What is term insurance?
A type of life insurance, term insurance provides coverage to the insured for a specific period of time. The time or “term” of the insurance can be finished when the insured individual is still alive. The policyholder pays premiums to the insurance company during the term of the policy, and in the event of the policyholder's death during the term, the insurance company will pay a death benefit to the insured’s nominee.
For how long should I buy term insurance?
The length of time you should buy term insurance depends on individual circumstances. Some factors to consider while buying term insurance include:
- Age,
- Financial status,
- Risk tolerance,
- Dependents,
- Debts, etc.
Ultimately, the best way to determine how long you should buy term insurance is to speak with a financial advisor.
What if the assured die after the end of the policy term?
No, you cannot get your sum assured amount on claim before the policy term expires. This is because term insurance plans are solely designed to provide protection to the insured during the specified term duration. So, in no case you will receive your sum assured amount before the policy term expires.
Who can be the nominee in my term insurance policy?
The nominee in a term insurance policy depends upon who the person insured chooses. They can be a spouse, child, parent, or friend. Choosing someone as the nominee for your insurance plan is an important decision since they will be the ones receiving the benefit in case of your unfortunate demise.
What is health insurance?
Health insurance is a type of insurance that covers the cost of medical expenses, such as doctor visits, hospital stays, and prescription drugs. They are one of the most important insurance plan available and should be bought by all adults to provide a safety blanket in case of meeting an accident or being hospitalized.
Will I get a deduction from health insurance in income tax?
Yes, you may be able to get a deduction of health insurance in your income tax. As per Section 80D, a premium amount of up to ₹25,000 in a financial year is valid for health insurance in income tax. The amount of the deduction you can claim depends on your income and the type of health insurance you have.
Is cancer/heart attack covered in health insurance?
Yes, cancer and heart attack are typically covered in health insurance plans. However, the specific coverage for these conditions will vary depending on the plan. Always make sure to go through all the conditions included in the health insurance policy before buying one.
How can I claim my health insurance policy?
To claim your health insurance policy, you will need to contact your insurance company. They will then ask for a set of necessary documentation. The documentation required will vary depending on the type of claim you are making. Here is a list of generic documents you will need :
- Your health insurance policy number,
- Proof of hospitalization, that include medical bills.
- Doctor’s Notes (Prescriptions), etc.
The list can vary based on the health insurance provider’s requirements.