INSURANCE POLICIES AND YOUR QUERY

Will my returns go up after Irda’s cap on Ulip charges comes into effect? There are certain products, which already follow these guidelines on charges, and certain others, which do not follow them. It differs from product to product. Companies not following these guidelines for their products would have to lower the charges suitably. The capping of Ulip charges would offer better value to customers. The [...]Will my returns go up after Irda’s cap on Ulip charges comes into effect? There are certain products, which already follow these guidelines on charges, and certain others, which do not follow them. It differs from product to product. Companies not following these guidelines for their products would have to lower the charges suitably. The capping of Ulip charges would offer better value to customers. The objective of these guidelines is to reduce expenses, which are charged to customers, thus this is a positive step in principle. I foresee about 30-40 percent of the regular premium Ulips undergoing modifications to increase benefit for customers. Is it advisable to buy riders such as term, accidental death benefit or critical illness, over and above my basic life insurance policy? Or does it make more sense to buy separate policies? Riders are benefits that can be clubbed with a basic life insurance policy for which you need not buy a separate policy. This will help in managing one’s policy better than taking these covers separately. There are certain specific riders, which can be availed only through a life insurance policy. They can take care of not only funding the policy even in the case of total disability of the policyholder, but also provide a stipulated sum to the beneficiary till a certain period. These advantageous features in the riders make them indispensable and provide a foolproof financial protection to the buyer. How is a women-specific insurance plan different from a normal health cover? How does it fare over women-specific health policy riders? A women-specific insurance plan is devised keeping in mind the specific risks that only women are prone to unlike men. This gives them some unique advantages as a specific segment. It is always better for a woman to choose a women-specific health insurance cover or riders as they would be covered for the unique risks that they are prone to such as congenital birth defects, complications of pregnancy such as ectopic pregnancy, etc, which may not be covered in normal plans. Moreover, certain insurers also offer discounts on premium for women-specific policies. Does it make sense to buy a Ulip now, when the Sensex is on a 15-month high? This is often a dilemma faced by everyone and, unfortunately, there is no right or wrong decision. At the outset, Ulips are best suited for those who want transparency, life protection and market-related returns from their investment over a long period. It is immaterial at what point of time one subscribes to a Ulip so long as the investment objective is mid to long term. SOURCE:BUSINESS STANDARDnumber of view: 605

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