I had bought a travel insurance plan in January. However, I haven’t travelled ever since the lockdown. Is it possible to extend the travel insurance period? Also, will it make sense to buy separate travel insurance now or just opt for the one that airlines provide?
You seem to be referring to an annual multi-trip plan. There is no provision in such a travel insurance plan to extend the validity because the country was in a lockdown. You could, however, explore cancellation of the plan, if you no longer plan to travel during the rest of the year. This will allow you to get part of your premium refunded for the unexpired policy period. The policy wordings specify the methodology for premium refund in case of cancellation.
Also, you can consider buying trip-specific travel insurance. You have both options—buying at the time of ticket booking or buying a stand-alone insurance. You should ensure that the policy covers emergency medical treatment abroad, personal accident, personal liability cover, flight cancellation and loss of baggage. Some airline-specific travel plans are restricted to flight delays and cancellation covers. That is not sufficient.
Remember that the claim process does not vary by the mode of purchase. Your claim will be settled by the insurer, and the airline or travel agent will have limited role.
I bought a term plan 10 years ago. At that time, the sum assured was 10 times my annual salary. Over the years, my salary has increased. Should I top it up now? I have dependant parents and children. Since I am in my 40s, will the premiums be a lot higher for the same amount of cover? I am a healthy individual.
It is imperative to have sufficient sum assured in your term plan so that your dependants get enough financial assistance in case of your premature demise. Given the economic inflation and the rise in the cost of goods and services, you should definitely top up your policy. To do so, you could invest in another term insurance plan as your current one might not allow enhancement of the sum assured. The premium of the policy is likely to be higher than what you paid 10 years ago. This is because premiums depend on age. The older you are, the higher would be the premium charged even if you are healthy and free of disease. However, the respite is that the general cost of term insurance has come down as compared with 10 years ago. So, while there may be an increase, it may be moderate.
Abhishek Bondia is principal officer and managing director, SecureNow.in. Queries at firstname.lastname@example.org