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 (Photo: iStock)
(Photo: iStock)

Standard term plan does not cover disability

  • Porting will be allowed to the individual plan of the same insurer as the group policy
  • Personal accident plans cover accidental deaths and disability

I am covered under a group health insurance plan provided by my employer. I would be retiring soon. Can I port the policy to an individual health plan? Can I change the sum insured?

Philip Abraham

Yes, porting of a health insurance plan from group coverage to an individual coverage is allowed. The waiting period in the individual plan will be waived to the extent of stay under the group plan. Porting will be allowed to the individual plan of the same insurer as the group policy. Further, duration of coverage under the same insurer’s group plan will count towards continuity benefits.

You can also increase or decrease the sum insured. If the sum insured is increased, there might be a separate medical underwriting for the increased portion of the coverage. Moreover, the benefits of continuity would not apply on the increased sum insured. For the increased portion, there would be a fresh waiting period for pre-existing illnesses as specified in the plan.

Premium and benefits will apply as per your plan. This may be different from the coverage under group insurance.

I am a 40-year-old male and am considering buying personal accident insurance. What exactly is covered under it? I already have a term cover. Do I still need it?

Bhushan Kumar

Personal accident plans cover accidental deaths and disability. Some of the basic coverage benefits which are available in these plans include accidental death, total permanent disability, partial permanent disability and total temporary disability.

Besides these basic benefits, several insurers offer additional benefits. You can find coverage for ambulance expenses, funeral expenses, fractures and burns, and child’s education fund. Typically, these benefits are in-built with the basic coverage. Some insurers offer these as optional benefits for additional premium.

Term life covers death, either due to accident or natural. So, the accidental death benefit is an overlap with term life. However, standard term insurance does not cover disability.

In case you have an existing term insurance cover, then you can limit personal accident coverage up to one to two 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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