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?
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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
