackHaving senior citizens in floater cover will raise premium
It is always advised that senior citizens should take a separate policy for themselves
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I am 30 years old and my wife is 27 years old. I live with my father and mother who are 62 and 59 years old, respectively. I plan to take medical cover for all of us. Which will be the most cost effective way and why: taking individual policies or taking a family cover?
—R. Singh
The cost-effective way is obviously taking a family floater but it is not advised in your case. The premium in a family floater policy is determined on the basis the age of the eldest member, so in your case, it would be on the basis your father’s age. This will surely increase your premium. Plus, it is always advised that senior citizens should take a separate policy for themselves as with age their propensity to have a medical condition increases. Thus, there is always the risk that one person may eat up the entire floater and leaving nothing for the rest.
I would suggest you to take a floater plan for yourself and your wife and two individual health plans for your mother and father.
I am 29 years old and want a term plan. My yearly income is ₹ 8 lakh. I plan to buy a term plan of ₹ 75 lakh. Is it a good decision? Should I buy online?
—Angad
Buying a term plan at a young age is always a good decision as it helps cover you and takes care of your financial responsibilities. The amount chosen by you is also correct as the level of term cover should always be 8-10 times your annual income.
Online term plans offer benefits such as easier processes and direct interaction with the insurer. The most important of all, they come at a low price as no commissions have to be paid to any third party. These benefits work in the favour of the policyholder.
I have just been diagnosed with diabetes, but doctors say I had it for the last few months. I bought a medical policy two weeks back and have underwritten that I am not diabetic. What happens to my policy? Will it be honoured? What will happen if I make the disclosure now?
—Namit
If you don’t disclose this condition to your insurer, the claims would not be honoured but these will be only those claims that have a direct linkage to your diabetic condition. It is always suggested that you tell the insurer the truth. If you make the disclosure now, the insurer may request you to go in for an additional medical test and charge you some extra premium based on your present condition. But once the insurer accepts the risk, you don’t have to worry about your claims.
Queries and views at mintmoney@livemint.com
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