The term of my life insurance policy is over, but I have misplaced my policy bond. What is the procedure to make a claim under such circumstances?
You need to apply to the insurer for the claim proceeds, along with a proof of ownership of the policy. You may also be required to provide an appropriately stamped indemnity bond and a surety, besides the discharge voucher for making the claim payment.
My father nominated my elder brother as a nominee of his life insurance policy. Will my brother become the sole owner of the policy proceeds if my father dies? Can’t my mother or I claim a right over that money?
A nominee is an authorised person who receives the policy money and gives a valid discharge to the insurance company, in case of the death of the life assured. However, it does not give the nominee an absolute right over the money received to the exclusion of other legal heirs. The nomination can be revoked or cancelled at any time during the lifetime of the policyholder at his will and pleasure, or by a subsequent assignment. All legal heirs have a right over the received policy money.
I am 35, married, and have two children aged six and three. My monthly salary is Rs 80,000. I want to buy a term plan. How should I calculate the right amount of cover? Also, do you think a premium-backed term insurance is better than a plain term plan? Or, should I choose between a term and a medical cover?
Taking a term plan is a wise decision to secure the financial needs of your family. It is calculated by discounting one’s future earnings net of tax and own expenses. It varies according to one’s age, future earnings and inflation.
In the term plan with premium return, the premium is given back on survival of the life assured at the end of the policy term. Hence, the premium for this plan is higher.
Make your choice on the basis of the life cover required and the premium payable. Further, considering an increasing medical cost, it is important that the family as a whole has continuous medical insurance. You shouldn’t choose only one of these, as both life and medical are important.
The writer is the managing director and CEO of Future Generali India Life Insurance. Send your queries to yourmoney@bsmail.in