Life insurance: Go for top-up plans and riders to increase health cover as you age

Published: November 20, 2018 2:35 AM

It is very important for any earning individual to have a life insurance cover at least until his/her age of retirement.

life insurance, insurance, insurance policy, insurance plans, insurance companies, insurance maturityIt is important to be aware that as age increases there is increase in morbidity rate.

By Pankaj Razdan

Q 1. I am of 66 years and my wife is 61. We have a family floater policy of Rs 5 lakh from Baroda Health and individual policy of Rs 10 lakh of ICICI Prudential Hospicare. Please advise whether the insurance is adequate or we should go for change in insurance cover. In last seven years, there were only two claims for cataract operation for myself. – Randhir Patel

In your case it is advisable that you continue with your current family floater policy. It is important to be aware that as age increases there is increase in morbidity rate. Keeping in mind the rising medical expenses you can look at increasing your health cover with another health insurance policy. You can opt for top-up plans or riders post evaluating your requirements.

Q 2. I have lost a lot of money in ULIPS in the last six months. I had started to invest one year before. Should I stop paying every month? —Vivek Pandit

Market fluctuations are a part of any investment and ULIP returns are subject to the same. It is important to know that actual returns and gains are made when you stay invested for longer term where these fluctuations get ironed out. This ensures that your long-term goals are not compromised due to short-term fluctuations. Hence, stick to your investment with patience.

Q 3. I had taken two life insurance policies 15 years ago. For the past three years, we were abroad so could not pay premium. Should I pay the premium and revive the policy or withdraw entire amount? —Arvind Kumar

It is very important for any earning individual to have a life insurance cover at least until his/her age of retirement. Presuming that you are still within the earning age bracket, it is essential to keep yourself covered. Even if you are in any other country you can pay the premiums online. For policies to continue, you should inform your insurer regarding change in your contact number, correspondence address and email id. Opt for ECS facility to ensure that your premiums are paid on time and your policy continues.

For now, immediately connect with your insurer and check the status of your policies. In case they have not lapsed you can pay the remaining premiums, else if the policies have lapsed, you should definitely revive them ensuring that your life stays covered until a desired age.

The writer is MD & CEO, Aditya Birla Sun Life Insurance and Dy. CEO, Aditya Birla Capital. Send your queries to fepersonalfinance@expressindia.com

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