{"id":3588,"date":"2016-11-29T11:21:04","date_gmt":"2016-11-29T11:21:04","guid":{"rendered":"https:\/\/securenow.in\/blog\/?p=3588"},"modified":"2024-03-19T12:22:21","modified_gmt":"2024-03-19T12:22:21","slug":"individual-life-insurance-is-relatively-more-economical-than-joint-life-plans","status":"publish","type":"post","link":"https:\/\/securenow.in\/insuropedia\/individual-life-insurance-is-relatively-more-economical-than-joint-life-plans\/","title":{"rendered":"Individual life insurance is relatively more economical than joint life plans"},"content":{"rendered":"
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Published in Mint on Nov 25, 2016, Written by Abhishek Bondia<\/strong><\/p>\n

I want to extend my life insurance coverage to include my wife. Should I go for it or would it just be better to get another plan instead?<\/b><\/h2>\n

\u2014Atul Shandilya<\/b><\/i>
\nYes, you should get a separate plan for your wife. There are limited options available for joint life plans.
\nThe individual plans<\/a> are relatively more economical in terms of premium and are easier to administer.<\/p>\n

I have lost or misplaced my policy docket. What should I do?<\/b><\/h2>\n

\u2014Tushar Kapadia<\/b><\/i>
\n<\/b>Inform the insurer about the loss immediately. Then request a duplicate policy copy.
\nThe rights and privileges of the duplicate copy are the same as that of the original policy. The process of getting a duplicate policy varies by insurer. Sometimes, the insurer could ask you to submit an indemnity bond on stamp paper and pay the administrative charges for the duplicate copy of the policy.
\nSome insurers may ask you to place an advertisement in a local newspaper and also submit proof of its publication to the policy-issuing office. Increasingly, insurers are simplifying the process of replacing the lost docket. A few insurers automatically create an insurance depository account, so that an e-policy is always available.<\/p>\n

When choosing a life insurance cover, how important is the reputation of the insurer?<\/b><\/h2>\n

\u2014Hariharan Neogy<\/b><\/i>
\n<\/b>In the case of a term insurance policy<\/a>, the claim has to be filed by your nominee. You will not be there to present your case. So, you would want to ensure that the claim settlement process is hassle-free for your nominee. That\u2019s why the claim settlement track record of an insurer gives critical information about the insurer\u2019s approach toward claims. I recommend insurers with a claim settlement record of 90% or more.<\/p>\n

I missed paying a premium on my term plan for a few months. Can I start paying again? Would there be any charges?<\/b><\/h2>\n

\u2014Harsh Raut<\/b><\/i>
\n<\/b>If you do not pay your premiums within the grace period after the due date, typically 30 days, the policy is considered lapsed. You can revive a lapsed policy. For the revival, you need to pay the unpaid premiums along with interest. Generally, if the revival is done within 6 months of lapsation and the sum assured is low, then a simple health declaration is also required.
\nIn other cases, depending on the sum assured, the insurer may conduct fresh medical underwriting.<\/p>\n

What is a fund switch? How many switches can I get?<\/b><\/h2>\n

\u2014Rajesh Shah<\/b><\/i>
\nA unit-linked insurance plan (Ulip) works on underlying funds that have varying levels of equity and debt exposure. At the time of policy inception, the allocation of money among different funds is fixed. Later, money can be moved from one fund to another.
\nThis money movement is called \u2018switch\u2019. You also have the option of specifying whether future premiums only should be invested differently or whether current funds accumulated should also be transferred.
\nTechnically, most plans allow unlimited switches, albeit with a charge. Several plans allow up to four free switches a year, while some may allow unlimited free switches.<\/p>\n

What is the best portfolio strategy to adopt for a Ulip?<\/b><\/h2>\n

\u2014Rajat Kukreja<\/b><\/i>
\nThe portfolio strategy for a Ulip depends on one\u2019s risk appetite. You can choose a combination of funds with equity and debt exposure. The common principle is to invest more in equities if you are young. As you grow older, go for debt funds as they are safer and less volatile. Several Ulips offer an automatic portfolio re-balancing facility based on the pre-set allocation of equity and debt linked to one\u2019s age.<\/p>\n

Can I avail of a loan on my life insurance policy? Is this a special benefit for specific types of plans? I got an SMS stating loan facility is an exclusive benefit for a life insurance plan.<\/b><\/h2>\n

\u2014Arvind Swamy<\/b><\/i>
\nTraditional endowment products that carry a surrender value offer a loan facility.
\nA standard term life insurance policy<\/a> does not carry any surrender value, hence does not have a loan facility.
\nUlips carry a surrender value but do not offer loans. The insurer typically offers the loan for amounts less than the surrender value of the policy at the time of application. Endowment plans typically deliver a return of 2% to 4%. Loans are extended to policyholders at higher rates. Don\u2019t invest in endowment plans just to avail of a loan.<\/p>\n","protected":false},"excerpt":{"rendered":"

Published in Mint on Nov 25, 2016, Written by Abhishek Bondia I want to extend my life insurance coverage to include my wife. Should I go for it or would it just be better to get another plan instead? \u2014Atul Shandilya Yes, you should get a separate plan for your wife. There are limited options […]<\/p>\n","protected":false},"author":4,"featured_media":3589,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_lmt_disableupdate":"no","_lmt_disable":"no","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[383,319],"tags":[42,81,166,534,600],"class_list":["post-3588","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newspaper-columns","category-media","tag-life-insurance","tag-term-insurance","tag-general-insurance","tag-individual-insurance","tag-buy-general-insurance-online"],"acf":[],"modified_by":"Chetan Sharma","_links":{"self":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/3588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/comments?post=3588"}],"version-history":[{"count":8,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/3588\/revisions"}],"predecessor-version":[{"id":28971,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/3588\/revisions\/28971"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/media?parent=3588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/categories?post=3588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/tags?post=3588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}