Krutiika Gala

Married Women Property Act, 1874 The Married Woman Property Act (MWP)  can protect the life insurance death claim benefit from creditors and ensure that your wife and children are secured. Lack of awareness and loss of control prevents insured from going for this option. Find out how you can benefit from it. Ramesh was running business on borrowed capital. After his sudden demise, his creditors did their best to go after Ramesh’s assets. Luckily for his wife, Ramesh had purchased a term life insurance policy choosing the option of Section 6 of the MWP Act. It ensured that Ramesh’s wife got the death benefit. But many are not so lucky due to lack of awareness of such a feature available with your life insurance policy. Today, buying on credit has become common place. As a responsible citizen you should make payments during your lifetime on any loan, credit card, outstanding debt payment, etc. but, it also makes sense to ensure that your wife and children really get the death benefit from your life insurance policy. Section 6 of the MWP Act allows an individual to buy a policy for himself under the Act and create a trust for the same. There is no need for creating a trust under the Trust Act. The beneficiaries (wife and/or children) can also be trustees. Even a married woman being a widow can buy MWP policy on her name with her children as beneficiaries. A resident Indian being a married man, can take an insurance policy under the MWP Act. A widower or a divorcee – in such a scenario can name their children as beneficiaries. The procedure is simple, but it has to be done at the time of buying the policy. At the time of making the application, a separate form has to be filled by the proposer for it to be covered under MWP Act. The form seeks details of the beneficiaries, the share of the benefits that are to be accrued to them and the trustees. The beneficiary under the MWP Act in life insurance could be : The wife alone The child / children alone (both natural and adopted) Wife and children together or any of them Each policy under MWP Act is considered as a separate trust automatically. At the time of the proposal, the proposer has to mention the names of the beneficiaries. Proposer may also mention the names of trustees. If the beneficiary is a minor then the appointment of the Trustee is compulsory. Trustee cannot be a minor or a Hindu Undivided Family. Also, the proposer can neither be the beneficiary nor the Trustee. The Beneficiary and the Trustee can be the same person. The trustees can be the wife and/or one or more of his adult children. The policy holder has the option to change the trustees at any point in time. However, the beneficiaries of the plan once declared cannot be changed. In case of divorce, the wife continues to remain a beneficiary and cannot be changed. Advantages of MWP Act. Financial security of wife and/or children. Beneficiaries are financially secure in case of debt accumulated by policyholders. Beneficiaries are financially protected against creditors claiming benefits for repayment of loan or debt. Beneficiaries are financially stable in case joint family property goes into dispute. They are also protected from greedy relatives. In case a policyholder, who is the sole breadwinner in the family, passes away unexpectedly, beneficiaries are not left penniless and are safe enough to maintain their living standards. What are the drawbacks? The policyholder of a MWP policy loses all control over the policy with the exception of paying premiums. The policy becomes a trust property. (wife and/or children) There can be no changes to the policy without the consent of the beneficiaries. The beneficiaries of the plan, once declared, cannot be changed at any time. The proposer cannot take any loan or assign the policy to another person. The policy maturity, surrender value will go to the trust (and hence the beneficiaries only).  

Top-up Plan & Super Top-up Plan in Health Insurance The value of health is vital for every human on Earth.  ‘Health is wealth’ is a world-famous proverb concerning health. Health is the biggest Wealth in Life. There is strong perspective that, unless a person is Healthy, it’s difficult for him/ her to enjoy. Money doesn’t have a value unless it is really enjoyed. Simply the Possessions of money or things don’t make an individual Rich, It’s the Good Health. Most of us go about our lives without securing our medical expenses in totality. In my experience, the average medical cover opted or provided by an employer is generally in the range of ₹3 Lakhs to ₹5 Lakhs. Do you really think this cover is sufficient? What if the claim amount is more then the cover amount? Can you afford to pay the medical expenses out of your pocket? Do you agree that the medical expenses are increasing at a very fast rate every year? Also, it is not practically possible for everyone to increase the premium of their existing plan, or buy another Health Insurance policy. Needless to say, there’s a need for higher coverage, and that’s where top-up or super top-up plan comes in. Top Up Plan and Super Top Up Plan: A top up plan offers additional coverage to the insured who already have an existing medical insurance plan without the need to buy an additional policy. This plan covers expenditure that may arise out of a single illness; this is over and above the existing base cover. A super top plan offers medical cover when a single claim does not go beyond the threshold limit of the insurance cover but multiple claims do. A super top plan would consider the total of all hospitalisation bills that are submitted, regardless whether they are for a single illness or multiple ones. Take an Example of Mr. Z. Mr. Z has basic health insurance of ₹5 Lakhs. In case Mr. Z buys a top-up plan of ₹ 10 Lakhs with ₹ 5 Lakhs Deductible or he buys a Super top-up plan of ₹ 10 Lakhs with ₹ 5 Lakhs Deductible. What happens if there is a Single Claim of ₹14 Lakhs Top-up Plan Basic Health Insurance plan will cover ₹5 lakhs. Top-up plan will cover the remaining ₹9 lakhs as it exceeds deductible. Super Top-up Plan Basic Health Insurance plan will cover ₹5 lakhs. Super Top-up plan will cover the remaining ₹9 lakhs as it exceeds deductible. Two Claims of ₹4 Lakhs each Top-up Plan Basic Health Insurance will cover for the ₹4 lakhs of first claim and ₹1 lakh of second claim. There will be no claim pay-out from Top-up Plan, as the individual amount of the claim does not exceed ₹5 lakhs. Super Top-up Plan Basic Health Insurance will cover for the ₹4 lakhs of first claim and ₹1 lakh of second claim. Super Top-up will cover the remaining ₹3 lakhs. Two Claims one claim of ₹8 Lakhs and another claim of ₹4 Lakhs Top-up Plan Basic Health Insurance will pay ₹5 lakh from first claim Top-up Plan will pay the remaining ₹3 lakhs for the first claim. No claim is payable for second claim as it does not exceed the deductible limit. Super Top-up Plan Basic Health Insurance will pay ₹5 lakh from first claim Super Top-up will cover the remaining ₹3 lakhs for the first claim and ₹4 lakhs for the second claim. When to opt for a Top-up Health Insurance Policy: Individuals can opt for a top-up or super top-up policy under the following circumstances. When their regular health insurance policy doesn’t offer adequate protection. In such cases they can choose one of these plans to enhance their protection. When they want to increase their cover without having to pay higher premiums. The premium for a top-up or super top-up plan is cheaper than the premium for a normal plan with the same cover, helping them save money. How to decide? Both of these plans have their own benefits. In the long run, a super top-up plan is a cost-saver and offers coverage for wide range of illnesses. It is especially beneficial for senior citizens who have frequent medical expenses that can be covered due to cumulative coverage. However, factors such as your premium outgo, budget and medical history should be considered before opting for either plan. FAQ’s Is it necessary to have a regular health plan? It is not mandatory to have an existing regular or group Mediclaim to buy a top-up or a super top-up plan. Is it necessary to buy a top-up plan or a super top-up plan from the same company? No, it is not necessary. Why are top-up plan or super top-up plan cheap? The deductible limit makes these plans cheaper when compared to regular plans. Higher the deductible threshold limit, lower the premiums of the top-up or super top-up plan. Can I top-up a family floater policy? Yes, top-up and super top-up policies come as individual and floater plans. No claim bonus & top-up plans: If you have accumulated no claim bonus (for claim free years), top-up / super top-up plan will pay the claim amount over and above the regular plan’s sum amount plus no claim bonus amount. Top-up plans generally do not offer No Claim Bonus. Most of the top-up / super top-up plans work on reimbursement basis. They will pay the claim amount after the insurer gets the details of the medical bills, to access whether the policyholder has paid the deductible limit by himself or through any existing health insurance policy. Are there any top-up / super top-up plan for parents / senior citizen? Yes, some companies offer. IS there any income tax benefits on top-up / super top-up plan? Yes, the premiums paid on top-up / super top-up plan are eligible for Income deduction under section 80D. What are the important things to watch out before buying a top-up / super top-up plan? It is advisable to go through

Health Insurance All the below mentioned points will differ as per different plans and insurance service providers. In Patient treatment  Covers Hospital expenses for admission longer than 24 hours. Pre & Post Hospitalisation Medical Expenses incurred due to Illness up to 30 days or 60 days period immediately before and 60 days or 90 days or 180 days immediately after an Insured Person’s admission to a Hospital. Day Care Procedure Medical expenses for day care procedures where such procedures are undertaken by an Insured Person as an Inpatient in a Hospital for continuous period of less than 24 hours. In Patient AYUSH Hospitalisation Reimbursement of expenses for AYUSH treatment. Expenses for AYUSH treatment is considered only when the treatment has been undergone in a Government Hospital or in any Institute recognised by the Government and/or accredited by Quality Council of India/National Accreditation Board on Health. Domestic Road Emergency Ambulance Ambulance expenses incurred to transfer the Insured Person following an emergency to the nearest Hospital. Cover of Pre Existing disease 2 years , 3 years or 4 years depending on Insurance service provider. Reset Benefit Top-up plans that offer reset benefit allows for upto 100% reset of the sum insured once in a policy year. This option automatically comes into operation when the sum insured (including the accrued additional sum insured, if any) is insufficient because of previous, unrelated claims in the same policy year. Hospital Daily Cash Allowance per day for hospital stay of minimum 3 consecutive days or more up to a maximum of 10 consecutive days. Convalescence Benefit Some amount is provided once for each Policy year during Policy Period, in case of Hospitalisation of minimum 10 consecutive days or more. Critical Illness Critical Illness cover for specified critical Illnesses/medical procedures like Cancer of specified severity, open chest CABG, First heart attack, major organ/bone marrow transplant, permanent paralysis of limbs, Kidney failure requiring regular dialysis, end stage liver disease; subject to a maximum of 2 adults. Organ Donor Expenses Medical Expenses incurred in respect of the donor for any of the organ transplant surgery, provided the organ donated is for Insured persons, subject to a maximum of 2 adults. Value Added Services • Free health check-up coupon to Insured for every Policy Year, subject to a maximum of 2 coupons per year for floater policies. • Online Chat with Medical Practitioners • Specialist e-Consultation with One Follow-up session • Diet & Nutrition e-consultation What are the major Exclusions in the Policy Following is an indicative list of the policy exclusions. Please refer to the policy clause for the complete list. • Acupressure, acupuncture, magnetic and such other therapies • Unproven experimental treatment • Any expenses arising out of Domiciliary Treatment • Treatment taken outside the country • Cosmetic surgery • Venereal diseases or any sexually transmitted diseases • Dental treatment unless due to accident Waiting Period (a) Pre-existing diseases: Covered after 24 months or 36 after  months or 48 after Months depending upon the insurance provider. (b) Specific waiting period: First 24 months or First 36 months or First 48 months for specific Illness and treatment. (c) In case of hypertension, diabetes and cardiac conditions, the waiting period will be 90 days unless disclosed as pre-existing. (d) Initial waiting period: 30 days for all illnesses (except Hospitalisation due to injury). Payout Basis  • Cashless or Reimbursement of covered medical expenses up to specified Sum Insured as per the scope of cover. • Claim Service Guarantee • Cashless Facility available at network hospitals. Renewal Condition  (a) Maximum renewal age – There will be life-long renewable without any age restriction for the cover. However Premium at the time of renewal is subject to change with change in age band. (b) Grace Period – The renewal premium shall be paid to Us on or before the date of expiry of the Policy and in no case later than 30 days (Grace Period) from the expiry of the Policy. (c) Floater Benefit – The floater benefit under this policy is available up to lifetime. Renewal Benefits  (a) Cumulative Bonus (Additional Sum Insured) – An Additional Sum Insured of 10% of Annual Sum Insured provided on each renewal for every claimfree year up to a maximum of 50%. In case of a claim under the policy, the accumulated Additional Sum Insured will be reduced by 10% of the Annual Sum Insured in the following year. (b) Complimentary Health Check Up Coupons: One coupon per individual policy and two coupons per Floater policy will be offered. Cancellation  a) Disclosure to information norm: The policy shall be void and all premium paid hereon shall be forfeited to the company, in the event of misinterpretation, mis-description or non-disclosure of any material fact. b) One can cancel the Policy by giving  15 days written notice for the cancellation of the Policy by registered post, and then the Insurance service provider will refund premium on short term rates for the unexpired Policy Period. Day Care Centre Day care centre means any institution established for day care treatment of illness and/or injuries or a medical setup with a hospital and which has been registered with the local authorities, wherever applicable, and is under supervision of a registered and qualified medical practitioner AND must comply with all minimum criterion as under. i. has qualified nursing staff under its employment ii. has qualified medical practitioner/s in charge iii. has fully equipped operation theatre of its own where surgical procedures are carried out iv. maintains daily records of patients and will make these accessible to the insurance company’s authorized personnel. Domiciliary Hospitalisation Domiciliary Hospitalisation means medical treatment for an illness/ disease/ injury which in the normal course would require care and treatment at a hospital but is actually taken while confined at home under any of the following circumstances: i. The condition of the patient is such that he/ she is not in a condition to be removed to a hospital, or ii. The patient takes treatment at home on account of

Why Term Insurance..? Large cover at affordable rates and your premium remain fixed for the entire policy duration. Bills don’t stop when the pay check stops, Term Insurance helps during your uncertain tomorrow. In case of Permanent Disability due to accident, all future premiums are waived off, and the life cover continues for the remaining policy duration. This benefit comes in-built in your policy without any extra cost. Builds an asset the minute you contribute your first premium unlike other Financial Instruments. Term Insurance offers Financial Freedom, filling the absence of the bread winner due to uncertainty. Life stage benefit gives you an option to increase the cover after marriage. Additional premium will be calculated based on the increased life cover without any medicals and remaining policy term as per your age at the time of each such increase. Ensures the dignity of your family is not at stake. Terminal Illness are not only life threatening but can also spell financial ruin. This benefit helps you fight those illnesses by paying 100% of your life cover amount before death. Some policies cover aids as well. This benefit comes in-built in your policy without any extra cost. A powerful tool which helps in creating contingency fund in the need of the hour. Critical Benefit option gives full claim pay-out on the first diagnosis of illnesses like cancer, heart attack, kidney failure and many more. No hospital bills required. Future Premium burden gets reduced in case of payment under critical  illness, thereby savings which can be utilized for other priorities. Premium paid    and benefits received are eligible for tax benefits under section 80C and 10(10D). Accident Death Benefit Rider ensures your family need not liquidate the existing assets to meet emergencies but safeguarding at a very minimal premium. Your child has every right for a good education Term Insurance provides you the authorisation to ensure that right. Acts a Trust if there is an absolute assignment in the form of Married Woman Property Act (MWP Act). No authority is liable to attach this property in case of outstanding dues. Leave an Estate for the loved ones. Even if all your investments fail in your absence, the Death Benefit safeguards their future sustaining same same standard of living. To be underinsured is the greatest gamble you could take. If you lose, it’s not you but your family pays. Term Insurance protects your family from your debts. If you are businessman and keen for succession planning, Term Insurance assures your aspirations come true. You are worth much more than you think. Option to enhance Life Cover at important milestones because your family aspirations are your commitment. A perfect Tool to create Contingency Fund for partnership firms in case of demise of a Partner to settle the Partner’s Share. Great Tax Benefit Tool for partnership firms. Great Tax Benefit Tool for an organisation if opting Key Person Insurance for all the Key people. Addresses the need of Replacement Cost, should the key person or persons of an Organisation have insured and on their demise. Term Insurance offers peace of mind, dignity, respect, confidence and happiness. All in the same package with protection. Some points are subject to Rider availability in Term Insurance.

Understanding life insurance Insurance is a subject matter of solicitation’, which essentially means that insurance has to be requested or asked for, not sold. This phrase, which is found in all insurance advertisements in India, was mandated by Insurance Regulatory and Development Authority (IRDA). As a consumer, this disclaimer/warning is of utmost importance but often ignored. Insurance should not be SOLD but Solicited. \”Ask, and it will be given to you; seek, and you will find; knock, and it will be opened to you.” ASK YOURSELF…? Do you have any life insurance plan? If yes, are you, aware what kind of plan it is? Do you know, what life insurance plan and right amount of cover you require? Did you buy a Life insurance Plan of an Obligation or by Choice? Did you consult your family before buying Life Insurance Plan? Do you, do right amount of research before you buy a product? Have you ever had an experience an advisor selling you not the right product for your requirement? Are you aware of the Term Insurance? Insurance means pure protection and protection cover means Term Insurance. Are you aware of the commission of the agent or advisor mentioned in the illustration copy? All the above questions are very important before buying any life insurance product. Unskilled agents and advisors end up offering wrong products to their clients, with the greed to make more commission..? The same results in surrender or foreclosure of the policies impacting the buyer’s goals and aspiration. The product like Life Insurance demand more human interface, but most insurance companies are driving more agent’s licences and not giving importance for learning and development for agents and advisors. How Life Insurance Plans are sold today Clients are told by their Insurance Agent or Advisor that……. It is wise to withdraw money from your ULIP and park money in this new Guaranteed Plan. Markets are volatile, I suggest, surrender your existing ULIP and go for any other plan. This is the best product, offers you a guarantee of 11% returns. (They will even show you past performance. Past performance does not guarantee future returns.) If you are not happy with the product close it in 15 days during freelook, get your money back. The awareness of 15 days freelook period is so high, there are high possibilities, in that advisors may even encourage the money laundering? This is the only guaranteed product helps you beat inflation. (Traditional Endowment Plan) With loans its mandatory you must take a policy. It’s one time, you don’t have to pay we will adjust against disbursement. How Life Insurance Policies are sold today especially to illiterates ..? Insurance Advisors or Agents provide incorrect information like KISAN credit card comes with Insurance, they will sell insurance with KISAN Credit Card. Your ULIP offers you flexibility like bank for withdrawal anytime. Government Guarantee on Traditional Products. 9% – 10% Guarantee / Best return compared to Fixed Deposit on Traditional Plans. Mutual Funds is not Guaranteed but Insurance Plan offers Guarantee. You can take as much loan with this Traditional Plan. Surrender your Traditional Plan when you need and take all your money with interest. For Child Education they offer Money Back Plan. In some case’s the Insured was a child and the beneficiary were parent. They will compare Mutual Funds with Life Insurance, it’s like Apple to Orange Comparison. Please don’t get carried away with such type of information Below questions are equally important while applying for any Life Insurance, Has anyone guided you through the importance of Risk Profiler before offering a Unit Link Plan (ULIP)? Were you assured of Guarantee returns on a ULIP? Do you understand Term Insurance is different from an Endowment Plan or a Money Back Plan? Do you think a person can be educated within the time limit of 15 minutes to understand Life Insurance? Approximately what is the duration with an Advisor or an Insurance Agent, before you did sign a Life Insurance contract in the scale of 1 – 60 minutes? How would you rate your advisor in the scale 1-10 on his/her competency and value for your time? Types of Life Insurance Term Plan : A term insurance policy is a pure life cover and its structure is very simple to understand. You pay a premium to an insurance company for a specific number of years and in return, in case you were to meet with an untimely death, the insurer promises to pay the sum assured to your family. It does not come with any maturity benefit (Other term plans come with Return of Premium or TROP). Benefits of Term Insurance Plan: It provides higher cover for lesser premium as compared to other life insurance products. Term Plan with return of premium (TROP) comes with a maturity benefit, which is the sum total of all premiums paid. It comes with riders like Accidental death Benefit Rider, Disability Rider, Waiver of premium, Critical Illness and Terminal illness. Whole Life Insurance Policy: As the name suggests, a whole life insurance policy gives you a cover for life. If the premium amount is paid regularly, the insurer promises to pay the sum assured to the nominee of the policyholder after the death of the policyholder. Apart from the sum assured, it also includes a saving component. Benefits of Whole Life Insurance Policy: Unlike other insurance policies, it does not have a defined term. The sum assured is paid to the dependent upon the death of the policyholder. Apart from the sum assured upon your death, it also has a saving component. You can re-invest it letting the cash amount grow or can remit a part of the cash value during your lifetime. You can also avail a loan against the saving component. Endowment Policies:  Endowment plans are again a combination of savings and protection. If the premiums are paid on schedule for a specific number of years, insurers promise to pay the assured sum to the nominee in case