Amitabh Chaudhry, chief executive officer at HDFC Life, answers your questions
Can I buy a life insurance policy for my brother as a gift? Who will get the tax benefit?
In case your brother is a financially independent adult, this arrangement might not be possible. However, if your brother is a minor and financially dependent, it can be executed. In this case, since you are the proposer and will be paying premiums, you will be eligible for tax benefits in line with the policy provisions.
Is a medical test mandatory for purchasing a life insurance policy? On what grounds can a life insurance policy be rejected?
Nowadays, there are several products in the market for which a medical test is not mandatory. This is mostly available till a certain level of Sum Assured (the life cover under the policy), after which one may be required to go for medicals. However, this does not imply one can hide details regarding medical well-being. One is still required to provide a declaration stating his medical health in the application form. In case some details are not disclosed at the time of application, it may result in issues during claims. A life insurance policy application may get rejected for multiple reasons. In case the claim arises due to a condition or event excluded under the plan, the claim will not be honoured by the insurance company.
The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
Can I buy a life insurance policy for my brother as a gift? Who will get the tax benefit?
Read more from our special coverage on "READERS' CORNER"
In case your brother is a financially independent adult, this arrangement might not be possible. However, if your brother is a minor and financially dependent, it can be executed. In this case, since you are the proposer and will be paying premiums, you will be eligible for tax benefits in line with the policy provisions.
Is a medical test mandatory for purchasing a life insurance policy? On what grounds can a life insurance policy be rejected?
Nowadays, there are several products in the market for which a medical test is not mandatory. This is mostly available till a certain level of Sum Assured (the life cover under the policy), after which one may be required to go for medicals. However, this does not imply one can hide details regarding medical well-being. One is still required to provide a declaration stating his medical health in the application form. In case some details are not disclosed at the time of application, it may result in issues during claims. A life insurance policy application may get rejected for multiple reasons. In case the claim arises due to a condition or event excluded under the plan, the claim will not be honoured by the insurance company.
The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%