Can I switch my present pure time period coverage to a zero-cost plan?

I purchased a pure time period insurance coverage plan 5 years in the past and have paid round ₹1.5 lakh as premium. Recently, I got here to learn about zero-cost time period plans. Can I change my present plan to zero-cost time period plan in order that I can get again my premium quantity fully?

—Name withheld on request

In easy phrases, zero-cost time period plans are a sort of return of premium plan. If you select to cancel the plan earlier than its time period is over, you’ll be able to nonetheless obtain a refund of your premiums. This choice is normally accessible after the age of 60. However, these plans are costlier than common time period plans, that means you’ll have to pay additional premiums for 20 years earlier than being eligible for a refund.

If the policyholder dies throughout this time, the dying profit is similar for each common time period plans and 0 value plans. Given that the primary goal of the plan is to supply protection for early dying, I might not advocate paying the upper premium.

Keep in thoughts that time period plans are separate long-term contracts and can’t be transferred from one plan to a different. If you need to change to a zero-cost time period plan, you have to to buy a brand new plan and discontinue your previous time period plan.

I’m 36 years previous and plan to purchase essential sickness cowl for my household of 4, together with my spouse and two very younger youngsters. My youngest little one is simply 1 12 months previous. I have already got a well being coverage however the insurer doesn’t have any essential sickness plans. Can you let me know the insurance coverage corporations that supply standalone essential sickness cowl in order that I can subscribe for a coverage price greater than ₹50 lakh?

—Anurag Goel

There are a number of insurance coverage suppliers, together with ICICI Lombard, HDFC Ergo, Aditya Birla, and Niva Bupa, that supply stand-alone essential sickness plans. Only a couple of of those corporations present a sum assured higher than ₹50 lakh. Keep in thoughts that underwriting norms change usually, so it’s necessary to examine with the precise insurer or your advisor to find out which one will supply the specified protection.

If you’re unable to search out the specified sum assured from a single insurer, you should buy a number of plans from completely different suppliers. In the occasion of a named sickness, all plans pays out. Note that essential sickness plans are mounted profit plans and a declare from one plan won’t have an effect on the others.

Critical sickness plans are sometimes issued on a person foundation and might be bought for every member of the family. However, it’s necessary to understand that insurers have a minimal entry age, normally 5 years, so it is probably not doable to buy protection for a 1-year-old little one.

A essential sickness coverage provides protection associated to life-threatening essential sicknesses and life-style illnesses similar to stroke, kidney failure, stay problems, and paralysis, and so forth.

Abhishek Bondia is principal officer and managing director, SecureNow.in.

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