I am paying a quarterly premium of Rs 3,328 for a wealth plus health plan since 2008. I have completed the 3 year lock in period. Should I continue with this policy as I am not seeing a good growth? Ramakrishnan,Mumbai You should keep your health insurance and savings separate. Instead take up two different products health insurance and an investment from any insurer. When you take a health plus wealth plan,you try and seek benefits of two plans and the charges deducted are a little higher than they would have been in a ULIP,hence you end up losing a little more. On the other hand such plans do not cover your daily OPD needs or less than 24 hours hospitalisation,which you may need for cases such as cataract,or minor surgical procedure,along with a host of other benefits like pre-hospitalisation expenses,ambulance charges,etc. If you cancel current policy you will lose the advantage of pre-existing benefits. Also health policy from life companies dont enjoy portability benefits. In-case you are young,I will suggest start a new health policy and may be take another investment plan to continue your saving. What all information does an insurance company checks when a claim is made by nominee of a policy holder and how do they ensure verification of the information? Manjula Sharma,Delhi An insurance company checks the causes of the death through medical reports and the death certificate submitted to the company. The insurance company,through the medical reports,will check whether the cause of the death was already known to the applicant before purchase of the policy and were they hidden from the insurance company. If it is found that some information was hidden from the insurer,then the claim payment can get difficult. In case I meet with an accident that leaves me disabled and unable to earn,would my term insurance policy cover me? Manas Verma,Lucknow You can club your term insurance policy with an accidental death and disability rider. These give you a one-time lump-sum amount along with the term insurance benefit,in the event of an accidental death or an accident leading to permanent disability. In case you are looking for a monthly payout,many companies offer a rider known as Family Income Benefit which ensures total financial protection for your loved ones. In-case of death or accidental total permanent disability,a guaranteed monthly income of 1 per cent of the sum assured (12 per cent per annum) is paid till the end of the policy term or at least for a period of 10 years,whichever is higher. Moreover,all future premiums are waived off. The expert is Akshay Mehrotra,CMO, PolicyBazaar.com For your personal finance queries please email at,expressmoney@expressindia.com
