My parents are aged 62 and 60. They do not have any pre-existing conditions. We have a mediclaim policy from New India Assurance of ₹2 lakh each and the premium amounts to around ₹50,000. We haven’t made any claims in the last five years. Along with the basic plan, I have also opted for “optional coverage". There are certain clauses I don’t like and, hence, I am looking to port this policy to any one of the top-rated schemes in the Mint SecureNow Mediclaim Ratings. However, my adviser doesn’t suggest that. What should I do?
A sum assured of ₹2 lakh is low. So you must either port the policy to one with a higher sum assured, or buy a top-up plan to enhance this coverage. Portability ensures that the waiting period accrued in the existing plan gets transferred to the new plan. A health insurance plan does not have a waiting period for more than four years. Since your existing plan has already been running for more than four years, there will be no waiting period in the new plan. All claims would be admissible immediately.
The principal impact of room rent capping is proportionate reduction. Treatment package costs in most hospitals are linked to room type. So if your policy has a room rent restriction, only costs linked to that particular room type will be admissible. Since you have opted for the add-on to drop proportionate charges deduction, such a clause will not be applicable to you. However, excess rent paid for a higher category room, if chosen, will still be deducted. ICU limit is relatively straightforward. Any excess charge levied by the hospital, above the policy limit, will have to be borne by you.
I am 48 years old, single and unmarried. I don’t have any dependants. I live with my two dogs. Are there any policies that I can take to ensure that the dogs are taken care of in case of my death?
You can take a life policy and make an arrangement to ensure that your dogs become the ultimate beneficiaries. You would first need to identify a person who is willing to look after your dogs. This person can then be made a nominee in your life policy. In case of death, proceeds will go to this person. You would need to execute a Will, which would direct this caretaker to use the proceeds for the dogs’ welfare. In life insurance, parents, spouse and children are considered as beneficial nominees. A beneficial nominee can use the money received from life insurance. Any other nominee is only a custodian. Money has to be finally passed on to the legal heir of the insured.
Abhishek Bondia is principal officer and MD, SecureNow.in.