Reader's corner: Factors to consider before getting a life insurance policy

Until recently I had relied on the health insurance policy given by my employer. I am getting married and want to take up a health policy that covers my wife as well. What are the key features that I should look at in an insurance plan?

Congratulations on your impending marriage and to take a separate health insurance policy is a great decision! It is always advisable to buy a separate health insurance policy which would protect you and your family irrespective of whether you are employed or not. The points that should be considered while buying health insurance plans are

i. Adequate Sum Insured, we advise at least Rs 1 million sum insured in case you foresee treatment in urban hospitals and at least Rs 700,000 in case of sub-urban based hospitals.

ii. The policy should ideally not have any sub-limits or co-pays.

iii. The policy should provide you cashless coverage in the hospitals that you foresee using in case of any medical emergency.

iv. Apart from regular hospi­talisation expenses, pre and post hospitalisation expenses and ambulance cover, we suggest you to look for maternity cover also. Most health insurance products have a waiting period for maternity cover which you will possibly need in due course. However,you may ignore this if your group health insurance covers this.

v. We also suggest you look for optional covers like restoration of sum insured, hospital daily cash allowance, and enhance­ment of cumulative bonus etc. Usually, these optional benefits come at a relatively lower cost but provide great value.

I am considering taking up a family floater cover. Would it be advisable to cover my children (above the age of 18) under the same policy? What is the maximum age for children to be taken under a family floater cover? 
 

It is always advisable to buy health insurance cover for your entire family including children. The premium charged under family floater policy is comparatively lesser as compared to individual policy. Depending on your budget and required sum insured, you may either opt for family floater or individual policy. Most of the health insurance providers allow children up to the age of 25 years under a family floater policy.  

I will be taking three trips to European countries and the Caribbean within the next seven months. My partner and our two children, both under 12, will accompany us. Are there family floater travel plans? Will I save money if I opt for multi-trip travel insurance?

Yes, Family floater plans are available under overseas travel insurance policy. You will save money if you opt for Annual multi-trip plan. However, there will be a capping on number of days per trip, that is, 15,30, 60 or 90 or with a little variation. We suggest you plan this as per your travel schedule. Also, in case you are travelling to Schengen countries, please do check their insurance requirement which is available at the websites.  

I have just booked a holiday to Croatia in the summer with nine friends who are all aged 25. We are staying in Croatia for 10 days and visiting the Ultra Music Festival. What insurance would be best for us and how do I know what I am covered for?

You may go for an individual plan under overseas travel insurance policy covering hospitalisation expenses, repatriation in case of emergency, in-transit covers like baggage loss/delay, passport loss etc. You may also opt for extended covers such as theft cover etc. Yes, the insurance terms and conditions can be confusing and we strongly suggest that you read them and ask for clarification.

What's my liability if someone else is driving my vehicle at the time of an accident?

If your vehicle is involved in an accident resulting in death of and / or injury to and / or damage to the property of third party, being the owner of the vehicle, you may be held liable to pay compensation to the victim and / or his/her legal heirs and / or owner of such damaged property, as the case may be. However, in case if you have valid insurance policy for the vehicle covering such an accident and the person driving the vehicle holds valid and effective driving license, insurer will, subject to the other terms and conditions specified in the Policy, indemnify you for such losses to the extent of limits mentioned therein in the policy.

I am a first-time car buyer planning to buy an SUV. I checked the insurance prices online. Why do premiums for the same car vary widely from insurer to insurer?

Premium for the same car, having a common IDV, varies widely due to the difference in discounts offered by the Insurers depending upon their risk experience on the particular Make/Model/Geography etc. Furthermore, due to different Add-ons attachments and coverages offered by insurers, your car premium may also vary.

Wife and I are both working. Both our employers provide health insurance and we have added each other as family in our respective group policy. In case ofhospitalisation, how will we get the claim?

You may claim from either of the policy. In case the Sum Insured offered under one policy is fully utilized,the remaining amount can be claimed from the other policy.