Human Life Value in case of Increasing Life Cover for Multiple Term Insurance policies
Firstly, I would like to thank the Founders and the entire team of Beshak for your initiative and contribution in serving the needs of policy holders in a country where the insurance penetration is so low... Upon reading your response(s) towards questions posted in the forum and YouTube videos, I can clearly get the vibe that you cut the crap from insurance and making it simple, credible and trustworthy for every customer and I wish I knew about your platform while buying a policy, nevertheless, I will strongly consider your platform for my future needs and will let my networks know about you.
Secondly, I have a few questions addressed to my agent and insurer (even before the policy issuance) and I have still not got an answer. The Ombudsmen is also included recently and they have asked for few more days' time as they feel it is a complicated issue to address, they have included multiple teams to address this query and none of them still have an answer. Not sure if it is a deliberate attempt to surpass the free-lookup period or if it is really complicated for them to answer. I am planning to lodge a complaint to IRDAI shortly if they still push time... I have a hope that your team of experts will help me in keeping me informed on the puzzle running on the back of my mind.
Background on the query :
I hold an existing term plan with Tata AIA (TATA AIA Life Insurance Maha Raksha Supreme) with a sum assured of 1,00,00,000 INR, issued on 31-Mar-2021, upto 31-Mar-2071, which is active in status, with 3 riders included (Accidental Total and Permanent Disability : 10,00,000 INR, Accidental Death Benefit : 10,00,000 INR and Hospicare Benefit : 1,00,000 INR), when my annual income was 5,00,000 INR, 26 years of age.
I am 28 now, I have purchased another term policy offered by Bajaj Allianz (Life Smart Protection Goal) with a sum assured of 1,00,00,000 INR on 28-Mar-2023, up to 27-Mar-2077 with Increasing Life Cover of 5% per annum (i.e. the sum assured increases 5% every year [5,00,000 INR] for the next 20 years, that makes the total sum assured 2,00,00,000 INR), my existing annual income is 9,80,000 INR, now my age is 28 years.
Please Note : My existing policy details (i.e. of TATA AIA) was disclosed at the time of application with Bajaj Allianz.
The question that I have is as follows :
- I don't see my existing insurance policy's details on the policy document, inspite of disclosing it with the insurer. Could you confirm if this detail (holding existing policy) should ideally form a part of the policy that we purchase ?
- Could you please confirm if I am over-insured based on my existing income (9,80,000 INR) that was declared while purchasing the term plan (Bajaj Allianz) ? Considering the fact that I already have an existing policy and Purchased a new policy with Increasing Life Cover of 5% per annum explained above.
- Could you please confirm if the Human Life Value as per the company's protocols and IRDAI's guidelines allows my nominee to take entire benefit (i.e. in case of an unfortunate event, say after 20 Years) of my existing policy (viz. TATA AIA, 1,00,00,000 INR) AND the new policy (i.e. Bajaj Allianz, 1,00,00,000 INR with increasing life cover of 5% per annum - That eventually will become a total sum assured of 2,00,00,000), which totals to 3,00,00,000 INR (1,00,00,000 INR + 2,00,00,000 INR) ?
- Could you please confirm if I am obligated to inform my existing insurer (TATA AIA) that I have purchased a new policy and share the policy details with them ?
- While buying the new policy (Bajaj Allianz), the agent did not keep me informed on the add-ons offered by the insurer, Now it has come to my notice that there is a wide variety of add-ons available. Considering the fact that the policy is in the free lookup period, could you please confirm if I can request for add-ons ? I am aware that the premium would increase, but can a request be placed ?
- I don't see the medical records being part of the policy document. Could you please confirm if this is valid ? Can I request the insurer to add the medical records part of the policy document ?
Thank you in advance.
Interesting questions , answers :
1. Policy details are part of Proposal form which will be attached in the policy document. If not then , write a mailto Bajaj and let them acknowledge . Add this acknowledgement with policy document.
2. You are adequately insured for your age and income generation. You can get almost 30 time of your current income .
3. Yes , HLV is income generation in next 30 years so nominee will get full claim from both insurers .
4. No , you need not. You have made all disclosure. It remain valid contract.
5. Rider can be added during freelook period . Rider can also be added later on each policy anniversary.
6. Yes , most insurers attach medical records with policy document. If not , then you can demand it .
Also you shpuld read section 45 which protect interest of policy holder after 36 months of policy commencement . No claim can be questioned if all premium are paid in time so ensure to pay all premium in time.