based on conditions outlined in the policy document.
How can I take a top-up policy and how beneficial is it in the long run?
— KP Rao
Top-up allows you to contribute additional amounts over and above the regular premium payable, thereby increasing the investment component in your base plan. Topping-up allows you to increase your investment and savings at your own pace. Also, since the premium allocation charge on top-ups is lesser compared to base plan, the investment component is higher. You can contact your insurer to top up your current plan. However, top-ups do not alter the original sum assured under the policy.
My family consists of four people-- wife and two sons. Should I opt for an individual or a floater health insurance policy?
In case of an individual policy, one needs to take out separate policies for each family member. In the case of a family floater, all family members are covered under one policy. However, there are pros and cons.
Family floaters are simpler to manage in that one can add or reduce members and the maximum sum assured can be used for the care of one or several members. They may also be marginally cheaper. However, typically they are renewable only till the oldest member of the group remains within renewable age, and, earlier continuous coverage and claim history may also not get proportionate benefit.
* The author is executive vice-president, Kotak Mahindra Old Mutual Life Insurance
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