Amitabh Chaudhry, managing director & chief executive at HDFC Life, answers your questions
My annual income is Rs 10 lakh and I have taken a term plan of Rs 1 crore. My agent is asking me to take a personal accident cover as well. Should I?
A term plan and a personal accident cover are for separate insurance purposes. The personal accident cover will insure you financially in case of an accident (death or disability) and cover the expenses that arise afterwards (treatment of injuries, hospital expenses, etc). A pure term plan will protect your family/nominees in case of your death (accidental or otherwise). Ideally, one should have both plans in one's insurance portfolio, as these serve very different needs. The amount of cover will depend on multiple factors, such as your present level of income, debt obligations, obligations in the foreseeable future and the cover you already have.
Is it not possible to buy a life insurance policy without a medical check-up? Do I have to pay from my own pocket?
For certain policies, one needs to only answer a set of questions pertaining to one's health. In case of policies where a medical check-up is necessary, the cost is borne by the insurance company. Only if the policy is rejected due to medical reasons or is withdrawn by the customer during the free-look period (normally, 15 days from the date of receipt of the policy document), is the cost of adjusted from the premium amount returned to the customer. For plans where a medical check-up is mandatory, the policy will not be issued without the clearance of the medical underwriting team.
The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
