What happens to my term insurance policy in India if I immigrate to another country? Will I still be covered in case of an unfortunate event?
—Name withheld on request
If you immigrate to another country after purchasing term insurance in India, your coverage generally remains intact. Term insurance policies bought in India typically cover death due to any cause, regardless of where it occurs in the world, with the single exception of suicide within the first year of the policy.
Here’s what you need to know:
Global Coverage: Once you have purchased a term insurance policy in India, it offers global coverage. This means that if you pass away in another country, your nominee will still be able to file a claim and receive the insurance payout.
Exclusions: The primary exclusion to be aware of under term insurance is suicide within the first year of policy purchase. In this case, the insurance company is not obligated to pay the death benefit. They will pay a specific percentage of premiums to your nominee and the policy will terminate.
Continuing the policy: It is essential to continue paying your premiums on time to maintain the policy’s active status. As long as the policy is active, the coverage remains valid regardless of your location.
So, in summary, immigrating to another country does not typically affect the validity of your term insurance policy purchased in India. Your family will still be able to claim the policy benefits, providing you with peace of mind that they will be financially protected, no matter where you reside.
Securing Health Insurance early: Key Benefits
What are the benefits of purchasing health insurance at 25? Since the premium amount increases with age, why shouldn’t I delay it by a year or two?
—Name withheld on request
Purchasing health insurance at a younger age offers several significant advantages. While it’s true that premiums tend to increase as you get older, there are compelling reasons to secure health insurance early. One of the biggest benefits is securing guaranteed coverage. As you get older, the risk of developing health conditions increases. If you wait until later in life to get health insurance and you develop a serious medical condition, you might face challenges getting comprehensive coverage, or it might come with exclusions or higher premiums. By getting insured young, you avoid this risk and ensure coverage for any future health concerns.
Health insurance plans also come with waiting periods for pre-existing conditions, specific treatments, and more. Buying a policy early ensures you meet these waiting periods sooner, allowing you to utilize the full benefits of the plan when needed.
Having health insurance provides peace of mind, knowing you’re financially protected in case of unexpected medical emergencies. This can be a huge relief, especially when you’re young and starting your career or family.
Aayush Dubey is co-founder and research head of Beshak.org