(Photo: iStock)
(Photo: iStock)

Family floater policies only cover legally recognized relationships

Except for spouse, children and parents, any other member of the family are only considered as custodian of the insurance proceeds

I am in a live-in relationship and we want to buy a health cover for both of us. Will we be eligible for a family floater plan? How do we select a plan?

—Mukund Singh

Family floater policies cover legally recognized relationships. Most policies cover the individual, spouse and children. A few policies cover extended relatives as well but even these do not cover partners in live-in relationships. It would make sense for both you and your partner to take separate individual covers.

First, shortlist insurers with a claim settlement ratio of over 90%. Thereafter, filter plans that offer no room rent capping, no co-pay and no disease-wise restrictions. From such plans, choose the one with high no-claim bonus and low premium. You can refer to the Mint SecureNow Mediclaim ratings to select a suitable plan.

My brother and his wife died in an accident. I am the nominee in their insurance policy. The insurer is asking for a legal heir certificate but I don’t have one. What should I do?

—Sumitra Nanda

Spouse, children and parents are considered as beneficial nominee in insurance. All others are only considered as custodians of the insurance proceeds, which need to be finally passed on to the legal heirs by the nominee. That’s why an insurer may ask for a legal heir certificate to avoid future dispute with legal heirs. However, insurers are obliged to discharge the insurance proceeds to the named nominee, irrespective of whether you have a legal heir certificate or not. You should escalate your case to a senior executive. If it is still unresolved, you can approach the grievance cell or the insurance ombudsman.

I am a 34-year-old single man. I don’t plan to get married and start a family anytime soon. My parents are not dependant on me as of now but may become dependant on me in future. Is it advisable for me to get a life insurance cover? If yes, how much insurance should I buy?

—Ankur Chawla

A life insurance policy is a must-have cover against the risk of premature death. Since it is likely that your parents would depend on you in future, you should invest in a life insurance. At a young age, the premium of the policy would be low and locked in for the term of the plan. As a rule of thumb, your sum assured should be at least 10 times your annual income.

Abhishek Bondia is principal officer and managing director, SecureNow.in. Queries and views at mintmoney@livemint.com

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