Life Insurance: Take critical illness cover as individual plan or as a rider

By: | Published: April 10, 2018 1:22 AM

Life insurance companies offer critical illness as an individual plan or as a rider which can be purchased at a nominal cost.

INSURANCE, LIFE INSURANCE, SUPREME COURTThe date of linking Aadhaar to existing insurance policies is extended till a judgment is passed by Supreme Court of India. (PTI)

* I want to take insurance cover for critical illness. Can I get one and how much would be the premium?

—Ronit Chawla

Life insurance companies offer critical illness as an individual plan or as a rider which can be purchased at a nominal cost. The premium for such policies will depend on the number of illnesses covered, the policy term, the benefit amount and the age of the insured at the time of purchase of the policy. Citing an example: For an individual aged 35 years with a sum insured of `2 lakh, the annual premium is between `300- 500.

* Since the Supreme Court has extended indefinitely the deadline for linking Aadhaar with all services, do I still have to link my insurance policies now?

—Aditya Gupta

The date of linking Aadhaar to existing insurance policies is extended till a judgment is passed by Supreme Court of India. However, linking it helps in faster completion of eKYC of policy.

* We took an LIC policy in 1995 for our daughter who was 12 years then. In 2003 she moved to USA and is settled there. Premiums have been regularly paid. LIC is now asking for Aadhaar card. Is it necessary?

—D Kundra

Linking of Aadhaar to existing policies has been extended until Supreme Court passes a final judgment. However, it is not mandatory for NRI/ PIO to have Aadhaar card to get insurance benefit payout.

* This year I want to buy the Pradhan Mantri Jeevan Jyoti Bima Yojana. Is there any income criterion for taking the cover and will it affect my existing life insurance policies?

—Lakshay Gupta

No, there is no specific requirement on income to buy Pradhan Mantri Jeevan Jyoti Bima Yojana, but this facility is only available to valid bank account holders. Also, it does not impact any existing life insurance policies held by the insured.

* My insurance policy matured last year but I have lost my original policy document. The insurance firm told me to file an FIR and give them a copy to claim the money. The police refuses as it is not a theft. What should I do?

—Vinod Kumar

Insurance companies pay maturity proceeds to policyholders through bank transfer or cheque. If such a scenario is faced by the insured, he can provide the insurance company with an indemnity bond to claim the maturity benefit.

The writer is CEO, Reliance Nippon Life Insurance. Send your queries to fepersonalfinance@expressindia.com

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