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Health
1)What is health Insurance? The term health insurance is a type of insurance that covers your medical expenses. A health insurance policy is a contract between an individual /group and an insurer in which the insurer agrees to provide specified health insurance cover at a certain premium.
2)What are the types of health insurances available? The general form of health insurance policies cover expenses incurred on hospitalisation, although a range of products are currently available that offer a range of health covers, depending on the requirement and preference of the insured.
3)How does health insurance work? Health insurers generally provide either direct payment to the hospital (cashless facility) or reimburse the expenses related with illnesses and injuries, or disburses a fixed benefit on occurrence of an illness. The type and amount of health care costs that will be covered by the health plan are specified in advance.
4)What are the key features of a health insurance plan? Policies are there for both individuals with family cover or family cover such as family floater plans. The insurance provider covers specific medical expenses of the insured based on the premium paid by the insured. Policy covers physician’s fee, surgery costs, room rent, and laboratory tests. Also provides coverage for critical illness (certain conditions are attached). The policy covers hospitalisation charges. Pre and post hospitalization expenses are covered under this plan. Lifetime renewal. Tax deductions under section 80D of the Income Tax act. The insured also pays a predetermined amount for specific health care services. This is called co-payment. Free health check-up of insured person is provided after 4 claim free years of policy with the same insurer up to certain prescribed limits in the policy. Some policies also provide for hospitalisation where less than 24 hours hospitalisation is required.
5)How is the premium amount decided by the health insurance company? Age Plans features that the insured opts for Composition of the family City of residence Previous medical history is another major factor that determines the premium. If no prior medical history exists, premium will automatically be lower. Some insurers give 10 % family discount in premium if mediclaim insurance is taken for the family. Claim free years can also be a factor in determining the cost of the premium as it might benefit you with certain percentage of discount. This will automatically help you reduce your premium.
6)What is the minimum/maximum amount for sum insured in health insurance? Health insurance policies are available in different amounts as much as even sum insured for 1Crore. As the room rents and other expenses payable by insurers are increasingly being linked to the sum insured opted for, it is advisable to take adequate cover from an early age, particularly because it may not be easy to increase the sum insured after a claim occurs.
7)What is the time period for a health insurance policy? Most companies offer health insurance policies for a duration of one year, but there are policies that are issued for higher duration.
8)What are the exclusions in individual health insurance plans? Pre-existing illnesses or diseases (However, after one, two three or four renewals of policy which varies from insurer to insurer, the pre-existing diseases may be covered if the renewal is obtained from the same company). Preliminary treatment costs and cost of health supplements such as tonics and vitamins excluded, unless such medication is prescribed for treatment. Diseases due to hereditary/congenital external diseases Treatment without hospitalisation such as dental treatment, cosmetic/plastic/sex change surgeries, hormonal replacements, optical procedures, psychiatric disorders are generally excluded. Sexually transmitted and venereal diseases such as AIDS, Syphilis and so on Ayurveda, Homeopathy, Naturopathy, Siddha, Unani and other non-allopathic treatments. Injuries/illnesses due to war, terrorism, civil unrest, nuclear risks, perilous activities, suicide attempts, and acts of negligence.
9)What is pre-hospitalisation expenses coverage? Pre-hospitalisation expenses refer to the expenses incurred before a patient is moved to a hospital for inpatient treatment. Relevant medical expenses such as medical tests, medicines, vaccinations, doctors’/medical practitioner’s fees can be considered as part of the pre-hospitalization expense in a health insurance policy. Normally the time limits varies form 30-60 days.
10)What is post-hospitalisation expenses coverage? Post-hospitalisation expenses are similar in nature, and sometimes referred to as recuperation expenses i.e. the relevant medical expenses incurred by the insured to regain his/her pre-illness/injury condition. Normally the time varies from 60-180 days.
11)Are there any pre-conditions for pre and post hospitalisation coverage? Yes. The insurer has accepted the claim for hospitalization expenses. The expenses have been incurred for the same illness/injury/disease for which the hospitalization was required. The expenses have been incurred within the time limits prescribed by the insurer. The hospitalisation was inpatient treatment and not domiciliary hospitalization
12)What is daily sum insured? Some policies offer a fixed daily sum insured for each day of hospitalisation. There may also be coverage for a higher daily benefit in case of ICU admissions or for specified illnesses or injuries.
13)What is surgical cash benefit? There are also other types of products, which offer lumpsum payment on undergoing a specified surgery (surgical cash benefit), and others catering to the needs of specified target audience like senior citizens
14)What is age limit for senior citizens health insurance policies? Some policies offer coverage from 55 years upto a maximum of 80 years, and some policies there is no upper limit.
15)What is cashless facility? • Insurance companies have tie-up arrangements with several hospitals across the country as part of their network. Under a health insurance policy offering cashless facility, the insured can take treatment in any of the network hospitals without having to pay the hospital bills, since the payment is made to the hospital directly by the TPA, on behalf of the insurance company. However, expenses beyond the limits or sub-limits allowed by the insurance policy or expenses not covered under the policy; have to be settled by you directly with the hospital. Cashless facility, however, is not available if you take treatment in a hospital that is not in the network.
16)What is room rent limit? The limit is either expressed as an absolute amount or as a percentage of the sum insured. Your entire health insurance claim for in-patient hospitalisation would depend on the room rent limit of the plan. Not only would the coverage be capped for the room rent, other treatment costs and doctor’s/surgeon’s fees would also depend on the room rent limit if you go overboard.
17)Are there policies that does not have room rent limit? Yes. Some policies do not have a cap on room rent. However there are certain terms and conditions to be followed
18)What is e-opinion expenses coverage? On request of the insured person diagnosed with a critical illness, treating doctors will arrange for a second opinion from a medical practitioner selected by the insured person from their approved panel of doctors. This expenses are usually reimbursed and can be availed once in a policy year.
19)What is reinstate claim or restore benefit? It is the automatic re-instatement of the basic sum insured, if the basic sum insured and multiplier benefit has been exhausted during the policy year. Basic sum insured will be re-instated only once in a policy year.
20)What is reserve benefit? • Some policies provides a separate sum insured which can be used for OPD expenses, any non-payable items under health insurance claim or to pay upto a certain percentage (usually 50%) of your renewal premium. Reserve Benefit will keep increasing every year and any unutilised balance under this benefit will be carried forward to next year with certain percentage as bonus
21)What is day-care procedure and domiciliary treatment coverage in health insurance? Medical expenses incurred for all day-care procedures, which do not require 24 hours hospitalisation due to technological advancement, are covered. Domiciliary treatment cover expenses involved in getting a treatment done at home which otherwise would need hospitalisation.
22)What is sum insured enhancement? Sum insured can be enhanced only at the time of renewal subject to no claim have been lodged/ paid under the policy. This serves as a top-up plan to a basic healthcare plan as many a time the cover provided by a basic plan is not enough and the insured might not be willing to buy another policy to supplement his necessity. In case of increase in the sum insured waiting period will apply afresh in relation to the amount by which the sum insured has been enhanced. However, the quantum of increase shall be at the discretion of the insured.
23)Is there any waiting period for claims under a policy? Yes. When you get a new policy, generally, there will be a 30 days waiting period starting from the policy inception date, during which period any hospitalisation charges will not be payable by the insurance companies. However, this is not applicable to hospitalisation occurring due to an accident. This waiting period will not be applicable for subsequent policies under renewal.
24)Are there policies for pre-existing or critical illness in health insurance? Pre-existing diseases are categorised as diseases which an individual has before buying health insurance policy. Not all pre-existing diseases are covered from the time of buying the health policy; time taken to cover pre-existing diseases will differ from plan to plan. Health insurance plans, generally, come with a waiting period of 2-4 years in case of pre-existing illnesses.
25)Are there policies covering cancer? Yes policies allow for coverage of cancer illnesses. Sum assured varies from policy to policy. Additionally lump sum cover upto a certain percentage of the sum insured for recurrence, metastasis, and/or a second malignancy unrelated to first cancer is at also allowed.
26)Are there policies covering cardiac illnesses? Yes. Policies provide coverage for cardiac illnesses. There are policies for persons who have undergone surgery / intervention / correction for the existing cardiac diseases. Apart from the basic hospitalization cover, it covers boarding charges, rent charges, nursing charges, surgeon's fee, anaesthetist, specialist fee, medical practitioner, cost of medicines and drugs as well. Along with it, pre hospitalization and post hospitalization charges, ambulance charges, pre-existing diseases are also covered.
27)Are there policies covering diabetes illness? Yes, some policies allow for coverage of diabetes illnesses. It generally covers hospitalization expenses for complications of Diabetes, both type 1 and type 2 and other than complications of diabetes. Policy can be taken on individual and floater basis.
28)What is critical advantage rider? Some policies cover certain major illnesses as listed in the policy. The rider offers you freedom to not only avail best healthcare services world over but also covers all travel costs for the insured and accompanying relative, accommodation expenses, second opinion & post hospitalisation expenses. This rider can be issued to an individual and/or family only on individual sum insured basis. Also some riders offer a fixed lump sum for ICU admission and specific surgeries.
29)Are there policies to cover maternity expenses, as well as, coverage during pregnancy? • Yes there are policies for covering maternity expenses. The policy cover expenses for delivery expenses (both normal and caesarean), cover for newborn baby, covers regular hospitalisation, and there is no pre-acceptance medical screening. There are some policies that focuses on pregnant ladies - giving them a shield against hospitalization costs through pregnancy furthermore, tending to the different maternity and wellbeing related issues uses through this time span.
30)Are there any special policies for women? Yes. There are many special policies designed for women. The types of expenses covered and other terms and conditions differ from company to company
31)Is there any special coverage for children with autism disorder? Yes. Some polices are available which are specially designed to provide medical insurance cover for children diagnosed with Autism disorder
32)Does health insurance policies cover expenses of organ donors? Yes. Some policies cover treatment expenses for the organ donor at the time of organ transplant.
33)Are there separate personal accident policy in health insurance? Yes. The policy term under this plan ranges from 2 to 3 years. The benefits under this plan is payable if demise occurs from an accident. This policy covers the physical loss such as disablement and death of a person under the policy within a frame of 12 months from the actual accident. The percentage of sum payable varies for in case of total permanent disability, and in partial disability
34)What is overseas health insurance? • An overseas travel insurance policy is an exclusive plan that takes care of you and your family in foreign countries as well. Usually people don’t pay attention to it and get stuck in difficult situations. This plan ensures that you will enjoy your trip completely. Overseas travel insurance plan offers wider coverage. It provides the required coverage on physician services, hospitalization expenses, local emergency medical transportation and medical services among others. Additionally the policy covers e treatment expenses and the related charges if the insured meets with an accident. The insured will also be covered of baggage coverage, delay of checked-in baggage up to some limits. If the insured loses his/her passport during the trip, then the insurer will provide assistance in the same as per the terms of the policy.
35)Are there any special policies for girl child? Yes girl child from 3 months up to 25 years can be covered provided they are financially dependent on the parents and one or both parents are covered simultaneously. The upper age limit will not apply to mentally challenged daughter(s) and unmarried dependent daughter(s).
36)What is preventive health check-up coverage? Reimbursement for a preventive health check-up package taken for general assessment of health status. However it does not include any diagnostic or investigative medical tests for evaluation of illness or a disease.
37)Who are TPAs? • General insurers have entered into the agreements with the Third Party Administrators (TPAs) health services who are licenced by IRDA and who offer post-insurance, claim services to the insured. Photo ID cards are given by the TPAs to the policy holders, and the insured is required to approach the TPAs while needing hospitalisation, for advice regarding the panel hospitals for cashless service treatment. TPAs also give the list of network hospitals in advance to the insured for the use at the time of medical emergency. On the other hand, the insured can select the hospital of his/her choice, pay the hospital bills himself/herself and later on claim the reimbursement from the TPA
38)What are the procedures for filing claim under reimbursement of expenses? If the insured is hospitalised in any of the non-empanelled hospital than the insured must intimate the insurer/TPA within 7 days of the hospitalisation along with the name of the person who is ill, the hospital’s name and doctor who is attending the patient, policy name. Final claim form along with all the related bills must be submitted within 30 days of discharge from the hospital
39)What are the procedures for cashless claim? In case of planned hospitalisation, the anticipated expense along with the policy number must be sent to the TPA. Once the TPA confirms, treatment can be started. If there is any increase in expenses, hospital must issue a revised estimate to the TPA for approval. Post hospitalisation expenses bills must be sent to TPA after completion of the treatment In case of emergency hospitalisation, the Photo ID card issued by the TPA must be shown to the hospital. The anticipated expenses are sent to the TPA for approval. Post hospitalisation expenses bills must be sent to TPA after completion of the treatment
40)What happens if the claim is divided over two policy period? In case hospitalisation expenses are divided over two policy period, then the claim is settled after considering the sum insured as per two policy periods. If the policy is not renewed the claim is still settled based on the sum to be insured on the renewal policy period, and the premium amount is deducted from the claim
41)What is cumulative bonus? Health Insurance policies may offer cumulative bonus wherein for every claim free year, the sum insured is increased by a certain percentage at the time of renewal subject to a maximum percentage (generally 50%).
42)What happens to the policy coverage after a claim is filed? After a claim is filed and settled, the policy coverage is reduced by the amount that has been paid out on settlement. For example, In January you start a policy with coverage of INR 15 lakhs for the year. In June you make a claim of INR 6 lakhs. The coverage available to you for the July to December will be the balance of INR 9 lakhs.
43)What is portability? One of the benefits that health insurance plans offer today is portability. The policyholder will be allowed to switch from one insurance company to another without compromising on the waiting period or any other features and benefits which were available with the previous insurer. However, this credit will be limited to the sum insured including bonus, under previous policy. For details, you may check with the insurance company. While choosing a health insurance plan, check if the policy can be ported later to another insurer.
44)What is co-payment? Co-payment is where the insured pays a certain percentage of the total declared amount, while the balance will be paid by the insurance company. This proportion is decided earlier between the insured and insurance company.
45)What is the maximum number of claims allowed over a year? Any number of claims is allowed during the policy period unless there is a specific cap prescribed in any policy. However the sum insured is the maximum limit under the policy. However if no claims are made, insurance companies in their mediclaim insurance add 5 % bonus in the form of increased sum insured for every claim free year up to a maximum of 50 % bonus.
46)What is ‘health check facility? Usually this is 45 days. Some health insurance policies pay for specified expenses towards general health check-up once in a few years. Normally this is available once in four years
47)If my policy is not renewed in time before expiry date, will I be denied for renewal? The policy will be renewable provided you pay the premium within 15 days (called as grace period) of expiry date. However, coverage would not be available for the period for which no premium is received by the insurance company.
48)What happens to the renewal of policy if there is a claim for any critical illness (s) during the insurance period? As per IRDA it is mandatory to renew the policy irrespective of the claim/illness
49)What do you mean by family floater plan? Family Floater is one single policy that takes care of the hospitalisation expenses of your entire family. The policy has one single sum insured, which can be utilised by any/all insured persons in any proportion or amount subject to maximum of overall limit of the policy sum insured. Quite often family floater plans are better than buying separate individual policies. Family Floater plans takes care of all the medical expenses during sudden illness, surgeries and accidents
50)What is meant by free look-in period? • On the first inception of the policy, the insured has a period of 15 days from the receipt of the documents to review the terms and conditions of the policy as per IRDA’s rule. Within these 15 days, a policyholder can return the policy, stating the reasons for his/her objection, if he/she disagrees to any of the terms or conditions. If a policyholder returns the policy, he/she would be entitled to refund of the premium paid after a deduction of the expenses incurred by the insurer on his medical examination and stamp duty charges. In cases where the risk has already commenced when the option of returning the policy is exercised by the policyholder, the refund of the premium paid would also be subject to a deduction for proportionate risk premium for the period on cover. When only a part of the risk has commenced, such proportionate risk premium shall be calculated as commensurate with the risk covered during such period. Insurers can also voluntarily opt to provide such a free-look period even in health insurance policies of duration less than three years, the regulator said.
51)What are the various options under health insurance? The sum insured is doubled in case of critical illnesses such as cancer, cardiac problems and so on After a certain waiting period maternity benefits are available (limited upto expenses of delivery) including expenses related to new born baby upto to the date of vaccination OP (Out-Patient) treatment charges and wellness programs are covered upto a specific amount depending on the sum insured, on production of the bills
52)What is a package policy? Package policy which insures not only hospitalization expenses but also critical illness, hospital cash, contents of house, personal accident insurance, travelling baggage, public liability, in a single plan.
53)What are the tax benefits I get if I opt for health insurance? Section 80Dof the Income Tax Act which provides tax benefits for health insurance. For Senior Citizens the Tax benefits are more.

Travel
1)What are the general coverages in travel insurance? Medical treatment, including transportation to the medical facility. Cancellation, curtailment and trip interruption Repatriation of remains Return of a minor Trip cancellation Trip interruption Visitor health insurance Accidental death, injury or disablement benefit Overseas funeral expenses Lost, stolen or damaged baggage, personal effects or travel documents Delayed baggage (and emergency replacement of essential items) Flight connection was missed due to airline rescheduling or delay. Travel delays due to weather Hijacking
2)When should I buy travel insurance plan? You may purchase travel insurance up until the day before your journey date from most travel insurance carriers. But the quicker you do it, the better, for multiple reasons. It all depends on how short your trip is and what kind of covers you need. Most travel insurance schemes will provide indemnification for pre-existent medical conditions that are properly managed (agreeing to adhere to timely medication and checkups), if you get the cover within a few weeks of your initial tour payment. Since around 20 percent of claims can be easily traced to previous medical disorders, this could be a significant fact. And it eliminates another possible reason for repudiating a claim. So choose the plan earlier rather than late
3)What does trip cancellation and interruption cover in travel insurance generally include? Trip cancellation or interruption can occur for numerous reasons, including illness, death of a family member, natural disasters, or instability in your destination country. If you do not purchase trip cancellation insurance and any of these situations occur, you run the risk of losing up to 100 percent of the money you've invested in your trip. This could be a substantial amount- especially with international travel. Be sure to read a policy in its entirety before making a purchase so you know what situations it covers and what actions you'll need to take to file a claim if your trip is canceled.
4)What does medical cover in travel insurance generally include? You may assume that your domestic health insurance provider covers you while you're abroad, but many health policies either do not cover international travel or only cover a portion of international medical expenses. Unpredictable scenarios are not uncommon when traveling abroad, and your health is worth the investment in travel insurance. Note that medicare does not cover international medical treatment. Check first with your current provider, and if you do not have adequate coverage, you will need to purchase a travel medical insurance plan.
5)What does medical evacuation cover in travel insurance generally include? If you are traveling to a remote area or a region without adequate medical facilities, it's important that you purchase medical evacuation insurance, or a travel medical policy with this coverage. Emergency transportation to a hospital that can provide you with the services you need for your particular illness or injury can cost a lot.
6)What does lost checked luggage cover in travel insurance generally include? Carrying valuables in your carry-on luggage can decrease the risk that they will be lost or stolen, but this is not always a viable option. If you are bringing valuable items with you in your luggage, such as musical instruments or jewelry, insuring your baggage will help protect you financially if something goes missing. Some travel medical policies offer these services already, so be sure to research all available benefits of a plan to avoid unnecessarily buying more than one insurance policy.
7)What does flight cancellation cover in travel insurance generally include? Flight cancellation insurance can cover the expenses that arise when a flight is unexpectedly canceled. Be sure that you are insuring every leg of your journey, since policies are often issued on a per-ticket basis.
8)What does visitor health insurance coverage in travel insurance generally include? Visitor health insurance, also known as visitor medical insurance, is a form of short-term travel medical insurance policy that visitors to any country purchase to obtain coverage protection for accidental injury or sickness or illness that occurs during their stay in the host country. Visitor health insurance is a form of travel medical insurance and offers health coverage for relatives or parents visiting any country, or for travel protection to visit any country for any reason, business or personal. This type of private health coverage for visitors is purchased as a short term health plan that provides medical coverage beyond national borders, and only for the duration of travel or stay outside home country. These visitor health insurance plans also provide medical evacuation and repatriation benefits as part of the covered features.
9)What is an Emergency Assistant Service Provider (EASP)? EASP means any organization or institution appointed by the Company for providing services to the Insured / Insured person for claim under insurable event.
10)What is the general validity period of travel insurance policy? The travel insurance policy is valid for the entire duration of the Insurance Period i.e. the period for which the premium has been paid or when the policyholder disembarks upon his/her return to India.
11)When does the travel insurance cover generally commence? The Insurance cover will be in effect from the day specified in the Policy Schedule or when the policyholder embarks on his/her journey overseas or on the date of the Contracted Departure, whichever is later.
12)Can travel insurance policy be extended? In case the policyholder’s stay overseas is extended for reasons beyond his/her control, the policy can be extended with the approval of the insurance company, once the required additional premium is collected.
13)If I do not need the travel insurance policy, can I get it cancelled? Yes. The travel insurance policy can be cancelled, only if the policyholder has not undertaken the journey as expected. To prove this, he/she has to submit a copy of his/her valid passport. A request for policy cancellation is accepted by the company for up to 14 days after the first date of commencement of the insurance policy as specified in the policy schedule. In the event of policy cancellation, a specified amount will be deducted from the refundable amount, as administration charges
14)What should I do if I meet with an accident overseas? In case of any emergency such as an accident, wherein you might require emergency medical care or assistance, you should contact the Alarm Centre or assistance centers set up for this specific purpose, describing the necessary details.
15)If I go abroad specifically for the purpose of availing medical treatment, would I be reimbursed for the medical expenses incurred? No. The travel insurance policy only covers you for accidents or illnesses which occurs unintentionally and unexpectedly whilst you are abroad.
16)Can I cancel my travel insurance policy midway? Yes, the policyholder can cancel the insurance policy if he/she wishes to do so.
17)Regarding delay of baggage claims, what documents should we submit while filing a claim? You will be required to submit a completely filled claims form with copies of baggage tags, property irregularity report obtained from the airlines, copies of communication with airline authorities certifying the baggage delay and original copy of bills/invoices/receipts of the purchases made during delay period.
18)What is curtailment coverage in travel insurance? Curtailment coverage is for any trip that is shortened or cancelled due to a valid reason. This feature helps you to save a lot of money on cancellation of flights or hotel accommodation
19)What are the different types of travel insurance available? Domestic Travel Insurance International Travel Insurance Single-Trip Travel Insurance Multi-Trip Travel Insurance Corporate Travel Insurance Family Travel Insurance Senior Citizen Travel Insurance Student Travel Insurance
20)What is a domestic travel insurance? People who do not have any health plan suffer from worst health outcomes, whereas those who have it get the quality care at the right time. A medical cover guarantees peace of mind and stable finances. Domestic travel insurance covers any emergency when travelling to different places within the country
21)Who must buy travel insurance? Any Indian citizen journeying within the country can buy a domestic travel insurance from any insurance company. The age of the insured person can vary from six months to 70 years. A minor, between age six months and five years shall be indemnified only along with their parent(s) or guardian. International travellers with passports of any other country other than India can avail a domestic travel insurance if they submit proofs of work permits or are touring here.
22)What are features and benefits of domestic travel insurance? 24*7 help available in case of lost luggage. Avail recommendations and expert opinions from of medical practitioners, healthcare centers and hospitals across India. Emergency situations like evacuation, deportation and repatriation of mortal will be taken care of. If you need specific itineraries for different cities, highlighting the main tourist gems, that will be provided as well. Most domestic travel insurance products offered by Indian insurers comes with an info service provider that will send you the most current and travel and health facts regarding your destination. Most insurance providers will not insist on any medical test to buy domestic travel insurance up to age 70. Reimbursement of medical costs sustained during hospitalisation wherever you are. You can request for round-the-clock medical assistance on your phone across the country.
23)What does domestic travel insurance covers? Accidental demise and PTD (24 hours) Accidental hospital money Benefit Additional staff assistance in case of emergency (Only for business tours) Coverage for accidental hospitalization Deportation of remains benefit For transportation of family Hotel accommodation rent if the trip is postponed due to delay in train/ plane arrival. Individual liability benefit Loss of Ticket - Rail/Flight following accident Medical evacuation advantage in case of emergency Ticket expenses if you miss the train or flight due to an accident
24)What are the exclusions in domestic travel insurance? Accidents caused under the influence of alcohol or drugs. Activities like caving or pot-holing, hunting or horse-riding, surfing, underwater sports, canoeing and rafting. All non-medical expenses. Being a part of any attempted crime, civil commotion, misdemeanor, or riot. Complications due to prolonged childbirth or pregnancy. If the insurance holder is travelling against the advice of a doctor, travelling for medical treatment or is diagnosed with a terminal illness. If you are a member of the Military or Armed Forces of any nation and has not specified that. Participation in adventure and winter sports like skydiving, parachuting, skiing, mountaineering, hang gliding, bungee jumping, scuba diving, or races on any motorized automobile. Suicide, self?wreaked harm, STDs, mental or nervous disorder (such as stress, depression, anxiety etc.) Working or learning to handle any aircraft, or carrying out duties as a crew member on any aircraft or scheduled Airline.
25)What in international travel insurance? In a foreign country, amidst new culture and people, in case you fall sick or meet with an accident, it may get difficult to bear unexpected medical expenses. The medical facilities and expenses at international destinations are very high as compared to India, meeting such contingency expenses may jeopardize your travel plan and impact the financial stability. To avoid such financial setbacks and take precaution beforehand, it is essential to opt for a travel insurance policy to safeguard yourself and your family from any such unforeseen expense
26)What are the features and benefits of international travel insurance? If you return from your trip early, you can get part of your premium refunded as per some policies. In case the trip has to be cancelled midway, your insurance carrier will compensate your losses as per the policy chosen. International cashless hospitalisation is another attractive feature. Unlike other insurance types, overseas travel insurance plans cater to clients ranging from infants to retirees and the plan covers diseases, emergency health care, hospitalizations and even take care of the same for your loved ones back home if you opt for it. You can get in touch with your insurer any time for travel related emergency or to report a claim. You can secure your luggage as well as other important papers such as passport you are carrying.
27)What does international travel insurance covers? Delay of luggage Delay of trip Emergency cash advance Emergency dental pain relief Hijack Loss of checked luggage Loss of passport and/ or other important documents Medical evacuation Medical expenditures Medical repatriation Personal accident (permanent/ temporary incapacitation or demise) Personal accountability You cannot put a price on peace of mind especially when you are out of the country. As you can insure your home and other belongings back home with an international travel insurance policy, peace of mind is guaranteed. You do not need to go in for a medical exam (only for those below age 85) and can avail it immediately.
28)What are the exclusions in international travel insurance? Complications related to pregnancy, miscarriage, abortion or childbirth. Delay of baggage when you return. If passport is confiscated or detained by customs, police or other authority figures. If the loss is not reported to police in 24 hours. If you travel against the advice of the doctor. Medical expenses once the policy is expired. Pre-existing medical condition and related complications. Risky employment, self-exposure to unnecessary danger (except when trying to save someone), being involved in any unlawful act. Suicide, attempted suicide or deliberately self-inflicted injury or illness, mental disorder (such as depression, stress, anxiety, nervousness etc), anxiety/stress/depression/nervousness having no underlying physical illness as a cause; venereal disease, inebriation, or drug abuse. The cost of eye glasses, contact lenses, hearing aids, crutches and other external appliances and/or devices. Travelling for medical purposes. Treatments other than Allopathy.
29)What are the points to remember when purchasing an international travel insurance for the next journey? One deciding factor is how much money you are willing to shell out for this. You may wish to spend in coverage for more complex multi-destination journeys like cruises or package trips, where one gaffe could toss the whole holiday into a nose-dive. Should you choose to buy a global travel insurance, you may do so just a day before your journey date. But do the necessary research and comparisons first and be prepared instead of doing it as an afterthought.
30)What type of travel coverage is generally recommended in international travel insurance? This is also completely dependent on individual needs. International travel insurance can be roughly divided on the basis of risk-factor and cancel-if-you-want aspects. Both has explicit reimbursement inclusions and covers for specific requirements. It doesn’t matter what you opt for, your coverage must help assuage any damages ensued due to unanticipated situations. Some plans also comes with extra perks such as emergency medical repatriation and lost luggage assistance. Do not make the mistake of grabbing the first plan you read about. Give yourself time to read through the fine print to spot the giant in the room even before it materializes.
31)What is a single-trip travel insurance policy? For people who do not travel frequently, a single trip travel insurance policy could prove to be very useful. Offered by all major insurance companies in India, a single trip travel insurance policy will offer cover against all major risks and will also help you cut down the premium costs. A single trip insurance policy essentially covers a single overseas trip. An international single trip insurance policy will last until you return home from your trip. All insurers have a limit on the number of days that count as a single trip. Single trip insurance policies are apt if you are making not more than one trip an year
32)What does single-trip travel insurance policy cover? Accidental death in a common carrier Burglary cover for contents of the home in India Delay of checked-in baggage Emergency cash advance in case of theft of money Emergency dental treatment costs Evacuation due to political risks and evacuation Expenses incurred for compassionate visits Fire cover for contents and structure of the home in India Hijack distress allowance In case of hospitalization, daily allowance will be provided. Loss of checked-in baggage Loss of passport and other travel documents Medical cover including repatriation and medical evacuation Missed flight connection and trip curtailment Personal liability cover Trip interruption and cancellation
33)What are the exclusions in single-trip policy? Claims arising due to pre-existing medical conditions Claims arising out of HIV, AIDS and other sexually transmitted diseases Injuries caused by sporting activities and adventure sports Loss of passport, travel documents and baggage which was unattended or unreported to the local police authorities is excluded Loss or damage due to radiation and nuclear weapons Mental disorder, depression and anxiety Naturopathy, homeopathic and ayurvedic treatments Venereal diseases
34)What is the maximum trip length for a single trip travel insurance policy? The maximum trip length differs based on the insurance provider. Do enquire about the maximum trip length with your insurance company before purchasing an international single-trip travel insurance policy.
35)Can business travellers purchase a single-trip travel insurance policy? Most of the single-trip travel insurance policies in the market are designed for both business and leisure travellers.
36)What are some of the conditions that are covered under medical coverage in single trip insurance policy? Most insurers cover the following costs - In-patient and out-patient medical treatment costs, radiotherapy, medical aid, x-ray, photo therapy, costs of diagnostic tests, costs of transportation to medical care facility and costs for emergency services.
37)Can I extend single trip travel insurance policy? Yes. A policyholder can extend his/her policy with the approval of the insurance company and by paying additional premium. However, the policy will be extended only during a single trip for a maximum period of 180 days. The entire Policy duration, including the period of extension, should not be more than 270 days.
38)What is the average duration of a single trip travel insurance policy? The minimum duration of a Single Trip policy is one day and the maximum duration is up to 180 days.
39)When can a policyholder avail automatic policy renewal facility in single trip travel insurance policy? Automatic renewal of policy is done even after the extension of a travel insurance policy, after prior approval for a period of not more than 7 days. This facility can be availed if there the insured person is held up due to a delay in the public transport services, which is beyond the control of the Insured person. This automatic extension will be done free of charge.
40)What is multi-trip travel insurance policy? With the rise of affordable vacations thanks to homestays and home swapping, there has been a rise in the number of vacations and trips individuals make over the course of a year. No longer is a trip just about the annual family vacation anymore. Short getaways and breaks are also gaining in popularity, with everyone from students to pensioners jet setting off on a whirlwind trip every once in a while. The number of people travelling for business has also seen a rise, contributing to a significant chunk of revenue for the travel industry. For frequent travellers, annual multi-trip travel insurance would be the ideal solution. Every trip taken in the year would be covered under the plan, a convenient alternative to taking out a travel insurance policy each time you travel.
41)What are the features and benefits of multi-trip insurance policy? Cost saving: Even if you travel only twice or three times a year, taking out a multi-trip travel insurance would be a better option as you would not have to pay for travel insurance twice or thrice. Costs incurred due to transportation of the insured’s mortal remains in the event of his/her untimely death while travelling. Expenses incurred during an emergency medical evacuation to India. If a trip is cancelled or postponed because of medical reasons, due to the airline, natural disasters or reasons arising for personal employment factors, the insurer would reimburse you expenses incurred. If you lose your money while travelling, insurers would provide you with access to funds. If your checked-in luggage is lost by the airline, you would be compensated the total cost. If your trip is delayed by more than 12 hours due to natural disasters, the airline, personal employment reasons or medical factors, you would be compensated for expenses you incur. In case of loss of passport, the insurer would cover the cost of a replacement. In the unfortunate incident that your plane is hijacked, you would receive compensation from the insurer for the distress caused to you. Insurance in the event your home is burgled while you are abroad on travel. Some insurers allow you to club your family’s travel insurance under a comprehensive plan, thereby reducing the cost of insurance premiums. The insurer would compensate in the event of death or permanent disability arising out of an accident while travelling aboard a common carrier. There are chances you could fall ill while on your trip, resulting in you needing to visit a doctor or a hospital. Medical costs abroad are prohibitively expensive, and your entire budget could be spent on paying medical bills. With travel insurance, certain basic medical expenses are covered, so you would not have to pay a hefty amount to be treated. Unlimited number of trips: multi-trip insurance would provide you will coverage for an unlimited number of trips in the given year. You would be reimbursed the expenses you incur if you miss a connecting flight as a result of a delay of more than 3 hours.
42)What are the exclusions in multi-trip travel insurance policy? Any lost property that has not been reported to the local police. Expenses due to suicide attempts or self-inflicted injuries, mental disorders, HIV/AIDS, anxiety or depression. Expenses incurred as a result of alcohol or drug abuse Expenses incurred due to participation in potentially harmful or hazardous activities. Expenses incurred when travelling to receive medical treatment. Nuclear threats or a state of war in the country being visited. Partial loss or damage to checked-in luggage. Pre-existing medical conditions and claims arising out of them are not covered. Sport activities Travelling against medical advice Treatments like naturopathy, Ayurveda or homeopathic treatments.
43)What is the eligibility criteria for multi-trip travel insurance policy? The eligibility criteria for multi-trip travel insurance varies from one insurance company to the other. Travellers can choose an annual multi-trip travel insurance policy if they are between the ages of 3 months to 70 years. However the eligibility differs for certain countries. For example, Schengen countries allow a multi-trip travel only for travellers up to 50 years of age. Those above 50 years of age who wish to travel to those countries would have to purchase a single-trip travel insurance policy.
44)What medical emergencies are covered under the medical claims in multi-trip insurance policy? Generally, in-patient and out-patient services are covered under the travel insurance policy, if they cannot be deferred until a return to India. Any treatment recommended by the doctor at the hospital such as x rays, tests, and other diagnostic tests are covered. Ambulance and transportation to the hospital charges will be covered as well.
45)What are the medical exclusions under multi-trip travel insurance policy? Cancer treatment costs, unless they are emergency measures necessary to save the policy holder’s life or relieve pain. Cosmetic or plastic surgery expenses. Expenses related to recuperation at a resort or spa Pre-existing medical conditions Pregnancy or childbirth related expenses. Treatment that can be delayed until the policyholder is back in India. This would be decided by the physician and the insurance company.
46)Can a claim be filed under multi-trip travel insurance policy, once the policy holder returns to India? Yes, you can also file a claim on returning to India, provided it is filed within 30 days of your return or the end of the particular trip under your multi-trip insurance policy.
47)If I extend my trip, would I be able to extend my multi-trip travel insurance? Yes, you can extend your insurance in the event of your trip being extended. You will be required to submit an “Extension Form” a few days prior to the scheduled end of the particular trip and your insurance will be extended for the specified period.
48)What is student travel insurance policy? If you aspire to study abroad, there are various things that you need to watch out for rather than just your travel itinerary, part-time job options, accommodation, and so on. You will be in a strange new place with limited resources and if something unforeseen were to happen, you should be fully prepared for it. Hospitalization and other medical expenses would weigh heavily on your finances if you haven’t got a student travel insurance policy. A student travel insurance policy assists a student who is studying abroad, to avail medical and non-medical insurance coverage throughout his/her stay in the foreign country with unique features like auto-renewal and policy extension facilities. This coverage not just helps a student to pay for hospitalization and medical bills, but also assists in repatriation, visits from family, and so on
49)What are the features and benefits of student travel insurance policy? Covers various expenses like: loss of baggage, hospitalization, family visit, accident to sponsor, and other incidental expenses. Comprehensive coverage facilities such as: study interruption, two-way flight coverage for compassionate visit from family, bail bonds, and sponsor protection
50)What does student travel insurance policy cover? Accidental injury during the trip overseas Bail amount is paid to the concerned authority, if the policyholder is arrested or detained by officials for a bailable offence, whilst abroad. Compensation for personal accident which causes death or permanent disability, while riding as a passenger in a common carrier whilst abroad. Dental treatment and related expenses Expenses related to emergency medical evacuation of the insured to India In case of an untimely demise of the insured, the transport expenses arising out of the transfer of the insured’s mortal remains back home or for burial abroad, is covered. In case the sponsor paying the insured student’s fee passes away due to an injury, his/her tuition fees is reimbursed. Loss of baggage/personal effects by a common carrier Loss of passport and related expenses incurred on replacement of the passport/ for duplicate passport. Medical expenses arising out of medical emergencies whilst abroad, such as any sudden injury, illness or death Return ticket fare is reimbursed for a family member visiting the insured, if he/she has been hospitalised for 7 days or more. The paid semester fee is reimbursed, if the policy holder’s education is interrupted due to a medical emergency.
51)What are the exclusions in student travel insurance policy? • Any loss of arising out of the policyholder’s actual or attempted commission of, or willful participation in, an illegal act or violation or attempted violation of the law or his/her resistance to arrest. Any loss or injury arising out of war, invasion, revolution, insurrection, act of foreign enemy, rebellion, hostilities (whether war be declared or not), use of military power or usurpation of government or mutiny. Any loss that results directly or indirectly by childbirth or from pregnancy, and/or is contributed, aggravated or prolonged by the same. Any pre-existing condition or any complication arising from it. Being under the influence of alcohol, drugs or other narcotics/intoxicants/hallucinogens unless prescribed by a registered physician and taken as instructed. Congenital malformations or any complications arising therein If the insured person is travelling against the advice of a physician; or receiving or on a waiting list for receiving specified medical treatment; or is travelling for the purpose of obtaining treatment; or has received a terminal prognosis for a medical condition Loss or injury due to exposure to any toxic, radioactive, explosive or other dangerous nuclear equipment or any part of such equipment Loss or injury due to ionising radiation or contamination through exposure to radioactivity from any nuclear fuel or nuclear waste. Loss, injury, damage or legal expenses sustained directly or indirectly by a terrorist activity or nuclear, chemical or biological weapons. Loss, injury, damage or legal liability arising directly or indirectly from travel in, to, or through restricted countries Mental disorder or nervous disorder, stress, anxiety or depression Operating or learning how to operate an aircraft, or being a member of the crew on an aircraft and performing related duties. Participation in an actual or attempted crime, felony, misdemeanor, riot or civil commotion Participation in professional sports, or any bodily contact sport or other hazardous/ potentially dangerous sport for which the policyholder is untrained. This exclusion does not apply to injuries that are a result of inter-collegiate sports. Participation in skydiving/parachuting, winter sports, hang gliding, scuba diving, bungee jumping, mountain climbing, caving or potholing, riding in or driving in a motorized vehicle or bicycle as a part of a race or rally, hunting or equestrian activities, rafting or canoeing involving white water rapids, underwater activity such as skin diving, yachting or boating outside coastal waters. Serving in any branch of the military or armed forces of any country, whether in peace or war, in which case the insurance company will apply the pro rata premium for the duration of service. Sexually transmitted conditions, such as human immunodeficiency virus (HIV) infection or acquired immune deficiency syndrome (AIDS). Suicide or attempted suicide as well as intentionally self-inflicted injury or illness. The insured person riding a motorcycle or any other motorized two wheeler as a mode of transport as driver or as passenger. Willing exposure to needless peril, except in an attempt to save the life of another human.
52)What is the eligibility of students travel insurance? Each student can have only one travel insurance policy for the specified period. Generally, any individual who is between sixteen and thirty-five years of age can apply. He/she should be enrolled for a course, in a registered educational institution of higher learning, and should be attending classes on a full-time basis, in a foreign country.
53)How do I extend the policy period of student travel insurance policy? During the risk period, the extension policy can be availed only once. The extension premium needs to be paid before the actual extension comes into play, and the entire policy period (inclusive of the extension) cannot be exceeding over 2 years. The insured needs to provide a declaration of his/her good health. The same needs to be certified by a physician. The insured should not have made any claims during the initial policy period. The original policy still needs to be valid, as per the policy date. The sum insured will be enhanced.
54)What is the corporate travel insurance plans? A corporate travel insurance plan can be procured by corporate employers who intend to provide insurance protection to their employees while they are abroad. Corporate travel insurance plan is a comprehensive package which provides complete medical and health cover to the international business traveller. Corporate travel insurance plan covers your business trips abroad. Corporate plans can be customised according to the requirements of the organisation. All plans offer adequate medical and travel-related cover for policyholders and are available as multi-trip and single round trip policies.
55)What are the features and benefits of corporate travel insurance plan? Corporate travel insurance plan provides you a protection cover that can save you from all these expenses. In addition, taking this plan can give you and your employees a peace of mind which is necessary to make a business trip fruitful. With all these benefits, you and your employees can travel without worrying about the uncertainties associated with travelling. With just one policy, you can give a protection shield to all your employees and economic support to yourself and your company. There are multiple corporate travel insurance plans available in the market and all of them provide some common covers for: Accident, liability, and legal cover in case of any trouble in the trip Extra travel expenses in case you miss connections during your journey back home Golf clubs and other sports equipment Medical treatment & related transportation costs Money and travel documents Personal belongings & business equipments like laptop and tablet. Reimbursement of cancelled flights’ expenses
56)What does overseas corporate travel insurance cover? A medical emergency situation caused due to an accident or illness while travelling for a business purpose. Being robbed of important possessions. Benefits for accidental demise, injury or disability (temporary or permanent) caused due to it. Hijack distress If a minor has to be returned to his/ her home country. If the insured needs to be evacuated immediately. If you lose or damage your luggage, personal belongings or essential travel papers. If you miss your connection flight due to goof up of schedules. If your trip is delayed owing to bad weather. In case the baggage is delayed for more than 12 hours after checking-in, then essential items such as toiletries, clothes etc. will be replaced. . In case the whole trip is cancelled or interrupted due to no fault of yours. International funeral expenditures. Normally, the insurance providers offer cover against pregnancy related expenditures, if the trip happens within the first three months. But the same may not be offered for the second and the third trimester and can vary accordingly. Repatriation of mortal remains.
57)What are the exclusions in corporate travel insurance plan? Insurance carriers that do not offer cover for a previous health condition in any domain abroad. Every policy comes with a specific period attached to it. If the incident due to which you are making a claim happened in the said time frame, there is nothing to fear. Else it is claim rejection. Drunk driving, getting into a spot of fix with the law etc. in such a state will never be covered If you are declared perfectly fit to voyage after getting an OK from the doctor that the condition is under control, then you do have the right to get expenses due to any sudden medical emergency reimbursed. In case you are already suffering from a condition preceding your departure (like Asthma) and are already diagnosed with it, your insurer will refuse to alleviate any related medical bill incurred overseas. Suicide, attempt to suicide or self-inflicted injuries – Insurance companies show no mercy if there is slightest evidence towards any or more of these three when cross checking a customer’s claim. You know a war is going on in the place or it is rife with political unrest. Most insurance firms will flatly refuse covers for any kind of harm or injury because you chose to go to an imperilled war zone. Taking part in heavy-risky activities and extreme sports such as bike stunts, skydiving, aqua sports and more are certainly out of the list unless you are willing to pay additional premium for it.
58)What are the assistance services provided by corporate travel insurance? Global Travel Assistance: Assistance with almost every travel emergency or request for general travel information, including lost, robbed or delayed luggage; substituting lost passport or other essential travel papers; urgent fund transactions; pre-trip travel guidance; immunization info; and more. Concierge Assistance: Whatever you require no matter where or when, , whenever, wherever you need it, you can call on your own personal assistant to help. Services include tee time reservations, restaurant referrals and reservations, wireless device assistance, sporting or theater tickets, and more. Corporate Assistant: You'll also have access to an array of services to help make short work of your business obligations, so you can enjoy your vacation. Identity Theft: If your identity is appropriated (cards, certificates etc.) during your business tour, one of the partner travel counselors of your insurance firm will help you emergency travel counselors will assist in getting in touch with your credit card issuers, monitoring your credit statements and doing everything possible to help you reinstate all the cards. Personal Security Assistance: Assistance is delivered to help ensure your safety as well as your personal details while on the move. Services entail deportation assistance, exigent message heads-up and online security web info. Travel Medical Assistance: A host of services obtainable for emergency medical requirements, including replacement or refilling of medicines, doctors referrals, medical repatriation and more.
59)What is a group travel insurance? A group travel insurance plan should be considered if you are a group of five or more people traveling outside your home country. Group travel insurance is taken as a comprehensive cover for people belonging to a group travelling to same/similar destination, the type of cover may differ as per the policy terms. Group travel insurance will cover you for everything you would usually get as an individual but means you can often save time and money including everybody on the same policy.
60)What does group travel insurance policy cover? Cover for cancellation of trip such as flight cancellation Cover for loss of key documents such as passport. Loss of baggage and cash Hijack disaster and other calamities due to natural disasters Emergency Medical deportation Pay trip interruption expenses Emergency medical cost Emergency accidental cost
61)What are the exclusions in group travel insurance policy? Baggage delayed for less than 24 hours Cancellation via tour operator Divorce as a reason to cancel trip Loss or damage to keys, credit cards, documents, tickets and so on Maternity and childbirth Mental disorder Pre-existing illness Self-inflicted injuries Sports injuries War, strikes, riots
62)What is family travel insurance policy? When travelling overseas with family, it’s important to prepare against medical emergencies and travel-related challenges beforehand. Family Travel Insurance is your safety net which makes sure that problems in your travels do not ruin your much-deserved break. It is a single policy which takes care of any problem that may be faced by you and your family members while travelling. Unlike other individual travel insurance schemes, the coverage amount provided by international holiday insurance is divided equally by all the family members. Also the process of claim disbursement is simple and involves minimal paperwork.
63)What does family travel insurance cover? Compensation for death/permanent disability caused by an accident while travelling in a common carrier. Baggage loss/delay, losing travel documents etc. will be smoother with a good family travel insurance in place. The cost of getting a new passport will be covered. The expenses due to delayed/cancelled flight is also covered, as is the cost of missing a connecting flight because of it. If you happen to lose your money while travelling, you will be offered emergency funds by most insurance companies. If your house back home gets robbed while you are travelling abroad, this scheme will cover the expenses incurred. In the unlikely event of a hijack also you will be given allowance. It is not only an annoying but an expensive affair if your trip gets delayed. Family Travel Insurance makes sure that all such expenses are covered. Majority of insurers now offer other facilities like cashless claims, minimal documentation, online renewal, international assistance and competitive premium rates for family travel insurance. Medical attention in many countries can be extremely expensive without insurance. All the expenses related to medical emergencies of any of the family members will be covered under this one scheme. Everything from illnesses, bodily injury, hospitalization, the expense of a family member travelling to visit an ailing family member, emergency medical evacuation back to India, the expense of transporting the mortal remains of an insured family member or the burial overseas etc. will be covered with policy. You can opt for additional coverage (For medical evacuation, repatriation, personal accident etc.) to feel even safer.
64)What are the exclusions in family travel insurance plan? Acts of war/terrorism Damage/partial loss for checked-in baggage. Effects of drugs/alcohol use Involvement in criminal acts as well as injuries caused by participation in hazardous activities Not adhering to medical advice Pre-existing conditions and related complications including mental disorders, HIV/AIDs and so on. Suicide attempts/self-inflicted injuries Theft/loss of baggage that is not reported to local police authorities
65)What is Schengen travel insurance? Individuals travelling to the Schengen area for a maximum period of 90 days have to compulsorily avail a Schengen travel insurance policy or a health insurance plan along with the Schengen Visa. Schengen travel insurance policies generally include benefits like emergency medical expenses, repatriation, 24/7 assistance, accidental bodily injury, death or permanent disability, third party liability, extended protection for the family, etc. The countries included under Schengen travel are Austria, Czech Republic, Belgium, Denmark, Finland, Estonia, Germany, France, Iceland, Greece, Latvia, Hungary, Italy, Lithuania, Liechtenstein, Luxembourg, Malta, Netherlands, Norway, Portugal, Poland, Slovakia, Spain, Slovenia, Switzerland and Sweden.
66)What is Asia travel insurance? Travel insurance policies specific to Asian countries offer travellers comprehensive protection while visiting most Asian and Southeast Asian countries, excepting a few. The exclusions will be specified in the policy issued by the insurer. Benefits included under such policies are emergency medical cover, accidental bodily injury, third party liability, emergency financial assistance, loss of passport, distress allowance, etc.
67)What is extension of travel insurance plans? Travel insurance policy holders can extend their plans for a certain period of time if their stay in the foreign destination is prolonged. Different insurers offer specific extension periods depending on the travel destination and the type of traveller.
68)What is a cruise travel insurance policy? It is a generally known fact that though travelling by cruise is comparatively safer than other modes of travel yet cruise travel insurance is one of the most largely purchased forms of travel insurance, across the world. The primary reasons for this can be attributed to the fact that cruises are not only quite expensive, but also come along with dangers such as drowning, sea-sickness, and are heavily dependent on the weather. If you are going for a cruise holiday, it is essential that you buy a comprehensive cruise travel insurance policy that protects you from all the possible dangers.
69)What does cruise travel insurance cover? Cancellation coverage which includes reimbursement for your pre-paid travel expenses if you have to cancel your trip (prior to departure) due to any of the reasons mentioned in the policy schedule. Coverage against evacuation, where the ship needs to be evacuated, and the cover arranges and pays for medically necessary evacuations or for the repatriation of a traveler’s remains. Medical coverage for emergency medical and dental care (in certain cases) in the case of a sudden illness or injury on your cruise. Missed connection coverage due to extreme climatic conditions while sailing, unplanned labour strikes, and overbooking errors. Trip interruption coverage which includes reimbursement for pre-paid travel expenses if you have to end or curtail your trip and return home
70)What is senior citizens travel insurance policy? Rise in mobility of professionals across borders also results in a consequent increase of senior citizens crossing borders to meet their loved ones. So before your parents or relatives come and meet you abroad, make sure you’ve taken the right seniors insurance to secure them against any sort of difficulties. Senior citizen travel plans offer coverage from 71 years to about 80 years of age. What makes senior’s insurance plans (or pension insurance) different from regular travel insurance policies. Is that there is no cap on the entry age of the insured person, which is usually near 70 years of age.
71)What are the features and benefits of senior citizen travel policy? No medical check-up upto certain age Coverage of amount spent on hospitalisation, other incidental expenses, loss of baggage. Easy access to the company officials is provided through in-house international toll-free numbers and fax numbers. Free assistance to customers to address their queries related to their trip/travel. Quick disbursal of claims. Cashless medical services are available around the world You have the option to extend your policy online. Travel Elite plan covers you against loss resulting from cancellation of trip, reducing the duration of the trip, theft or burglary at your home while you have gone for a vacation, and such like. Policy can be extended online in case of any trip extension plans. Beyond stipulated time, just pay only for number of days extended Political risk and catastrophe evacuation - get paid for cost of insured’s return to the country of residence No sub-limits plans are available for Schengen countries Political risk and catastrophe evacuation – get paid for cost of insured’s return to the country of Residence
72)What are does senior citizen travel insurance policy cover? Baggage loss Dental treatment Emergency medical expenses Flight cancelation, delay, or missed flights Home burglary cover. Medical evacuation expenses Personal liability and financial emergency assistance Pre-existing illness Trip cancellation, interruption or delay
73)What are the exclusions in senior citizen travel insurance policy? Any form of treatment/alternative form of medicine except Allopathy. Any method of unproven treatment. Expenses incurred for medical purposes after the insurance policy has expired. Experimental and unproven treatment. If his/her passport is lost or damaged due to confiscation or detention by authorities like customs, police. If the policyholder had been suffering from a medical condition before buying the policy and if a medical complication arises due to the same, during the policy period. If the policyholder inflicts himself with injury, attempts suicide, suffers from any mental disorder like stress, anxiety, depression, etc., is a victim of alcoholism or drug abuse. In case of the travel destination being India, and the baggage being delayed.

Term Life
1)What is life insurance? Life Insurance is related to contracts of insurance on human life in which the life insurance policy offers compensation (sum assured) to the insured or dependents in the event of maturity of policy or on occurrence of a risk covered such as death, permanent disability of the insured. The reimbursement amount is pre-decided based on the terms of the policy.
2)Why is life insurance useful? Life Insurance is useful to provide your family with financial security in case circumstance throws you into a situation where you cannot earn or in the case of your premature demise. It helps keep your family in a position to enjoy financial security even after your demise. Life insurance policies also offer you the ability to save, which helps provide financial stability.
3)Is life insurance necessary? Life Insurance is a smart investment to make, especially if you have a dependent spouse and children. It offers your family the benefit of financial support even after your death. In addition to this, it offers a number of advantages and provides a lot of flexibility on your investment. For example, you can add a critical illness rider to cover the cost of expensive for surgeries and operations; you can withdraw a part of your maturity benefit in case of an emergency or for your child's education or marriage, etc. Life Insurance policies come with a lot of flexibility.
4)How do I decide on the amount of life insurance I need? The amount that you receive on maturity depends on the amount of premium you pay. The maturity benefit you need, depends on your standard of living, income, spending habits, etc. You should aim to receive a maturity amount equal to 7 to 10 times your annual salary.
5)How much does life insurance cost? The cost of life insurance depends on the type of policy you take, the amount of premium you pay, the sum insured, your age and the benefits you expect to receive when your policy matures.
6)When should I get life insurance? Buy life insurance as soon as you determine that it makes sense for you or for your family. Waiting to buy life insurance is costly, as it becomes more expensive as you age. It is also easier to qualify for life insurance when you are young and have no health complications. Life insurance can help to prevent the loss of your income and your debt accumulation from being passed on to your family as a financial burden after your passing Your life insurance policy coverage should reflect these and other foreseeable financial obligations.
7)What are the advantages of life insurance? Taking care of your family. Whether it is for replacing lost income, making sure your spouse get the much-needed financial security, or paying for your child's education, life insurance can help surviving dependents. Any outstanding debt (a home loan, auto loan, personal loan, or a loan on credit cards) will be taken care of if you happen to buy the right life insurance policy. It would help you achieve your long-term goals such as buying a home or planning your retirement. It also provides you with diverse investment options that come along with different types of policies. With a life insurance plan, you can ensure you have a regular stream of income every month. You could save taxes with insurance policies irrespective of what plan you buy. The premium you pay on an insurance policy is eligible for tax benefit under Section 80C, and for tax-free proceeds on death/maturity under Section 10 (D) of the Income Tax Act, 1961.
8)What are the important aspects of life insurance? Policies available with bonus or without bonus Premium can be paid in monthly, quarterly, half yearly, yearly instalments Death due to accidents can be covered for additional sum assured Additional cover for major diseases available Exclusive health insurance policies available Guaranteed bonus policies available Policies available exclusively for women and children Policies available for limited period premium payment and risk for longer policy period Policy can be surrendered after three years (ULIP’s after 5 years) Share Market linked policies ULIP’s available Loans are available on policies Lapsed policies can be revived Nomination and assignment can be done
9)What are the different types of life insurance policies? Term insurance plans Whole life plans Endowment assurance plans Unit linked plans Money back plans Children’s plans Pension plans Women’s plans Mortgage redemption plans Plans for handicapped dependents
10)What type of policy should I buy? It is impossible to say, because the kind of coverage that is right for you depends on your situations and financial goals. However, term provides the greatest coverage for the lowest initial premium and is a great solution for people with temporary needs or a limited budget. Permanent insurance may make more sense if you anticipate a need for lifelong protection, or if the option of accumulating tax-deferred cash values is attractive to you. Also, it does not have to be one or the other. Often, a combination of term and permanent insurance is the right answer.
11)What is term insurance? Term insurance is a pure protection plan. It is purely a life cover providing death benefit coverage. It covers the life insured for a period (term). The proposer decides the term. It can be taken for a period of 5 years to upto 40 years. However, the term is also guided by the present age of the proposer.
12)How much term insurance would I require? If you are the sole earner in your family, you will need adequate coverage to replace the income in case of your death. Such coverage will be adequate to financially secure your family for at least ten years in case of your demise. You must consider your current and future expenses while calculating the insurance coverage you need. Some of these include your mortgage payment, other debt obligations, marriage and educational expenses of children, and monthly household expenses. You also need to ensure the rate of inflation is accounted for to determine your term insurance coverage. Choose a policy keeping in mind your current financial situation. The premiums should be affordable.
13)What is a regular term insurance policy? This plan is a no-frills insurance plan that provides coverage against a specific set of risks on payment of a pre-decided premium amount. These plans offer no benefits upon maturity. Premium payments can be made periodically or they can be paid at once (single pay). The options for insurance cover can go as high as the insurer is willing to underwrite and the policy tenures can be as high as 20 years. When the policy matures, the insurance cover ceases, as does the need to pay premiums for such a cover. Regular term insurance also comes with low premiums and high sum assured. This ensures that the policyholder can receive maximum benefits from the plan in a cost-effective manner.
14)What is group term insurance policy? They are offered to a group of individuals by an employing organization, association, or trusts and societies. It provides coverage to each and every member insured under the plan. It is also less expensive compared to an individual term insurance plan. Group term plans offer more or less the same benefits as individual plans, however, the only disadvantage is that the coverage expires once the employment or membership ends. These plans can be taken by any group of people or companies for their employees but can come with one essential clause or mandate set by the insurer where the policy will require a minimum number of people participating in it.
15)What is decreasing term plans? In this type of policy, the sum assured on death as well as the premium decreases at a certain rate throughout the policy term. Such plans are generally offered by financial institutions to insure the property held as collateral against the loan offered. It is an additional safety component which ensures that the bank will get back the amount released as loan, in case of the worst scenario. The duration of the policy term can vary between 1 and 30 years. The essence of decreasing term insurance is that a person’s requirement for high insurance coverage decreases with age, as certain liabilities do not exist beyond a point. Decreasing term insurance plans are not suitable for individuals who have no other form of life coverage.
16)What is increasing term plans? Under increasing term insurance plans, the insurance coverage increases at specified durations when the policy is in full force. It evaluates risks on par with the rising costs at any given time in the future and compensates accordingly. The cover usually keeps increasing till the time it attains a value which is 1.5 times higher than the original cover.
17)What is a convertible term insurance policy? A convertible term plan allows the policyholder to convert his/her policy into a permanent one during the policy tenure. Some insurers provide this as an additional benefit rider while others offer the same as a standalone plan. As far as the terms and conditions have been met, converting a term life policy into a permanent policy should not be a difficult process.
18)What are joint term insurance plans? They are those schemes which allow the person insured to cover his/her spouse under the same policy. It is a comprehensive financial protection solution with multiple benefits for couples. It basically ensures that the family equilibrium remains intact during hardships, or in the worst case, during the absence of one of the two or both. These policies are well suited for married couples with dependent children
19)What are Term Return of Premium (TROP)? These plans are standard term life insurance plans with a slight variation in the method of providing survival benefits. On survival, policyholders are returned the total amount of premiums paid by them during the policy tenure, excluding tax. Such a method ensures that the money spent on the policy is returned to you after a specific interval.
20)What is a term insurance rider? A term rider is an add-on benefit you can attach to your existing term insurance policy at a nominal rate. A term rider offers you additional benefits over and above the pre-decided sum assured of your policy, in case a scenario that is covered by the rider occurs. The different types of rider are critical illness rider, disability rider, and accidental death rider.
21)What are the exclusions in term insurance plan? If the policyholder’s death was brought about by or as a result of consumption of alcohol or narcotic substances, the insurance company is not liable to compensate dependents. Accidental death brought on by the actions of the policyholder (such as extreme sports etc.) are not covered as these are viewed as self-imposed risks by the policyholder. Suicide is an exclusion in all term insurance policies. Insurers will not pay dependents in the event of the policyholder committing suicide within a year of purchasing the policy. In the case of group insurance, suicide will not be liable for compensation as well.
22)Can I alter the duration of the coverage after the policy has been issued? No, it is not possible to change the duration of the coverage after the policy has been issued. However, some policies allow for extensions in the coverage period.
23)What is the maximum tenure for a term insurance plan? The maximum tenure for a term insurance plan depends on the insurance company and the type of plan opted for. The maximum tenure available is 40 years.
24)Is surrender value a part of term insurance plans? Surrender value is essentially the amount of money which an insured policyholder is entitled to receive if they discontinue their life insurance plan before it expires. Certain charges are usually deducted from the final surrender value that is payable to the insured. In case of term plans, the concept of surrender value is usually applicable for term plans with return of premium (trop). Also, term insurance plans which allow single premium payment or limited premium payment options also may offer surrender value. Regular pay term plans will not offer surrender value.
25)Can I switch my term insurance plan to another insurance provider during the policy term? No, you cannot switch your term insurance policy to another provider during the policy term.
26)How do I cancel my term insurance policy? Cancelling your insurance policy can be done by notifying the insurer within 15 days of the policy being issued.
27)Can the dependent/nominee re-apply for a claim if it was rejected once? Yes, the nominee/dependent can re-apply for a claim if it was rejected before, and can approach the insurer’s grievance redressal cell if necessary.
28)Can one insure their children/spouse instead of themselves? The way term plans work is to help an individual insure themselves under an individual plan. If they want to insure their spouse or children, they will have to buy individual term plans in their spouse or child’s name.
29)How do I renew my term insurance plan? If your term plan is nearing its expiry, ensure to renew it on time, so you are not left uncovered. The process of renewal is very simple and in most cases, can be carried out online on the insurer’s website. The first step of the process is to review your policy and find out if the existing coverage is adequate going forward. Make changes in coverage accordingly. Second step is to provide your policy details. This can be done on the insurer’s website where you will need to provide your policy number, date of birth, name, etc. The final step is to make the payment for the policy, which can also be done online.
30)Can I get loan on term insurance plans? No, policyholders are not eligible for loans as the policy doesn’t come with maturity benefits nor does it attain surrender value.
31)What is term insurance with monthly income? In such cases, the sum assured is decided on the policyholder’s monthly income after taxes. The death benefit paid out is 12 times the monthly income, inflated at 5% annually throughout the term of the policy.
32)What is whole life insurance? This policy provides life-long coverage. It gets you cover as long as you are alive. The key feature is that it is for whole life and in case of death of the life insured, the corpus is paid to the beneficiary. They are intended to protect your family as long as you continue paying premiums.
33)What is non-participating whole life insurance policy? A non-participating whole life policy has a level premium and face amount during your entire life. The advantages of such a policy are its fixed costs and relatively low out-of-pocket premium payments. Since the policy is non-participating it does not pay you any dividends.
34)What is participating whole life insurance? The defining feature of a participating whole life policy is that it pays dividends. Payment of dividends essentially indicates that the excess earnings which the company has accumulated via investments, savings from expenses and favorable mortality of the organization. There is no guarantee that policy holders will receive dividends. However, if dividends are paid, they will be paid in the form of cash which will be utilized to bring down the premium payment amount or will be allowed to accumulate and will attract interest at a specified rate. The dividends can also be used to for purchasing paid-up additional insurance to enhance the face amount of coverage provided.
35)What is single premium whole life insurance? Under the single premium whole life insurance policy, individuals have to make the premium payment in a single lump sum. The payment must be made at the issue of the policy, making the policy fully paid up, with no requirements of any further premium payments. The single lump sum premium payment will provide the policy with loan value and immediate cash value, both of which could be significant in amount, depending on the amount of the lump sum premium. Given the sizeable amount of the lump sum premium payment, the Single Premium Whole Life policy is considered more as an investment insurance product.
36)What is limited payment whole life insurance? Under the Limited Payment Whole Life Insurance, policyholders will be required to pay premiums for a limited period of time but will receive lifetime protection. However, since the premiums are to be paid for a shorter period of time, the premium amount will be relatively higher than the premium amount payable for an ordinary whole life plan. Under this kind of plan, customers have to pay premiums for a specified number of years – 10 years, 20 years, and so on.
37)What is level premium whole life insurance? As the name suggests, level premium whole life insurance features level premium payments which must be paid till the insured is alive. The premiums collected in the early stages of this policy are sufficient to pay for the insurance protection costs. The surplus funds, inclusive of the interest earnings will contribute towards any shortfalls in premiums at a later stage when the annual premium payments may not be enough to cover the insurance costs.
38)What is indeterminate premium whole life insurance? The special feature of an indeterminate premium whole life policy, which is otherwise similar to an ordinary whole life insurance policy, is that is allows policyholders the option of adjusting their premiums. Based on its estimate of its current earnings, cost of expense and mortality, the insurer will charge policyholders a "current" premium. In case there are any changes in the aforementioned estimates, the insurer will adjust the premium amount accordingly which the policyholder will then be charged.
39)Can I borrow against my whole life insurance policy? A whole life insurance policy not only provides cash value but also has no date of expiry, which enables the policy holder to easily borrow against their policy. For more details regarding borrowing against your whole life insurance policy, you can contact your insurer who can guide you better.
40)What is death benefit in a whole life insurance policy? Death benefit is the annuity or pension which is paid to a beneficiary after the passing away of the life insured. The same concept is followed in whole life insurance policies where the beneficiary gets the amount of the life insurance policy as lump sum or through regular payments following the insured’s death.
41)Is whole life insurance an option for senior citizens? Yes, whole life insurance is a viable option for senior citizens as this policy provides comprehensive cover and does not have any age limit attached under eligibility. Following the death of the insured, the beneficiary named in the policy will receive the payout / death benefit. Whole life insurance policies offer a number of useful benefits like tax exemptions, growth of cash value, permanent protection, uniform premium payments, cash access via loans and other withdrawal options.
42)What is endowment plan? Endowment plans are not pure insurance plans. They differ from other insurance plans, as these plans involve investment part. In endowment plans, there is return of sum assured at maturity. These plans have both death and survival benefit features. However, the premiums are comparatively higher than the pure death benefit insurance plans.
43)What are with profit and without profit in endowment policy? Endowment policies without profit the nominee receives the sum insured only upon the death of the insured. In endowment policies with profit the nominee receives the sum assured plus bonus for the number of years the policy was in force in case of the policy holder’s death. In case of survival upto the policy term the insured receives sum assured plus bonus for the term policy. These policies participate in the profits of the insurance company.
44)What is full endowment policy? Under this policy, the basic amount ensured to be provided will be equal to the death benefit, right from the start of the policy. Depending on the speculated market-based appreciation, the final pay out provided is comparatively higher.
45)What is unit linked endowment policy? Under unit inked policies, the insurance premiums are directed into multiple units held under a specific investment fund which can be chosen by the policyholders.
46)What is low cost endowment policy? This endowment plan has been introduced with the intention of allowing individuals to accumulate the funds which have to be paid after a specified time period, usually mortgage.
47)What is the process for cancelling an endowment policy? The general procedure to cancel an Endowment policy requires individuals to visit their insurance provider along with the necessary documents like the original policy document, ID proof, surrender / cancellation form and a cancelled cheque for the purpose of fund transfer. While the cancellation procedure may differ with each insurer, hence it is wiser to contact your insurer to get to know the procedure.
48)What happens when I surrender my endowment policy? In the event that you are not satisfied with the endowment policy or it is not fulfilling your requirements, you are under no obligation to continue with it. Policy holders have the option of exiting their policy before its maturity term and surrendering it. If a policy holder decides to withdraw his Endowment policy before the maturity period is over, it is called surrendering the policy. If an individual surrenders his policy, then the cover provided by the policy, along with the added benefits will cease to exist. For instance, LIC allows surrender of endowment policies only after the premiums for 3 full policy terms have been paid. In case the policy holder exits and surrenders the policy before this (3 term) time period, then they will not receive any payout.
49)What is meant by a paid-up endowment policy? If a policyholder has paid premiums on their policy for a minimum of 3 years, they have the option of converting their endowment life policy to a paid up endowment policy. In case you are not satisfied with the endowment policy which you’ve taken but do not wish to surrender your policy, you can choose to not pay the premiums any longer. While your policy will continue till it reaches maturity, the sum assured amount will however be reduced.
50)What is additional bonus on endowment policy? In policies with profit bonus is classified as revisionary bonus, where additional money is added to the amount payable on death or maturity of the policy. Once a revisionary bonus has been made it cannot be withdrawn if the policy run to maturity or to the death of the insured. Another type of additional bonus is terminal bonus, where a discretional additional amount of money is added to the payments made on maturity of an insurance policy or on the death of the insured person.
51)What are linked and non-linked insurance plans? There are two kinds of insurance schemes that provide both life cover and returns: non-linked and linked plans. When it comes to investing, it can be confusing to choose between the two. If you are looking to invest, you can go through this guide to make the right decision. Non-linked insurance plans are traditional plans, such as a money-back policy or an endowment policy. It is not linked to the stock market. It has a well-defined maturity amount and bonuses. It provides low-risk returns. Linked insurance plans are usually referred to as an insurance-cum-investment product, called ULIP. It is linked to the stock market and influenced by market fluctuations. Bonuses come at the insurer’s discretion
52)What is unit linked insurance plan (ULIP)? ULIP is a combination of insurance and investment plan. It is a variant of endowment plan. In ULIP, a part of the premiums provides coverage, and other part is used as investment to build funds. ULIPs differ from endowment plans, as the returns are linked to the market. Individuals can select the type of investment product from the range of options.
53)What is the meaning of sum assured in a ULIP plan? Unit-linked insurance plan (ULIP) is a product that brings you the best of two worlds, insurance and markets. A part of the premium you pay is used for the life insurance policy, while the rest is used to invest in equity, stocks and mutual funds. Sum assured is the amount promised by the insurer to the policyholder’s nominee in case of an unfortunate event. It is important to note that the premium amount and the sum assured are directly related. The higher the premium paid, the greater is the sum assured.
54)What should one verify before signing the proposal for ULIPS? Premium allocation charges: Whenever you buy a ULIP, the insurer spends a certain amount to take care of medical expenses, distributor fees and underwriting expenses of the policy. In order to offset these expenses, the insurer deducts a percentage of it from the premium before it is invested in the fund. However, some insurers may waive these charges as well. Mortality charges: Factors that affect mortality charges are age, coverage amount, state of health etc. Fund management fees: Fund management charges are levied before arriving at the NAV. Fund houses use this amount to maintain their overhead cost, operation cost and so on. Policy/Administration charges: This is charged during cancellation of fund units. The charges could be the same throughout the policy term or can change at a pre-determined rate. Discontinuance charges: If you discontinue the policy, you may have to pay a ‘surrender charge’. Fund-switching charges: You are allowed to switch from one fund to another. But there’s a limit. If you exceed that, you are liable to pay a fund-switching charge. Service tax deductions: The applicable service tax is deducted from the risk portion of the premium before the allotment of fund units.
55)What is a lock-in-period in ULIPs? Every ULIP comes with a lock-in period of five years. This lock-in period plays a valuable function. Your fund value is low in the beginning. Only after you have paid a few premiums does your fund value begin to grow. Consider this when looking at a partial withdraw
56)What are the different types of ULIPs on the basis of funds that ULIPs invest in? Equity Funds: These are ULIP schemes that use the premium you pay to invest it partly in equity funds. The risk ratio for these is higher since an active linkage to stock market. Debt Funds: This type of ULIP invests customers’ money in debt instruments such as bonds, where the risk is lower but the subsequent returns are low too. Balanced funds: This is a ULIP that strives to strike a balance between debt funds and stock market so as to minimize risk for customers and enhance returns.
57)What are the different types of ULIP on the basis of end use of funds? For retirement planning: These ULIPs are offered for customers who want to plan their retirement earnings by paying premiums while they are employed. For child education: These ULIPs offer benefits for your child’s education. These benefits include rolling out money at key education milestones of your children and also ensuring their education expenses are paid in case of some unforeseen circumstances take place. For medical benefits: ULIPs like these are aimed at providing financial assistance at times of medical emergencies. Special riders can be availed for protection against major illnesses or critical illnesses. For wealth creation: ULIPs meant for wealth creation help customers invest and save their money so that they have a good corpus at any particular point of time.
58)What are the types of ULIPs on the basis of death benefit furnished to customers? Type I ULIP: This plans pay higher of the assured sum value or the fund value to the nominee in case of death of the policyholder. Type II ULIP: This plans pay the assured sum value plus the fund value to the nominee in case of death of the policyholder.
59)What is partial withdrawal from ULIPs? The partial withdrawal feature is a big perk of the ULIP. You can avail a ULIP withdrawal even before the policy matures. But the flexibility that it offers comes with a few terms and conditions. And any withdrawal could have an effect on the life cover. There is no fixed limit on the amount that you, the policyholder, can withdraw. The withdrawal limits vary across insurers and across policies. Some policies have a limit based on the fund value after the withdrawal. There may also be limits on the number of withdrawals to which you are entitled. Once you exceed this limit, an administrative fee may apply on further withdrawals. Also, in many cases, you can make partial withdrawals only after intervals of three months.
60)What happens if we partially withdraw in ULIP before the five-year lock-in period? Partial withdrawals before the end of the five-year lock-in period are not an option.
61)What if you are planning to surrender or discontinue the policy before the five-year term? You can expect to receive the money only after the lock-in period ends.
62)What happens when the partial withdrawal in ULIP is after the five-year lock-in period? The partial withdrawal feature becomes available only after the lock-in period is over. Here too, there are a few things to consider. If the policyholder is a minor, partial withdrawals are possible only when he/she turns 18.
63)How does partial withdrawals in ULIP affect life cover? You might worry about how the withdrawals might affect your insurance coverage. This depends on the amount withdrawn during the two-year term before the policyholder’s demise. Every partial withdrawal leads to a decrease in the sum assured. But if you made the withdrawal more than two years ago, in such a case, the sum assured will remain unaffected.
64)What happens if payment of premiums is discontinued in ULIPs? If you discontinue the policy within three years of commencement, you stand to lose insurance benefits. Some insurers may allow revival within a pre-defined time post-discontinuation. If you insist on discontinuing for good, the insurer pays you the predefined surrender value of the ULIP. The amount will be paid to you towards the end of the revival period or the end of the third year of policy commencement, whichever is later. When you discontinue after 3 years the policy gets terminated, and you receive the surrender value provided you do not revive the policy during the revival period.
65)What is premium redirection in ULIPs? Premium redirection means allocating the funds from one unit to another either partially or fully and effectively manage your returns. Switches are options given to policyholders of ULIPs to move their investments from one fund to another, within one plan. You can transfer units fully or partially between fund options — equity, debt and equity to debt. Meaning, you can instruct that all your prior investments be rebalanced, or you can ensure that only the fresh investments in the future be changed. The former is called a Fund switch; the latter is called premium redirection. They provide a cost-effective way of entering the equity and debt markets.
66)What is money back plan? Money Back plan is also a product combining investment and insurance. Money Back plan provides periodic returns as survival benefit over the policy period. A percentage of sum assured is paid at equal intervals. As a survival benefit at the end of the policy term, balanced sum assured is paid to the policyholder. And in case, if the policyholder dies during the term, the coverage is paid to the nominee.
67)Why you need to buy a money back policy? A money back policy provides periodic pay-outs, ensuring a steady source of income to help policyholders meet expenses at different stages during the policy duration. Money back policies provide the benefits of an insurance policy as well as an investment, ensuring that the policy earns the policyholder an income instead of just merely providing a lump sum in case of his/her demise. These plans offer a guaranteed return on investment as well as periodic pay-outs and insurance cover, making it an ideal plan for individuals looking for both protection as well as a source of income. In addition to the standard life insurance offered by regular policies, a money back policy offers a policyholder a maturity benefit as well as a regular income in the form of ‘survival benefits’ for the duration of the policy.
68)How does money back policy work? A money back policy is a type of life insurance policy that offers policyholders survival benefits as well as investment opportunities in addition to maturity benefits. An average money back policy with a 20 year tenure would thus pay the policyholder what is known as a survival benefit a few years after the start of the policy. Around 20 percent of the sum assured would be paid out periodically, while the balance would be paid out at the time of policy maturity with a bonus, if any. In the event the insured individual does not survive till the policy maturation, the nominee would receive the death benefit (the entire sum assured) and the policy would be terminated.
69)What are money back policy riders? Money back policies provide policyholders with the option to add cover that is not included in the original policy document in the form of riders. These riders cover additional possibilities such as accidental death, hospitalization expenses, permanent disability and critical illness to name a few. The riders provided along with a money back policy differ from insurer to insurer and also depend on other variables such as the policy tenure.
70)Is the amount received through a money back policy taxable? If the premium paid is more than 10% of the Sum Assured for policies purchased after April 1st, 2012, the amount received is taxable.
71)Is there a penalty if I do not pay my premium for my money back policy on time? If the premium amount is not paid within the grace period allotted for the same, the policy lapses and benefits associated with the policy cease. If the premiums have been paid for a minimum of 3 years, a paid up value for a reduced sum is created.
72)Can I revive a money back policy? Money back policies can be revived within 2 years from the date the last premium was paid.
73)Can I transfer my money back policy? As of now, it is not possible to transfer a money back policy. The policy can be surrendered if desired.
74)How do I surrender my money back policy? A money back policy can be surrendered on its attaining cash value (after payment of 3 years’ worth of premiums). The policy will have a surrender value based on the policy tenure and the number of premiums paid.
75)What is child insurance plan? As the name suggests, it is meant and designed to insure the stars of tomorrow. It provides the coverage for child’s education, and other life’s milestone. In case the policyholder dies, the insurance company pays a lump sum amount. But the policy still stays in force, and all the future premiums are waived off. In such cases, on behalf of the policyholder, the insurance companies provide financial aid to develop child’s future. Some child’s plan also offers survival benefits.
76)Why do I need a children’s plan? As a parent, your priority is your child’s future and being able to meet their dreams and aspirations. Providing a good education, establishing a professional career or even a modest wedding is becoming an expensive proposition with each passing year. Costs are increasing fast. Just imagine how much you will need when your young children tale these important steps in life in the future. With our Children’s Plans, you can start building regular savings today to help you secure your child’s immediate and future needs even when you are not around.
77)Should I buy a plan in my child’s name or in my own name? When purchasing a life insurance plan, it is important to remember that its main purpose is to replace an income that is lost in case of the unfortunate demise of the chief bread winner of the family (life assured). A child rarely has an income and therefore has no reason to be insured. If the insurance plan is taken in name of the child, the plan gets derailed in case of the unfortunate demise of the parent. Thus, the very objective of any children’s plan is undermined if the plan is acquired in the child’s name. Therefore, as far as possible, make sure that you, as a parent, are the life assured and the nominee or the beneficiary is your child.
78)Who can buy child life policies? The child's parent or legal guardian or grandparent can buy the child life insurance.
79)Is the maturity amount tax free for child insurance policies? Yes, the proceeds from a life insurance policy are tax-free on maturity
80)When should I buy a child plan? Ideal time to buy a child plan is when the child is still young and not reached teens. This allows enough time to build the corpus you have planned for, with considerably lower premiums. If the child is already in teens, you hardly get 3 to 5 years to build the same corpus so the premiums are quite high.
81)What happens if the proposer of a child insurance plan passes away? Most child plans come with the payer benefit or the waiver of premium benefit. So, if the proposer dies, the insurance company takes care of all the future premiums of the child's policy. The child is also entitled to a sum assured along with it. Each insurance company has this benefit in exact or similar form depending on the company policy. Generally payer benefit is inbuilt in the child plan but if not, it can be taken as a rider with nominal premium
82)What is guaranteed addition in child insurance plan? Guaranteed addition is a percentage of sum assured which the insurance companies guarantee. It is added to the basic sum assured or the maturity amount and is payable at the time of policy maturity.
83)What is loyalty addition in child insurance plan? Loyalty addition is a kind of bonus amount declared by the insurance company from time to time depending upon the company performance. It is a non-guaranteed amount calculated on the sum assured. This amount is added to the maturity amount and is payable to you on the maturity date
84)How do I get the maturity amount in child insurance plans? The insurance companies issue a discharge or a claims form some time before the maturity date. You need to fill up the form and send it to the insurance company along with documents as mentioned in the form. The amount is then sent to you or deposited in your account.
85)Can a claim be denied in event of death of the insured in a child insuranceplan? Yes, death benefit can be denied in some cases. Death benefit is not payable in case the insured commits suicide within 12 months of taking the policy or within 2 months of reinstating the lapsed policy. If the policy has lapsed due to non-payment of premiums, death benefit is not payable.
86)What are the factors to consider while buying a children’s plan? Consider the inflated costs of a normal educational course or any other requirements that your child might have in the future. This should be your targeted savings amount, which you would want to receive when the policy matures. Ideally, the term you should choose for the plan is when your child is in a position to require the money.
87)What is a child ULIP? A child ULIP works in the same way as a ULIP. A child ULIP has twin benefits
88)Who can take a child ULIP? The child ULIP can be taken by you (parent), your spouse or even your parents (child's grandparents), as the proposer of the policy. The child ULIP is taken on the proposer's life. (You/Spouse/Child's grandparents) and he/she becomes the life assured under the policy. If you are the life assured of the child ULIP plan, on your death a lump sum is provided to your child (or the guardian), for your child's education
89)What is the lock in period for child ULIP? The child ULIP has a lock in of 5 years. (You must stay invested for five years).
90)What is a child ULIP with a waiver of premium rider? You have to pay the premiums in a child ULIP plan until the maturity of the plan or for a fixed period. If you (life assured), die before the maturity of the plan, the child ULIP pays your child (or his guardian), the death benefits (sum assured). What makes a child ULIP plan with a waiver of premium rider unique is on your (life assured) death, all future premiums are paid by the Insurer (Life Insurance Company). On maturity of the plan (when your child is 18-25 years of age), the child gets a maturity amount which is the fund value of the plan.
91)What is women insurance plan? Life insurance policies that include savings and retirement products are especially important for women due to their longer life expectancy. Women’s plans are a set of specially created and hand-picked products which suit the needs of women at different stages of their life; such as protection, health, retirement, child’s education and long term savings and investments. There are exclusive endowment assurance plans for women and considering the needs of women there are provisions for additional riders/risks/coverages.
92)Why does women need insurance plans? Women need different financial solutions than men like financial protection on spouse’s premature demise, women-specific health risks and financial security in retirement. Women’s Insurance Plans address these women-specific needs.
93)What is an Annuity/Pension Plan? Annuity is an insurance product that pays income and can be used as a part of retirement planning. You need to make an investment in the annuity and it makes payments to you on a future date. The payments are determined on length of your payment period.
94)What is annuity payable for life? Fixed annuity is paid at regular intervals throughout the insured’s life. The pension is stopped on the annuitant’s death. If you don’t have any obligations post your death, then opt for this option. Highest amount of pension is payable to an individual compared to the other options.
95)What is annuity payable for life with a guaranteed period? The annuity is paid for a certain period and thereafter till the annuitant is alive. If the guarantee period is shorter, you will get higher pension. The annuity stops on the death of the annuitant. If you have children who can take care of you after a few years, take this option for a shorter period.
96)What is life annuity with purchase price return? If you want to leave any amount for your dependents, then opt for this option. The annuitant will get pension till he dies, after his death, the purchase price will be given to the nominee.
97)What is increasing annuity at a fixed rate? The annuity paid increases each year with this option.
98)What is joint life and last survivor annuity? Annuitant will receive pension till he dies, if his spouse survives then she is also entitled to the pension. The considerable amount of pension to be paid to the spouse can be selected.
99)What is fixed annuity? Fixed annuity plans guarantee both earnings as well as principal investments and the policyholder will receive fixed payments from the insurance company for the entirety of the policy term.
100)What is a variable annuity? Variable annuity allows the customer to select investments and earn returns depending upon the performance of these investments. You may select investments that provide varying risk levels and different levels of potential growth based on how risk tolerance and investment objectives.
101)What is a deferred annuity? Here the annuitant pays premiums till the policy term is over. After its term, the annuitant will start receiving the pension. No tax is levied on the amount the annuitant invests. You can make a one-time payment or make regular contributions towards the plan.
102)What is an immediate annuity? The annuitant has to deposit a large amount and the pension will begin immediately. The annuitant can avail tax benefits prevailing in India. Immediate annuity policies are generally purchased with the payment of a lump sum amount. The income guaranteed by the company begins accruing almost immediately after the policy is purchased. The investment converts into a guaranteed source of income that will not be revoked after payments commence. While some funds can be accessed by customers, others may have certain restriction
103)What is with and without cover pension plan? ‘With cover’ will give you a life cover, a lump sum amount is paid to your family in the event of your death. ‘Without cover’ implies you do not get any life cover. The amount built till the date of your death is paid to your dependents. Deferred annuity is with cover and immediate annuity plans are without cover.
104)What is annuity certain? Annuity is paid for a specific period. If he dies before that period, the beneficiary receives the amount.
105)What is guaranteed period annuity? Annuity is paid for certain periods regardless of the survival of the annuitant.
106)What is life annuity? Pension is paid till the annuitant’s death. If with spouse options is chosen, then the pension will be paid to the spouse.
107)What is National Pension Scheme? This is introduced by the government. You have the option of withdrawing 60% of the amount at retirement and the rest is used to purchase annuity. The maturity amount is not tax free though.
108)Can I make an early withdrawal from my pension plan? Early withdrawal from retirement plans may be allowed. However, there are certain government regulations applicable on early withdrawal from retirement policies. Do check with your insurer regarding early withdrawals before you invest in a certain plan.
109)What is death benefit under a pension plan? In a pension plan, death benefit is defined as the amount which will be paid on the passing away of the insured to the beneficiary of the insured, named in the policy.
110)What is meant by annuity in a pension plan? Annuity is the term used to define the systematic payouts which you receive from your pension plan after your retirement. Most pension plans will allow individuals to avail annuity payouts on a monthly, quarterly, half-yearly or yearly basis.
111)Can I change my premium payment frequency for my pension plan? If you wish to change your premium payment frequency, you are advised to contact your insurance provider for the same as the facility may or may not be allowed by different insurers.
112)How does life insurance work? Should the policyholder die while a life insurance policy is in force, then the life insurance company will pay out the death benefits specified in the policy. Additionally (applicable to permanent life insurance policies only), the insurance company will accumulate a cash value. Death proceeds are paid as a lump sum to the named beneficiary (the person who will receive the life insurance benefits), as stipulated in the policy.
113)Do I have different options to pay my premium? Yes, there are options available to you to pay your premium. You can pay your premium monthly, quarterly, half-yearly or yearly. You can also pay it in one lump sum. However, a monthly premium is the most common because the amount is relatively small and it is easier to monitor and be prepared for a more frequent premium payment.
114)What are the factors to be considered while calculating premium? Age: The older you are when you buy your policy, the higher the premium will be. That will be the case whether the policy you buy is term or whole life. By age 65 the premiums might be prohibitive, if the company will even be willing to accept the policy at all. Gender: Statistically, women live longer than men, thus affecting the premium they pay. Women will generally pay less in life insurance premiums for a policy with the same face value and at the same age as a man. Premium will be paid for a larger period of time but at lower rate which is a plus point for the women. Smoking: Smoking puts the policyholders at higher risk of all ailments; thus most smokers pay a premium twice as much as non - smoker does, affecting the premium to a huge extent. Medical history: Your medical history – including any current health conditions – will have an effect on your premiums. Health records: You as the policyholder will also need to provide your own health records. These records will ensure that you don’t have any chronic diseases or potential health issues and keep your premium also in check instead of making a difference to it. Drinking: If you as the policyholder are a heavy consumer of alcohol this can affect your premium at higher insurance rates. The Policy: The policy itself also affects the premium you pay, the longer the tenure of the policy the larger the amount of the benefit at the time of death, since you’re paying it for that period of time. Short term policies are more expensive that long term. Profession: Your profession also plays an important role in the premium you end up paying, Obesity: Obesity is another factor that affects your premium as a policyholder, being obese can lead to a number of health problems causing overall health problems in the future and also increases your rates.
115)How is life insurance premium calculated? Premium is calculated through the underwriting process. Insurers underwriting team does the mathematical and statistical calculations. This process involves several factors. Once the information is gathered and scrutinised by the underwriting team, it is further scrutinised by the statistical team, who are known as actuaries. They predict the probability of the claim of the policy. If the probability of the claim is high, the premium amount is likely to be high for the associated risk. Actuaries also predict the probable losses due to the sickness or death of the insured, with respect to age and gender, through mortality and sickness tables Based on the data scrutinised from the mortality and sickness table, premium amount is calculated
116)What happens if I fail to pay the required premium amounts? You should ideally pay all the premiums due in your term plan on time. If premiums are due beyond the due date, a grace period is allowed for paying the premiums. If the premium is not paid even in the grace period the policy would lapse. A lapsed policy has reduced benefits called the paid-up value. In a lapsed policy the sum assured would be reduced in proportion to the premiums you actually paid against the total premiums payable. This reduced cover would defeat the whole purpose of a term plan and so, paying the premium is always advised.
117)What is claim concession clause? Generally, if premium is not paid on due dates for life insurance, the policy lapses. However under this clause if the premium is not paid after certain period, the claim will be considered for the full sum assured, as if the policy remained in full force. The clause state that of the insured has paid three full year premium and dies within 6 months of the first unpaid premium, the assured will be paid to the beneficiary after deducting the prelim with interest. Likewise, if the premium is paid for 5 years and the insured dies within one year from the date of unpaid premium, then the assured will be paid after deducting the premium with interest.
118)Can I upgrade my existing life insurance plan? Yes. Having a life insurance plan with adequate cover is a recommended way to safeguard your loved ones. With growing dependents in the family, your responsibility towards protecting them would also increase, hence it is advisable to have an insurance cover which matches with your responsibilities. One should revisit the life insurance cover according to the rising financial income and need of the family.
119)Can minor(s) be nominee or beneficiary? Although you can nominate your minor children as nominees in your life insurance policy, as they are minors, you will need to nominate an appointee who will have to sign the insurance proposal or the policy, giving his consent to act as appointee. The appointee will cease to be an appointee when your children become majors. In the event of a claim, if your children are still minors and you did not name an appointee, the claim proceeds will go to your legal heirs. Also note that when you nominate two or more children, it is a case of joint nomination. As such, the policy proceeds will be payable to both children or to the surviving child; you are not, however, allowed to specify the share of each nominee.
120)Why should I appoint a nominee and whom can I appoint as a nominee? When you appoint a person as your nominee, the nomination enables your nominee to receive the policy proceeds in the event of your untimely death without necessity of producing any legal evidence of title to your estate. You may nominate any person as your nominee
121)Who is an appointee in life insurance? An appointee may be appointed to receive the policy proceeds in case of death of the life assured during the period that the nominee is a minor. The appointee should be a major person.
122)How is claim settled at the time of death? It is advisable that the claimant registers the claim at the earliest or at least during the claim intimation time (usually 60 to 90 days from the date of the death of the policyholder) as specified by the insurance company. The claimant can also take help of the insurance advisor who sold the policy to the policyholder. The claim settlement process may slightly vary from one company to another
123)How is claim settled at the time of maturity of the policy? The payment by the life insurance company to the insured on the date of maturity term is called maturity payment which includes a sum assured and bonus/incentives, if any. The insurance company intimates the maturity date and amount to the policyholder through a blank discharge voucher, about 2-3 months in advance. The policyholder has to furnish the information mentioned in the discharge voucher, sign it and submit it along with the original policy document to the insurance company. If the policyholder has assigned or reassigned the policy, then the relevant deed has to be submitted too.
124)What is life insurance riders? Life insurance riders are contingent additional benefits over a primary policy, which come into play in case of a specific eventuality. They offer financial cover over and above basic sum assured in a life insurance policy. Even with the occurrence of the event, the life cover remains intact. This means that even if you have drawn on a particular rider, you remain eligible for the death benefit on the life insurance plan. The different riders available are critical illness, term rider, waiver of premium rider, accidental death rider, and disability One way to maximize the benefits on your life insurance policy and to customize it to suit your specific needs is by opting for riders. Policyholders can attach riders to any insurance plan be it a term plan or endowment plan or unit-linked plan (ULIP) or money back plan. The policyholder should select riders based on individual and family needs since they can enhance the life cover and secure the financial well-being of the family more comprehensively.
125)What is rider claim settlement process? The rider claim settlement process depends on the type of the rider taken. At times, the settlement for riders like accidental death or premium waiver runs parallel with the death claim.
126)What is a disability rider? The disability rider pays the policyholder a lump sum amount upon disability due to an accident or sickness where 100 percent of the sum assured is paid upon loss of or loss of use of both limbs, or loss of eye sight. 50 percent of the sum assured is paid upon loss of speech, loss of hearing in both ears, and loss of or loss of use of any one limb. This rider also waives off any further premiums on the base plan upon disability. This means your policy continues to remain active without any future premium payments.
127)What is an accidental death rider? In case the policyholder passes away due to an accident, the policy’s nominee receives the death benefit, as per this rider. The death benefit is a minimum amount of INR 1,000,000 and a maximum amount that is equal to the sum assured of the policy’s base plan.
128)What is critical illness benefit in life insurance? In addition to the benefits under the Life option, you are also covered for the Critical Illness (CI) benefit under Life and Health and All in One option. The CI benefit offers you coverage against many critical illnesses. When a major illness strikes, it can place a huge burden on your family, not only because of the cost of medical care but also because you may not be able to work. To protect you against this, we will pay you the ci benefit, as a lump sum to meet your financial needs. The benefit is payable irrespective of the actual expenses incurred by the policyholder. This benefit is payable on first occurrence of any of the covered illnesses. The CI benefit, is accelerated and not an additional benefit which means, the policy will continue with the death benefit reduced by the extent of the CI benefit paid. Premium payment on account of CI benefit will cease after payout of CI benefit and the future premiums payable under the policy for death benefit will reduce proportionately. If CI benefit paid is equal to the death benefit, the policy will terminate on payment of the ci benefit. In case of incidences covered under accidental permanent disability as well as CI, benefits shall be paid out under both the options
129)What is hospitalisation rider? This rider provides the policyholder with assistance in paying hospital bills in the event the policyholder is hospitalized. A daily allowance is issued to the policyholder to cover expenses related to treatment
130)Is life insurance taxable? Life insurance proceeds are usually not taxable if they are paid to a specifically named beneficiary, such as your spouse or children. The life insurance proceeds may become taxable, however, if you name your estate as the beneficiary. At that point, the proceeds become a part of your estate, and can be subject to estate taxes.
131)Would I get any income tax benefits? Life insurance plans appeal to most of us because of the inherent tax benefits and a term plan is no different. The premium that you pay for the plan would get tax relief up to a limit of Rs.1.5 lakhs as per the current tax provisions under Section 80C of The Income Tax Act 1961. Even any claims which you receive in your policy would be tax-free under Section 10(10D). What’s more, there is no limit on the claim benefit received and the entire amount would be tax-free.
132)What is a child education plan? A child education plan or children education plan helps you save ample amounts through the regular premiums paid for this purpose. Typically, in a children education plan, a portion of the premium is earmarked for providing financial protection to the child. The other portion is used to invest the money so that it grows well during the long term of the children’s plan. These two aspects of a children plan ensures that the there is adequate provision for a child’s higher education in case of unfortunate event as when the term of the child education plan is over. Another important aspect of child education plan is you get tax benefits both for premium paid up to Rs 1.5 lakhs under Section 80C of the Income-tax Act, 1961, and for maturity proceeds under Section 10(10D) of the Income-tax Act, 1961, subject to fulfilment of the terms and conditions stated therein. This ensures that the growth of the money under a child education plan is tax-efficient as well.
133)Are there policies that provide both life and health coverage together? Yes. There are policies that provide both protection and health benefits under one plan. It protects you and your loved ones from financial losses due to death or health incidents.
134)Are there plans that provides cover against death, disability and diseases? Yes, some insurance companies do provide against these 3 uncertainties. Your family is safeguarded financially if an unexpected eventuality occurs. Provide financial security at an affordable price, ensure your family has comprehensive security always, and maintain the family’s standard of living even in one’s absence

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