* My insurance company has informed me that my mediclaim policy will be treated as “expired” as my cheque was dishonoured by the bank. I had deposited the cheque with the company three days prior to the due date. Twenty-one days later, when the insurer presented the cheque to the bank, I had somehow run out of funds. I had assumed that the cheque would have been presented and cleared. How do I revive my policy?
Sudesh Adhikari, Mumbai
It is always advisable to renew your policy before the due date or latest by the grace period if applicable. If you don’t renew the policy by then, it will expire and you will lose all pre-existing benefits. Even if you make the payment now, it will be treated as a fresh policy and not as continuation of the old one. It is unfortunate but the responsibility of ensuring that there are enough funds available in your account remains yours.
* What should be the basis for selecting the term for a life insurance policy? Should it be till one’s retirement, earning age or more?
Satveer Singh, Hyderabad
The policy term for life insurance policies should typically be as long as you generate income for your family, till your financial commitments are over and you have saved up for all your goals. Usually, it is till your retirement age. Obviously, if you are very young (say 25 years old) and if your retirement age is 60 years then it may not be possible for you to get a policy tenure of 35 years. In such a case you can take the maximum available tenure.
It is advisable to buy life insurance cover equal to 12 times your annual income. We advise you to buy online term plans as they are the cheapest. Disclose all health-related facts to your insurance company before buying the policy.
* My wife and I are both 44 years old. I want to take a term plan of Rs 1 crore for each of us. Which company offers minimum premium and a plan for the longest duration, that is, till maximum age?
Sayantan Mondal, Kolkata
You have taken the right decision to buy term insurance. You should buy a term insurance for your spouse only if she is earning. As a thumb rule, you should buy life insurance cover equal to 10-12 times your annual income. You require life insurance coverage only till your retirement age. It is advisable to buy an online-term policy as they are the cheapest. Disclose all health related facts before buying the insurance product. Below are the details of an online term-policy that assures a sum of Rs 1 crore. Aviva I-Life Plan — Term period: 16 years; Annual premium for men: Rs 21,050; women: Rs 19,997.
* I am a dentist. I want to take a loan to construct a five-storeyed building in a 2,888-square feet area. But I am in a dilemma because I am planning to shift to England in the next three to four years. Could you please tell me if I will be allowed to leave the country if I take a personal loan? If not, which kind of loan would be suitable for me.
Rakhee Chouhan, Bengaluru
Well there are no lookout notices at the airports for loan defaulters unless it is a fraud. But it is in your interest that you settle all outstanding liabilities before you migrate or at least continue paying the instalments from overseas even after you migrate. As long as you pay your instalments on time, you should face no problem taking up any kind of loan. Do inform the bank when you migrate because they will have to re-classify your loan and some banks may insist on full rep-ayment of the loan.
I want a personal loan. But all I have as address proof is a bank passbook which shows the address of my office. What can I do for arranging address proof?
Shomojit Bhattacharya, Kolkata
You will need proper documented proof of residence such as a registered rental agreement, Aadhar, PAN or voter’s identity. Otherwise it will be very difficult for you to obtain a loan.
Harsh Roongta is CEO at Apnapaisa.com. You can send in your queries to movingmoney@deccanmail.com [1]
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[1] mailto:movingmoney@deccanmail.com