Money back policies pay returns to the policy holder in installments. Endowment policies may the payment in one go. In moneyback policies, while continuing the insurance cover for the term, according the policy structure, a part of the insurance sum is paid at fixed intervals. If the policy holder dies suddenly, the policy amount is paid without deducting the paid amount. This policy is suitable for those who want money at fixed intervals for family needs.
Policy time period: 7 to 25 years.
Minimum and maximum age limit:
Most policies, 13 to 60 years. Some policies provide this from 30 days of age.
Policies are there with payment for 5 to 20 years and premium is decided based on the insurance amount. Paid monthly, quarterly, half yearly or yearly. Some policies allow one-time premium payment. There are policies where premiums are paid for the duration of half or less than that time period.
The policy document will have the total insurance amount listed. There are different policies with amounts starting from 1 lakh to 20 lakhs. The policy amount along with any special benefits are paid at maturity. Some companies don’t have limit for the maximum insurance amount. This policies have the maximum limit based on conditions.
A policy is considered matured once the term is completed. There are policies with maximum maturity period of 70/75 years. There are policies with minimum maturity period as well. In a 20-year policy, either a part of the insurance amount is paid every 5 years or starting from the last 5 years and the remaining at maturity.
Free-look or cooling off period:
Policy can be canceled within 15 days of taking it, called free-look period.
There are little chances of surrendering the policy. Companies facilitate surrender of policies with regularly paid premiums for 3 years in case of only emergencies. This changes from one to another company. The surrender value is stated in the document and is paid according to that. First year premium may be exempted for such payments.
Since these policies have investments, may not serve the purpose in case of serious illness or disability.
There are several riders with money back policy. Accidental disability rider, critical illness rider, hospital cash benefit rider, accidental death benefit rider, term rider are some of them.
Loan on policy:
Based on the policy term, there is provision for getting loan after 1 year up to 50 to 80 percent of insurance amount per conditions.
· Money back policies are beneficial for people ages 30-35.
· Can be chosen for children education and marriage.
· Provide financial security as well as investment benefit.
· Survival benefits without deducting paid installments.
· Available along with several riders.
Comprehensive individual accidental insurance:
Life is unpredictable as we all now. We have insurance per our financial goals and health insurance to protect our savings in case of illness. Health insurance saves from the expenses of hospital bills from an accident but what if an accident causes disability and can he get away from the responsibilities. If he is the main earner in the family, his dependents are faced with misery. The daily expenses along with health bills from the accident make the life miserable and here comes the accidental insurance as a savior.
Accidents cause disability that can be temporary or permanent and there is every chance of losing income after accident. Sometimes, the injuries from the accident can result in losing the job or business permanently or may require leave from the job for months altogether. Individual accidental policy comes as a great savior here.
In case of accidental death:
Life insurance policies save the family in case of accidental death. If there is an individual accidental policy, it can also be claimed here.
This is more disastrous than death. The accident hit person may have to depend on the family. More money is needed for family maintenance as well as treatment for the injured. In such instances, insurance company will pay the whole amount to the family.
Permanent partial disability:
In case of loss of organ, removal or loss of its function, the financial loss incurred due to such is paid by the company as well as some part of the insurance amount.
Compensation is paid by the insurance company in case the insured is not able to attend his employment or business duties temporarily due to the accident. As this serves as an income source, choosing the right amount will be very useful in case of tough times.
The accident riders taken along with life insurance work for the limitations set only and the riders get ceased with one claim with no second claim allowed. So, a comprehensive accidental policy is always useful.
Accidental death benefit or permanent/temporary rider can be bought for nominal prices for primary protection but a comprehensive one is always better.
Instances where individual accidental policy is not applicable:
· Incidents occurring due to pregnancy and delivery of the insurer.
· Suicide or suicide attempt.
· AIDS or other STDs.
· Severe illness.
· Road accidents caused by alcohol or drugs.
· Accidents due to crimes.
· Accidents out of adventure sports.
· Those in armed units of army.
· Ill effects of atomic radiation.
· Damages caused by war or war like situations.
Documents needed for claim:
· Policy number, accident date, policy copy.
· Completely filled claim form.
· Original bills and payment receipts.
· Doctor prescription and x-ray reports.
· Postmortem report.
· Doctor certified reports.
· Certification from doctor if fully recovered.
· Proof of employment.
· Death certificate.
· Leave certificate
Any other documents asked by the insurance company.
Eligibility: Children of 5 years to elders of 70 years.
If earning, either of the couple or both are eligible for 100% insurance amount.
Reforms in insurance sector:
· With reforms in the insurance sector, there are several changes to the individual accident policy.
· Provision to insure up to 10 times of annual income.
· Some companies give up to 150% of the insured amount in case of permanent total disability.
Individual health insurance
A health insurance policy can be taken individually or for the whole family per requirements. Individual policy gives health insurance to the insurer only.
Anyone between ages 18 and 65 can take this policy. Parents or guardians can take for kids under 18 years. The insurance amount can be decided per needs and income. Policies are available from 1 lakh to 50 lakhs.
Premium is decided based on age, health issues, family health history, habits and living area.
For example, a smoker may have to shell out higher premium.
In generally, medical checkups are not mandatory until 45 years. Medical check expenses can be paid by the company for those above 45 years.
Insurance company will bear the expenses of hospital, pre hospital, and after discharge. ambulance as well as other costs of recovery from the illness are also paid.
There is waiting period for preexisting diseases up to 3/4 years, meaning policy will be applicable to these only after 3 to 4 years.
Cashless treatment for network hospital or health cards are provided.
There is freelook period of 15 days in case you find it not sufficient.
No-claim bonus is paid in case the insurer doesn’t claim for the year.
Income tax exemption under section 80 (D).
Some policies provide interaction online with doctors, dieticians, etc where we can clarify any doubts and get advices and suggestions.
Most insurance companies don’t pay for other treatments than allopathy.
Things to note while taking a policy:
· Check whether the hospitals we want are in the network.
· Better to know the diseases covered and not covered.
· Check if there are any copays or sub limitations, if there are to what extent.
· Know the phone number and other details of third party.
Important note before taking a health policy:
Maximum age limit to renew the policy:
Better to choose the maximum age before taking a policy because health deteriorates with age and the elderly need it more. Also, premium will be more if health policy is taken at an elderly age. So, it is better if our policy has high age limit.
Diseases excluded from health insurance: Always know the diseases not covered by the insurance to avoid shock if know while claiming.
Copay (insurer to bear expenses along with the insurance company):
The insurer and the insurance company will bear the hospital expenses jointly. For example, if this stands at 80:20 ratio, the insurance company will pay 80000 for a 1-lakh hospital bill and the insurer the remaining 20000. Always know the copay so that we can estimate the cost that burdens your pocket.