What is the difference between health insurance for general insurance companies and life insurance companies

What is the difference between health insurance plan of General Insurance Companies and Life Insurance Companies?

Health insurance plan of general insurance company works on the principle of reimbursement. In which hospitalization expenses (provided that of min of 24 hrs hospitalization) is paid upto sum assured.

What is the difference between health insurance for general insurance companies and life insurance companies

Health insurance plan of life insurance companies works on the principle of compensation. In which hospital daily cash benefit (provided that of min 48 hrs hospitalization) and major surgical benefits are paid as per the fixed amount under plan opted irrespective of actual expenses. In this type of plan premium are allocated in two parts one is investments and another is for providing benefits. Generally, premium and expenses are on higher side in such type of plan.

Can a policy holder have both paper and electronic policies?

Policy holders can choose the form in which they want their policies issued - paper or electronic. A policy can be bought or maintained in one form only - either in electronic form or paper but not in both. However, a policy holder can choose to keep some policies in electronic form and others in paper form - only the electronic policies will be reflected in his e IA account and he can use repository services only for the e policies (and not the paper policies)

Can anyone become or set up an Insurance Repository?

No, only entities approved by Insurance Regulatory and Development Authority (IRDA) can become an Insurance Repository.

Insurance Companies cannot set up an Insurance Repository on their own nor can they hold more than 10% stake in any Insurance Repository.

Can I take health insurance plan for my parents who are senior citizen? Is there any tax benefit available if I pay premium for them?

Yes, you can take health insurance plan for your parents who are senior citizen. Now a day's so many insurance company has designed product especially for senior citizens. You are also eligible to claim tax deduction u/s 80D upto Rs 20000/- P.A. if you pay premium for them.

Can I take two policies and get claims under both of them?

In case of an indemnity cover (one that seeks to compensate the actual loss )--for instance, a policy that covers property, if there are two policies in vogue, the loss shall be shared by both the policies. In no case can an insured get more than the actual pecuniary loss he or she has incurred. On the other hand, in respect of benefit policies like the Personal Accident policy, where a fixed compensation is paid, no matter what the actual loss is , one may obtain more than one policy.

Can policy holders have multiple e Insurance Accounts if they have multiple Insurance policies issued by various Insurance Companies?

No. IRDA stipulates that an individual can have only ONE e Insurance Account across Repositories, irrespective of the number of policies owned by a policy holder - thus, if a person has an e IA with say Repository A, with any other Insurance Repository. All Repositories will have systems in place to check this before opening an e IA - any application for a second or multiple e IA will be rejected by the Insurance Repository. All the electronic policies owned by a policy holder can be credited or held under this single e IA

Can the eIA be operated by the Policy holder only?

Yes, the e IA can be operated by the account holder only during his life time, unless, of course, he has been unfortunately rendered incapable to operate it (incapacity due to mentally unsound means or terminally ill as certified by a medical practitioner). In such circumstances, the e IA may be operated by the Authorized Representative (AR) appointed by the account holder (pl see below for details).

The account holder is strongly advised to keep the log In ID and password for online access of his e IA confidential and not share it with anyone else.

How can Insurance Repository provide free service to policy holders? Where is the catch?

The Insurance Repositories will be paid directly by the Insurance Companies whose policies are held in electronic form in the respective Insurance Repository so that no charges are levied on policy holders. Insurance Companies will be able to pay these fees out of the savings that will accrue to them by the migration to issuance and maintenance of policies in electronic form.

How can Insurance Repository provide free service to policy holders? Where is the catch?

The Insurance Repositories will be paid directly by the Insurance Companies whose policies are held in electronic form in the respective Insurance Repository so that no charges are levied on policy holders. Insurance Companies will be able to pay these fees out of the savings that will accrue to them by the migration to issuance and maintenance of policies in electronic form.

How do I collect the maturity amount from the insurance company?

Insurance companies send information in advance to the policyholder regarding the maturity of the policy. The policyholder will be required to fill-up the forms along with the documents attached as per requirement. If the paper work is done properly and verified then the payment is either sent by post or directly credited in your bank account.

How do I convert my existing paper policy into electronic form?

On opening an e IA, you just need to write out a request, addressed to the Insurer, for converting your existing paper policy to electronic mode. Request Forms for policy conversion are available in all offices of the respective Insurance Repositories. They can also be downloaded from respective websites. You need to fill out a separate request for each paper policy that you wish to convert to electronic form. These requests, duly signed, can be submitted at the respective Insurance Company or at any Insurance Repository office.

If you do not have an e IA, you can submit an e IA opening form with the necessary supporting documents along with the request for converting paper policy to electronic mode.

How do I reduce the cost of buying life insurance?

The cost of a policy could be lowered if one starts buying insurance at an early age (while the risk is lower). A longer duration policy along with large sum assured would also reduce the cost. Also you will avail discounts if you offer to pay premium annually. Select a low cost policy such as a Term product. Do not buy riders or additional benefits that may not be of additional benefit to you.

How do I understand a life insurance Policy?

It is necessary to know the following terms in order to understand a life insurance policy:

Premium - the amount of money you have to pay to continue your insurance coverage.
The premium amount depends upon
• Your age
• Policy selected
• Mode of premium payment
• Term of premium payment
• Term of the policy

You could choose to pay premium monthly (as a deduction from your salary), quarterly, half yearly or annually. However, there are Single premium policies where you pay premium once only (hence you do not have the facility to make the effort of paying premium regularly).

Term - the number of years you choose to insure yourself.
The longer the term the lower the premium. Policy terms vary from a single year to a maximum of 55 years. Not all policies offer you a range of terms.

Premium paying term - the number of years you pay premium on your policy.
The longer the premium paying term, the lower the premium. Usually the premium paying term is the same as the policy term. However, some policies offer you the option of selecting a premium paying term that is lower than the policy term.

Sum Assured / Face amount - the amount of insurance cover you have or the minimum amount your family receives in the event of your demise.
Your family could get more than this amount based on the type of policy or riders that you select.

Bonus / Participating profit - is declared by the insurance company each year as a proportion of the sum assured. This amount could vary; it could be different for different policies and terms.
Although declared each year, the bonus is a lump sum payment made to the insured person upon maturity or to his family upon death, in addition to the sum assured.

Bonus is based on an insurance company's assumptions about the future performance. Like any other assumption, actual results will be more or less favourable. The longer the time being projected, the greater the likelihood of variance from the predicted values. Not all companies guarantee the amount of bonus on each policy.

Guaranteed Addition - is a declaration made by the insurance company; it states that irrespective of the financial results of the company, the company will pay the guaranteed amount of money, to the insured or his nominee.
Like the bonus amount, this is a lump sum payment made to the insured upon maturity or to his family upon death, in addition to the sum assured.

Survival Benefit - is the amount of money received at pre-fixed, regular intervals by the insured person, upon survival of the term of the policy.
Often, money received upon maturity or at the end of the term of the policy is also referred to as Survival benefit.

Maturity Benefit - is the amount of money received by the insured, upon survival of the term of the policy.
In case of policies that offer a bonus, the sum assured plus the bonus for the term of the policy is paid to the insured upon maturity. In addition, some policies offer a loyalty addition, which is paid as a proportion of the sum assured and is based on the term of the policy.
In case of policies that offer no bonus, upon maturity, the sum assured or a refund of the premium or no money is receivable by the insured (depending on the type of policy selected).

Cover or Death Benefit - is the amount of money the nominee receives from the insurance company upon the insured's death. In addition to the sum assured, this would include the bonus, if any.
If additional riders such as Accident Death Benefit or Additional Sum Assured have been selected, the amount of money receivable by the nominee could be higher.

Returns or Pre-tax yields - Interest earned on the premium, on a compounded basis, is the pre-tax yield.

Post-tax yields - If the premium paid for a life insurance policy is used as a tax deduction under section 80C, then the effective premium paid by the insured is lower. Interest earned on the effective premium, on a compounded basis, is known as the post-tax yield. 

How long will it take for the Insurance Repository to open AN e Insurance Account?

The Insurance Repository will open an e Insurance Account within 7 business days from the date of receiving the eIA application form. On opening the e IA, the Insurance Repository will inform the applicant the particulars of the e Insurance Account and usage instructions through email and by post.

How much does life insurance cost?

The cost of buying an insurance policy depends on the following factors:
The insured person's age, health and his nature of work
Type of policy selected
Sum assured
Policy terms
Term for paying premium and payment frequency
Riders (if any) attached to the policy

How much health insurance I should opt?

Looking to the present medical cost we should take min sum assured of 3 lacks. We should also keep in mind that once we will be suffered from and disease then sum assured will not increase so, we should consider higher sum assured to cover inflationary medical cost for future.

How much should I insure for?

The amount you insure for is called the sum assured. Normally a policy should cover the value of the asset - either the market value while insuring, or the cost of replacing the asset should it be lost or destroyed. The premium will depend on the sum assured.

How much sum assured I should take?

There are two methods of deciding the sum assured which is human life value and need based analysis. One should use need based analysis method for deciding sum assured. In need based analysis method we should add survivors living expenses, future value of outstanding life goals, outstanding debt, cost of dying (funeral, estate lawyer's fees, etc.) and subtracts saleable investments, and insurance already available. The difference is the sum assured required.

How pension plan works?

Pension plans are also known as retirement plans for your future financial stability during your old age. With ever increasing cost of living it has become important that you make arrangements for your retired life. When you continually invest in this plan it
grows with the compounding effect.

I am already covered by my Employer in a Group Mediclaim policy, do I need to buy a separate policy? In case of a claim will I get paid from both policies?

— It's good that your employer covers you under a group mediclaim but generally the SI of such policies is very low. This amount seems to be insufficient in today's scenario where the cost of treatment is increasing every year.

— Most of the group mediclaim policies has clauses of co-pay and deductibles built in and due to these the insured has to pay from his pocket.

— There are times when you change job and then you get covered under a new policy. As a result of this insured losses on his pre-existing benefit that he has accrued over the period.

— There is always a time gap between joining a new job when the individual and his family is not covered. This makes them susceptible to risk situation



— The insured might even think of starting his own business and this he and his family will no longer be covered under any insurance policy.

I am healthy. Why should I take health insurance?

Insurance cover is always available for uncertain event; once we suffer from any disease it is difficult to take coverage for such disease. Life is full of uncertainties we do not know when we will be suffer from diseases and accident so, it is better to take health insurance when we are healthy. When we are healthy we have number of choices available and we can choose the best and affordable plan for us.

I do not believe in taking health insurance instead of that I prefer in creating my own fund.

It is good to create a fund but once we suffer from diseases then our fund will last. Whereas in health insurance if we availed total sum assured in one policy year then again in next policy year same sum assured is available to us even if we suffer from major diseases. If we see the yearly premium of health insurance it is ranging from 1% to 3% of sum assured which is negligible. We also get the tax benefit on premium paid for health insurance.

I have not paid premium for some time. Can I revive my policy?

For a regular premium paying policy, premium has to be paid within 30 days of the due date (15 days if the mode selected is monthly). The insurance company provides a grace period during which you can pay the premium and keep the policy in force. If the premium has not been paid within the grace period, the policy is considered lapsed.

Insurance companies offer various schemes that facilitate the process of reviving lapsed policies. A few are mentioned below -

• Paying all the arrears of premium and the interest for the same period can revive the policy. In certain cases, the company may offer installment revival schemes, where you pay a part of the arrear along with the regular premium, and the balance of the revival amount is paid in instalments spread over a year of two years.

• Under another scheme, a money-back policy can be revived by using the survival benefit under the policy (the money receivable from the insurance company at regular intervals) to pay premium plus interest. (If the survival benefit amount is lower than the revival value, you have to pay the shortfall. If it is higher, you receive the excess amount.) 

I have not paid premium for some time. I want to discontinue my policy. Do I get anything back from the insurance company?

The policy holder may get a proportion of the premium back based on two conditions. The insurance company gives an option of grace period during which you can pay the premium and keep the policy in force.
If the policy is been less than 3 years old since you purchased your policy and not paid premium, then you may not receive any money back from the insurance company.
If you have paid premium for more than 3 consecutive years, you will receive a proportion of the premium paid; depending upon the assured sum and the accrued bonus if any. However, the surrender value will vary by company and policy.
The surrender value depends on factors like type of policy, amount of premium, policy term, number of years for which the premium has been paid and accumulated bonus.

I want to save tax and plan for my 1-year old child's higher education. Which is the good insurance policy for this?

Generally, you will find people opting for a child's insurance policy in such cases. However, this is not a very good choice.

The returns from an insurance policy are usually poor as compared to pure investment products as they have higher charge-structure. Second, they offer very little diversification. Third, the flexibility to change is also quite low. Therefore, the normal moneyback, endowment, or ULIP type of an insurance policy is preferably avoidable.

To cover for any unfortunate eventuality, you should ideally be buying a term insurance policy. This takes care of the 'protection aspect'.

To get good returns with tax saving, presently the PPF (8% assured and tax free returns, 15-year lock-in) and ELSS funds (100% equity, 3-year lock-in) are the best tax saving products.

Since your time horizon is long and assuming you have a reasonable risk appetite, you can invest about 50% money each in PPF and ELSS. This will give you tax saving under Section 80C. Further, it will also help you to create wealth for your child's higher education 16-18 years later.

If I already have an e IA, how do I buy a new policy in electronic form?

Once you have opened an e Insurance Account, it is quite simple to buy a new policy in electronic form. You just need to quote your unique e IA Number in your new insurance proposal form, with a request to issue policy in electronic form. Since KYC documents had already been submitted and verified when you opened your e IA, the Insurer will not do KYC again, provided there has been no change to your KYC details, making the process simpler and convenient for you.

If I get heart attack, cancer, stroke will I get covered in a health Insurance policy?

Yes, all these would be covered under health insurance if it has not happened as a result of any pre-existing disease. All the pre-existing diseases would be covered after 4 continuous years of coverage.

If there are problems with claims what can I do?

First you should write to the company and give them sufficient time to respond suitably. If they don't respond, or it is not a response satisfactory to you, then you can approach the appropriate judicial channel. For complaints relating to personal insurance covers upto a value of Rs.20 lakh, you may approach the Insurance Ombudsman in your area.

The Ombudsman has a technical team that will go into the merits of your case and give an award) If you are unhappy with the outcome with the Ombudsman you still have recourse to consumer courts.

The IRDA also has a Grievance Cell.

Is it compulsory for all Insurance Companies to offer electronic policies?

Yes. It is the policy holder's prerogative to opt for a policy in electronic form. If a policy holder wants his/her policy (either new purchase or existing) in electronic form, then the Insurer is bound to fulfill his / her requirement.

The choice of a Repository for opening an e IA is the prerogative of the policy holder and hence all Insurance Companies will need to work with all the Insurance Repositories.

Initially, repository service will be available for life insurance only; over time, health and general insurance (personal lines only) will also be brought within the ambit of repository services.

Is it compulsory to issue policies in only electronic form? (i.e. is dematerialization of insurance policies compulsory, as in the case of shares?)

No, it is not (yet) compulsory to issue insurance policies only in electronic form.

Policy holders can choose the form in which they want their policies issued - paper or electronic.

On what basis is claim paid?

In indemnity policies, the upper limit of a claim is the sum assured and this usually applies for the period of the policy. Certain policies, however, allow for reinstatement of the Sum Insured by payment of proportionate premium for the remaining period of the policy. The actual claim will be the actual extent of financial loss as validated by documents like bills. If the property is underinsured, the insured shall bear a rateable proportion of the loss. There can be more than one claim in the policy period but the sum assured is usually the limit for the policy period unless reinstated.
Nowadays health insurance policies - which cover hospitalisation costs - have also a cashless settlement of claims. That is, you don't have to pay for the treatment at the hospital and then make a claim for reimbursement of the expenses. The insurance company has a service provider called the third party administrator (TPA) health services, who liaises with the hospitals and directly makes the payment for your treatment as per the terms of your policy and coverage.

Should I buy a life insurance policy even if my employer has insured me in a group insurance scheme?

It is always sensible to buy an individual life insurance policy because
a. The amount of insurance covered by your company may not be a very large cover
b. If your employer decides to cut cost then you may no longer be covered
c. If you quit the company then you may no longer be insured
d. Age also plays a role. The premium goes high as you start getting older.

Should I take Life Insurance?

A person who have dependents (especially if they are the primary provider) or significant debts that outweigh ones assets, then you need insurance to ensure that your dependents are looked after if something happens to you.

However, buying life insurance doesn't make sense for everyone. If you have no dependents and enough assets to cover your debts, survivor living expenses, outstanding life goals and the cost of dying (funeral, estate lawyer's fees, etc.), then insurance is an unnecessary cost for you.

Should I use insurance as an investment?

The primary objective of taking an insurance policy is to insure you and should be looked as an investment tool only as the secondary objective. You could use some of the insurance policies as means of investment. There are various policies offered by the insurance companies. These policies offer a fixed guaranteed rate of return or a market-linked rate of return.

There is no return under Term Plan then why should I take Term Plan?

Remember that nothing is free of cost. Even if you take ULIP plans, Money Back Plans, Endowment Plans or Whole Life Plans every plan attracts mortality charges which you have to pay. If you take term plan then in very small amount you can take higher sum assured.

What are the basic elements of Life Insurance?

The two basic elements of life insurance are Risk coverage (i.e. Term Insurance) and savings for the future (i.e. Pure Endowment)

What are the benefits of group life insurance?

This scheme provides insurance coverage to a group of people under one contract. These schemes are provided for employees, associations, societies, etc. Group insurance are more affordable than other individual insurance plans and also beneficial to those who cannot afford individual life insurance.

What are the benefits of holding Insurance Policies in electronic form?

There are multiple benefits in holding insurance policies in electronic form under a single eInsurance Account (e IA). These benefits include:

a. Safety: There is no risk of loss or damage of a policy as may happen with paper policies; the electronic form ensures that the policies are in safe custody and can be easily accessed when needed.
b. Convenience: All insurance policies, be it life, pension, health or general, can be electronically held under a single e IA. This means all details of all policies are available in a single account (place). The details of any of the policies can be accessed at any time by logging on to the online portal of Insurance Repository. Premium for all the policies can be paid online and many service requests or complaints can be logged at this website.
c. Single Point of Service: All service requests in respect of e IA or any of the electronic policies held under the e IA can be submitted at any of the Insurance Repository service points - there is no need to go to the offices of individual insurance companies for service.
d. Less Paper work: When you want to buy a new electronic insurance policy under an existing e IA, you don't need to go through KYC verification all over again, if there are no changes to your KYC details already recorded in your e IA. Further, if you want to make any changes to your personal details like address or contact no, it is enough to change the details in your e IA with the Insurance Repository by submitting a single request - the Insurance Repository, in turn, will inform all the insurance companies with whom you hold electronic policies, about the changes.

What are the documents required to open an eIA Account?

ID Proof:

• AADHAR CARD or
• PAN Card

Address Proof:

A copy of any one of the following documents should be submitted as proof of address; the original of the relevant address proof should be produced for verification by the Insurance Repository:

I. Ration Card
II. Passport
III. Aadhar letter
IV. Voter ID card
V. Driving license
VI. Bank Passbook (not more than 6 months old)
VII. Verified copies of

a) Electricity bills (not more than 6 months old),
b) Residence Telephone bills (not more than 6 months old) and
c) Registered Lease and License agreement / Agreement for sale.

VIII.Self‐declaration by High Court and Supreme Court judges, giving the new address in respect of their own accounts.

IX. Identity card/document with address, issued by

a) Central/State Government and its Departments,
b) Statutory/Regulatory Authorities,
c) Public Sector Undertakings,
d) Scheduled Commercial Banks,
e) Public Financial Institutions,
f) Colleges affiliated to universities; and
g) Professional Bodies such as ICAI, ICWAI, Bar Council etc. to their Members

What are the Tax benefits applicable to me if I invest in a Life Insurance Policy?

If you invest in life insurance policy, you will get deduction under Section 80 C of the income tax act, 1956 of the premuim paid within overall limit of Rs. 1.50 lacs per year along with other eligible items like Provident fund, EPF, NSC, ELSS, tuition fee, repayment of home loan etc. However in case the amount paid towards life insurance premium exceeds 10% of the amount of the sum assured, you will get the deduction only upto 10% of the sum assured. Moreover When the maturity proceeds are received the same will be fully exempt if the premium paid on such policy did not exceed 10% of the sum assured in any of the year.

What are the tax benefits on Health insurance policy? any additional tax benefits in proposed DTC?

Individual can claim maximum benefit of Rs 15,000 under sec 80 D and this can go upto Rs 20,000 in case coverage is opted for senior citizens.

What are the various types of insurances?

The insurance sector is classified into Life and Non-life or General insurance
Under Life insurance, an individual's life is covered. In simple terms, the insured's nominee will receive a certain amount of money from the insurance company if the insured individual dies within a specified time.
Under General Insurance, everything is covered. Thus, an individual could insure himself for his health, property, vehicle, travel, office, shop, education and even pets.

What coverage available under health insurance plan?

Hospitalization expenses for treatment of disease and accident for min of 24 hrs, pre and post hospitalization expenses generally upto 30 days are paid max upto sum assured. Hospitalization expense includes Room Rent, Medicine Expenses, Doctor Fees, Diagnostic Expenses and other medical expenses related to treatment.

Expenses which are not paid by insurance company are registration charges, service charges/ nursing care chares, personal expenses such as telephone, fax, refreshment etc., taxes levied by government from time to time and other expenses which are not related to treatment.

What do I do if I need to make any changes to my policy or e IA? Do I submit a request to the Insurance Company or to the Insurance Repository?

It is best to submit ALL requests in respect of either your e IA or any of your electronic policies to the Insurance Repository. If the changes are with respect to an account level detail (like address or phone number), the Insurance Repository will execute the change after the necessary KYC verification, if any. The Insurance Repository will then intimate the changes to all the Insurance Companies whose policies are held in that e IA, so that the changes are effected in all the policies, in one go (so there is no need for the policy holder to approach the various insurance companies individually for the changes).

In case of any changes at the policy level, the Insurance Repository is expected to forward the request to the respective insurance company and ensure that the same is executed and reflected in the electronic policy held with the Insurance Repository.

What do I get if I insure?

The insured person will get satisfaction that his family is completely insured in case something happens to the major earning member of the family. His family will get assured sum after his death. In monetary terms, you can claim tax-deductions under section 88.
Premium paid towards a life insurance policy, up to Rs 1,00,000, can be claimed as a tax-deduction u/s 88.
Survival benefits or Interim benefits, i.e. money received during the term of a money back policy are tax-free.
Maturity benefits or the amount received at the end of the term of a policy is also tax-free.
Proceeds of a life insurance policy, received by the nominee, are tax-free.
For a Health insurance policy, you can claim the premium amount, up to a maximum limit of Rs 10,000 u/s 80D.
Moreover, the money you receive from the insurance company, during the term of the policy and/or upon maturity, is tax-free.

What do I get if I survive the term of the policy?

The policy holder may not receive any money from the insurance company upon maturity in case he survives the policy term. However, some insurance companies offer a term policy with return of premium amount or the sum assured upon maturity. Some companies also offer policies along with bonus or profits and policy holder upon surviving the term of the policy would receive the sum assured along with the accumulated bonus.

What do I need to pay to maintain electronic policies in my e IA? And what is the fee for converting my existing paper polices into electronic policies?

All the services provided by Insurance Repositories are absolutely FREE of charge to policy holders. Policy holders need not pay anything extra to buy an electronic policy or to convert an existing paper policy into electronic form. Similarly they need not pay anything to avail of any services from the Insurance Repository, including online premium payment and services at the respective online portal.

What does my family get on my death?

If death of the policy holder takes place during the term of the insurance policy, then the nominee designated by the policy holder receives the assured sum plus the accrued bonus, if any.
If the policy is along with the bonus policy or participative profits, the bonus is payable to the nominee in addition to the sum assured but only for the number of years the premium has been paid.
If the policy has an accident rider and death takes place due to an accident, then nominee may receive double the sum assured.
However, if death takes place after the policy has matured, then the nominee does not receive anything from the insurance company. There are certain policies which offer to cover the insurer for the sum assured or a part of the sum assured, even after the policy has matured.

What is "Waiver of Premium"?

Waiver of premium is an additional clause in an insurance policy which waves the premium of policyholder for the time he is seriously ill or disabled. This feature is however optional and available at an extra cost.

What is a child plan?

As a parent, you wish to provide your child with the very best that life offers, the best possible education, marriage and life style. Children's plan helps you save so that you can fulfill your child's dreams and aspirations. These plans go a long way in securing your child's future by financing the key milestones in their lives even if you are no longer around to oversee them.

What is a Guaranteed Surrender Value?

You can surrender the policy for cash only after the premiums have been paid for at least three years. The minimum surrender value allowed is equivalent to an assured percentage of the total amount of premiums paid by the holder excluding the premiums for the first year and all extra premiums for riders.

What is a medical examination when buying insurance?

An individual buying insurance for a sum of Rs 600,000 and above has to undergo a medical examination. This is done by the insurance company since it needs to ensure that the prospective client is healthy. Also the company wants to verify that the objective of buying a policy is to insure against a risk and not to deceive the company

What is a Money Back plan?

Money back life insurance plan provides for periodic payments during its tenure, it gives back money to policyholder at different points in time usually 4-5 years. The investments done are similar to endowment plans. Money back policy will give you a fixed percentage of the sum assured after 4 or 5years. For example, if the policy is of 20 years, then company will pay 15% after every 4 years and the remaining 40% on maturity with accumulated bonus. The policy terms and payback schemes will vary from company to company.

What is a Whole Life insurance product?

Whole life insurance risk covers the death of the insured, whenever it may happen. It means that there is no fixed term under whole life insurance. Most policies provide a dividend to the policy holder which helps with retirement.

There are two variations in the whole life insurance products i.e.

Pure Whole Life Insurance: - where premiums are payable continuously throughout the life of the insured till death. Risk coverage is for the entire duration of life and the life insured amount is paid on the happening of the death of the insured at any time.
Limited Payment Whole life Insurance: - where premiums are paid for a limited and shorter period and the option of the insured or till death if earlier. Risk coverage is however throughout the life of the insured.

What is an e Insurance Account (e IA)?

A policy holder needs to open an e Insurance Account (e IA) with one of the Insurance Repositories to be able to buy and keep policies in electronic mode. An individual can have only one e IA with any one of the Insurance Repositories. Once an e IA is opened, the account holder can buy and keep all his electronic insurance policies - be it life, pension, health or general - issued by various Insurers under this single account.

Each e IA will have an unique e Insurance Account number; the account holder should quote this number in all correspondence with Insurance Repository. Each account holder will also get an unique Login ID and Password to access his account and electronic policy details online on the insurance repository website.

What is an Insurance Repository?

An Insurance Repository is a facility to help policy holders buy and keep insurance policies in electronic form, rather than as a paper document. Insurance Repositories, like Share Depositories or Mutual Fund Transfer Agencies, will hold electronic records of insurance policies issued to individuals and such policies are called "electronic policies" or "e Policies".

What is Deferment Period?

Period between the subscription date of an insurance-cum-pension policy and the time at which the first installment of pension is received is called as deferment period.

What is Endowment product?

The insurer will receive a lump sum amount either at death during the term or at maturity of the term.

What is Fund Value and how it is determined?

The value of policy is the fund value. In simple terms, it is the total value of units that you hold in funds.
Fund Value = (Number of equity fund units x NAV of equity fund) + (Number of bond fund units x NAV of bond fund) + (Number of money market fund units x NAV of money market fund)

What is general insurance?

Insuring anything other than human life is called general insurance. Examples are insuring property like house and belongings against fire and theft or vehicles against accidental damage or theft. Injury due to accident or hospitalisation for illness and surgery can also be insured. Your liabilities to others arising out of the law can also be insured and is compulsory in some cases like motor third party insurance.

What is Grace Period?

It is a provision given to the policy holders to pay premium in the next 15-30 days since he fails to pay it before due date. This period of 15-30 days is called as grace period.

What is Group Life Insurance?

This scheme provides insurance coverage to a group of people under one contract. These schemes are provided for employees, associations, societies, etc. group insurance are more affordable than other individual insurance plans and also beneficial to those who cannot afford individual life insurance.

What is insurance?

We face a lot of risks in our daily lives. Some of these lead to financial losses. Insurance is a way of protecting against these financial losses. For a payment (premium), an insurance company will take the responsibility of compensating your financial losses.

What is Life Insurance?

Life insurance policy gives you the protection against financial losses resulting from the insured individual's death. It provides you and your family the financial security and certainty to deal with the aftermath of any unfortunate events.

The Cost of Medical Coverage for Expatriates in America

Premiums, or the cost of the medical coverage, are based on some factors including country of origin, age, medical history, etc. It is advised to have more comprehensive insurance for US medical coverage because it can cost a lot, but the costs of not having it can be much higher. For example, the tests and scans doctors often run are costly and typically not covered by budget medical insurance plans.

All U.S. citizens living in the United States are subject to the individual shared responsibility provision as are all permanent residents and all foreign nationals who are in the United States long enough during a calendar year to qualify as resident aliens for tax purposes. This category includes nonresident aliens who meet certain presence requirements and elect to be treated as resident aliens

Travel Medical Insurance for Visitors to the US

If you are an expatriate living in the US, additional medical coverage should be purchased for the period that you will be in the country. You will want to ensure this coverage protects you in case of an accident, a medical emergency as well as repatriation. You should investigate if you will need this insurance before entering the country and if the insurance needs to come from your home country, the U.S. or both!

For periods of less than one year in the US, a travel medical plan may be enough to cover your needs. For younger travelers wanting basic emergency medical insurance (instead of comprehensive major medical cover), a travel medical plan will work well. Most travel medical insurance plans provide coverage for accidents or illness, saving you from large medical bills if you require a visit to the doctor or hospital while in the U.S. as well as give you access to universal pharmaceutical care and translation services, should they be required

read : Our Top 10 Best Life Insurance Companies In The United States in 2018-2019
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