Insurance Uncovered

My daughter is in the third year of graduation. She will be 20 years old this month. I wish to subscribe to life and health policies for her. She is part of my family floater policy, (Apollo Munich) Health Wallet. Can I take a (Apollo Munich) iCan policy in her name? As per your advice, I had recently subscribed to iCan policies, individually for me and my wife, for a sum insured of ₹20 lakh each. Also, please suggest if I should take a term life insurance for her. Is it the right time?

I have two term life policies from LIC — Jeevan Anand and Ashadeep with a sum assured of ₹5 lakh each. One will mature in 2023 and the other in 2024. I am now 50. I took the above policies in 2004 and 2008, without much knowledge about differentiating between insurance and investment. If I plan for a ₹50-lakh sum assured cover now, what could be the approximate premium? Please suggest a few policy options.

G Surendra

Since your daughter has not started working and is dependent on you, there is no immediate requirement to take a life insurance policy for her. Once she finishes her graduation and starts working, she may consider taking a term life policy. I understand from your previous mails that you have a ₹5-lakh sum insured floater health plan under which your daughter is also covered. If you think the risk cover may not be sufficient to cover all three of you, it is suggested that you take a super top-up cover for ₹2-3 lakh. The top-up cover will mean only a small additional premium outgo, but will take care of the expenses when they shoot over ₹5 lakh. Apollo Munich iCan is an indemnity plan covering cancer. If there is any health concern, you can take this for your daughter, but otherwise, given her age, a regular health policy will do for now.

Jeevan Anand is a whole life policy. It pays the sum assured twice — once when the policy matures and next when there is a death claim (after the policy matures). Ashadeep is a combo plan of life and health insurance, where the sum assured is paid on death or on occurrence of any of the listed critical illnesses. But the two policies, even put together, isn’t giving you enough life risk cover.

You can consider a plain vanilla term cover for ₹50 lakh from LIC, Max Life, ICICI Prudential or HDFC Life. These are insurers with the highest claim settlement records. If you take a cover for the next 10 years, the annual premium on a ₹50-lakh sum assured policy will be ₹12,000-14,000. If you want a cover up to 75 years of age, the premium will be ₹17,000-20,000. The maximum cover available with life insurers is till 85 years of age.

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