1 min read.Updated: 28 Aug 2021, 09:46 AM ISTLivemint
Moving to another country will not affect one's life insurance cover. However, the insurance cover will not be valid outside India. A health plan bought in India is meant to cover expenses on medical treatment in India.
I bought a 25-year term insurance cover of ₹1 crore four years ago. I also have a medical insurance plan for myself and my family. I will soon be moving to Germany. Will my life insurance and medical insurance cover remain valid if I move abroad?
Moving to another country will not affect your life insurance cover. It will remain valid as long as the premiums are paid regularly every year. However, do inform your life insurance provider about your plan to shift to a foreign country.
Your medical insurance cover will, however, not be valid outside India. A health plan bought in India is meant to cover expenses on medical treatment in India. Almost all health insurance policies have geographical restrictions, which say that expenses incurred outside India will not be covered. This is also why Indians going for studies abroad are encouraged to not rely on the health insurance plans bought in India but to buy a policy in the destination country.
I will turn 60 in December. My medical insurance policy is due for renewal next month. The premium for one year is ₹24,775 but the company is offering a discount on multi-year policies. A two-year policy is for ₹45,600 and a three-year plan is for ₹66,400. Should I go for a multi-year policy?
-Name withheld on request
After the age of 60, medical insurance premiums shoot up due to the higher risk. The premium of your medical plan will be significantly higher next year. A multi-year medical insurance plan is a good idea because it will safeguard you from a hike in premiums. Yes, paying the premium in advance may seem like a burden, but the discount offered by the company will compensate for the opportunity cost of the additional amount. However, do check if the company will refund the second- and third-year premium in case you decide to shift to another health insurance provider.
Raj Khosla is Managing Director at MyMoneyMantra.com. Queries and views at email@example.com