Ask Mint | Your life cover can also provide for funds in times of need

Ask Mint | Your life cover can also provide for funds in times of need

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.

Yes, there are life insurance plans for stay-at-home moms. The need for life insurance comes from the need to safeguard your family if something untoward were to happen to you. Everyone wants the comfort of knowing that their loved ones are protected if any unfortunate incident happens. Your plan can also provide for funds in times of need, such as children’s education, marriage and sickness, helping you lessen the financial strain on your family.

I had a 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 firm, said I should disclose this. Is it necessary to do so?

Life insurance is like any other legal contract. In addition to that, it is based on a special principle—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 ­ The questions will be answered by senior executives from leading insurance firms.

This week’s expert is Rajesh Relan, managing director, MetLife.