Anuj Agarwal, CEO of Bajaj Allianz Life Insurance , answers your questions
Is life insurance claim rejection as common as that in case of health insurance? On what basis can a life insurance claim be rejected?
A claim can be rejected only if it does not comply with the terms and conditions of the policy. A life insurance claim is typically rejected in two scenarios, that is, if a death occurs during the lapsation period or in case the policy is lapsed condition, which means the premiums have not been paid within the grace period. The second case is when the insured has not disclosed his/her actual health status while availing the policy. So, it is necessary that one pays premiums regularly within the grace period to continue with the policy benefits and to be careful while filling the proposal form, to ensure the declarations made are true.
I want to buy an insurance cover for my son, who is two years old. What kind of product would suit him? Should the policy be bought in his name or in mine?
While deciding on a plan for your child, you should keep two objectives in mind. One, a sufficient fund to take care of your child's expenses, like education and other financial expenses so that his education is not compromised on in case of any unfortunate event. The second objective is to create a corpus for the child's higher education or any pre-decided milestones linked to your child's development.
Once this decision is made, based on your financial goals for the desired time horizon, chose a product that will fulfill these conditions. Ideally you should buy a plan in your name as the life assured and your son as the nominee, as this would ensure a definite payment at policy maturity or untimely death whichever is earlier. You can also consider a premium waiver rider option, which ensures waiver of future premiums from the date of an unfortunate death.
Can I pay my premium through my credit card? Is there any extra charge?
Yes, you can pay premium through your credit card. Today, most insurance companies allow this. There is no extra charge.
The views expressed are the expert's own. Send your queries to yourmoney@bsmail.in