After paying premium for eight years for a moneyback policy, I am no longer able to do so. Can I switch to a lower premium policy? How much money will I get back if I surrender the policy?
— Ashwin Sharma
It is not advisable to surrender a life insurance policy as it’s not just a savings instrument, but also provides protection. We do not know the exact details of your policy; however, you may have the option of utilising the “money-back” provided to fund part of the premiums, which will work out to be lower than the amount required for premium payment. We would advise you to check with your insurer. If you require funds for an emergency, the policy can be surrendered. The value available for surrender will depend on the bonuses accumulated under the policy.
I am 30 years old and single. How viable is it to take a unit-linked policy for health insurance?
— Alok Ranjan
A health insurance plan helps meet the liability of healthcare expenditure. Given that the value of a unit-linked policy depends on vagaries of the market, it is not recommended for health insurance. A pure health insurance product available with a health insurance company would serve this need better.
Can I buy a term plan jointly with my wife? What is the maximum age till one can buy a term policy?
— Suman Deb
Yes, there are plans available in the market that will cover you and your wife under the same product. The life cover under these products is generally available up to 70 years of age.
I want to take a 50-year term plan for my son who is 22. What will be the annual premium?
— SP Mathur
Currently, there are no term plans that provide life insurance coverage for 50 years. However, there are whole life plans where you can pay premiums for up to 20 years and enjoy cover for entire life. On the death of the insured, the nominee gets the death benefit and accumulated bonuses, if any.
How should I look at an investment-cum-insurance policy for my daughter who is 10 years old? I will need a lump sum for her higher education and marriage, say, after 10 and 15 years.
— Vikas Sachdev
A child plan will suit your requirements. It will help accumulate funds for your child’s education and marriage. These plans have an inbuilt feature where the insurer will