Life Insurance: Amitabh Chaudhry

My daughter, 40, has been a little unstable mentally since she lost her husband a year ago. She has a 10-year-old son. Will she get term policies in her name?
She can apply for a term plan. However, life insurers will assess the application based on the severity and type of ailment before deciding to offer the cover.

What is the difference between an online term policy and an offline one?
If the same policy is offered both online and offline, the difference is only in the premium amount (the premium of online policies will be slightly lower than offline ones). However, with an offline policy, you will get the assistance of an agent who will help you with your policy. If looking at two different plans, one online and one offline, evaluate the complete product proposition in terms of features and benefits offered, rather than only considering the premium amount.

It is said that the earlier you buy a health insurance policy, the better. Is there a right time to buy a life insurance policy?
It is better to buy a life insurance policy as early as possible, when one starts earning. It is a must once the individual has dependants (children, spouse, parents who are financially dependent, etc). Buying early (say in the 20s) helps lock cheaper premiums for the entire policy term, owing to entering the policy at an early age. There is also a lesser possibility of any existing medical condition impacting the cost of cover or even the grant of cover to an individual. If your policy has a savings element, then investing early will help accumulate a substantial corpus over the long term, owing to the compounding effect.

My husband had taken a life insurance policy before marriage. My mother-in-law was the nominee. Now both my husband and mother-in-law are no more. I have submitted the marriage certificate and the death certificate, but haven't got the claims so far. What other documents are required?
This case would be considered as an open title claim and hence, we would require a succession certificate from a court of law or legal heirship certificate. However, this can be relaxed by the insurer depending on the case details and application for waiver of legal evidence of title, along with the surety and indemnity bond. If this policy was taken from HDFC Life, please provide us with the complete details of the policy to help you with the same. If it is taken from any other life insurer, you will have to get in touch with to know the exact requirements of documents.

The views expressed are the expert's own. Send your queries to yourmoney@bsmail.in
Today, Amitabh Chaudhry, managing director and chief executive, HDFC Life, answers your questions