What is the time limit to revive my insurance?

Name withheld on request

As per applicable Irdai regulations, if a policyholder fails to pay the renewal premium before the expiry of the grace period, the policy shall lapse and the policyholder shall not be able to avail any benefits under the policy. However, the policyholder can revive the policy during the revival period. You must contact the insurance company to determine if the policy is within the revival period.

Insurance companies generally provide a revival period of 2-5 years during which policyholders can revive their lapsed policies by paying the due premiums and meeting any additional requirements. The duration of the revival period depends on the insurance product, terms and conditions of the policy. You should ensure that the premium is paid on time so as to avoid lapsing and lapsing of the policy.

I have a family history of high blood pressure. Do I need to get a medical check-up done before buying a term plan?

Name withheld on request

Insurance is based on trust and transparency, and it is advised that all information regarding your life insurance policy is shared by the customers. This enables a smooth claim process, which will be the most important step in the life insurance journey.

Term plans usually offer higher sum assured for a nominal premium amount, and involve higher risk for the insurer. Hence, most of these policies are medically underwritten. In your case, to assess the potential risk, you may be required to undergo a medical examination subject to the underwriting policy of the life insurer.

I started National Pension Scheme (NPS) account for my 55 year old mother three years back. Now we are planning to withdraw the invested amount before its maturity. Is there any penalty for withdrawing money from NPS before the age of retirement?

Name withheld on request

As per the rules of NPS, a subscriber can voluntarily exit the scheme before attaining the age of 60 years, provided he has subscribed to NPS for a minimum period of at least five years.

If the accumulated pension wealth is equal to or less than 2.5 lakh, you can withdraw the entire amount. However, if the corpus is high, you should use at least 80% of the accumulated pension wealth to buy an annuity plan that provides monthly pension. The remaining 20% ​​can be withdrawn as a lump sum amount.

A subscriber can withdraw funds from the scheme before the age of retirement only under specific circumstances, such as treatment of specified illness or death of the subscriber. If a subscriber withdraws from NPS before the age of 60 years, except in the above circumstances, he/she will have to pay a penalty of 1% of the total accumulated pension wealth, subject to a minimum penalty of Rs. 1,000. This penalty is in addition to the tax implications that may arise from premature withdrawal.

It is important to note that premature withdrawal of NPS corpus may result in a lesser retirement corpus, as you will miss out on the benefits of compounding and long-term growth of investments.

Sameer Joshi is the Chief Agency Officer of Bajaj Allianz Life Insurance.