—Kapil Rathi

You can take an annual travel policy, which covers all your trips in a year. This policy works for frequent travellers. All travel insurance plans have basic covers, such as health insurance, accident insurance, trip cancellation and trip delay. While taking a policy, look for five points. One, check whether dental treatment is covered. Two, check the deductibles, the portion of the claim amount that you need to pay on your own. Three, check whether it will give a cover against terrorist acts. Four, find out whether the policy gives the cashless treatment facility at a comfortably large network of hospitals in the countries you visit. You may find it difficult to pay large sums of money for treatment abroad if the policy allows only reimbursement of claims. Five, ensure the helpline of the insurer is available in the countries you visit or you will be forced to make a call back to India when on a trip abroad.

When is the ideal time to take a term insurance? What risks can be covered through such a policy?

—Rajesh Khilani

The premium for term insurance starts increasing rapidly after 36 years of age. Therefore, take the maximum possible sum assured at the age of 35 years.

I rented out one floor of my house recently. I have a householder’s policy for the entire house. If the portion that’s rented out gets damaged, will it be covered under the policy?

—Vishnu Ram

A householder’s policy has separate sections to cover the building and the contents of the house. The owner of the building can cover the building whether it is being used by him or not. Therefore, your policy will cover the part of the house rented out by you. The policy will cover damages caused by certain reasons mentioned in the policy. The main risks covered under the policy are fire, explosion, earthquake, storm, floods, riots and terrorism.

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