Ask Mint Money | Health insurance premiums rise when you reach fixed age bands

Ask Mint Money | Health insurance premiums rise when you reach fixed age bands

My health policy is up for renewal. Will my premium necessarily go up during renewal?

—Shameek Das

Insurers increase rates for health insurance policies at fixed age bands. Most insurers provide rates for different bands. In case your age band is changing at the time of renewal, your premium will go up, else it will remain the same. Typically, the age bands are up to 25 years, 26-35 years, 36-45 years, 46-55 years, 56-60 years, 61-65 years, 66-70 years, 71-75 years, 76-80 years and 81-85 years.

I want to take a health cover for my wife aged 41 years and mother-in-law who is 63 years old. Should I opt for a family floater plan. I don’t need a policy since I am covered by my employer.

—Chetan Sharma

Though you are covered under your employer’s group health insurance, it is advisable to have an individual insurance. Your individual policy has many benefits. One, in case the medical expenses are more than the value of your cover under your employer’s policy, you can claim the excess expenses from this policy. Two, this policy will provide you cover when you change jobs. Three, with health insurance getting expensive, many employers are curtailing or even withdrawing health cover.

You can take a family floater for yourself and your wife for at least 2 lakh and a senior citizen policy for your mother-in-law. A senior citizen health plan may also cover pre-existing diseases such as diabetes and hypertension from Day 1. Another option is to take a family floater plan, which covers in-laws, too. This facility is available only with a few insurers and is a bit expensive.

Is there any policy under which I can get my jewellery insured? What would be the cost?

—Ramya Singh

Jewellery can be insured under a householder’s policy. There is a separate section in this policy for covering jewellery. The policy provides an all-risk cover to jewellery, which means that loss of jewellery due to fire, burglary, dacoity and snatching, among others, is covered. Since such a wide cover is risky for the insurer, they put a limit to the value of jewellery that can be covered. Most insurers cover up to 20% of the total value of other household goods covered in the policy. Insurers, typically, charge 1% of the value of the jewellery covered by them as premium.

While insuring jewellery, it is very important to get the jewellery valued by a government-approved valuer and submit a valuation certificate along with the proposal form. This certificate also establishes the identity of the jewellery as it contains detailed description of the ornaments. In the absence of such a certificate, you may face difficulty in establishing your claim in case of a loss.

Rahul Aggarwal is director, Optima Insurance Brokers

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