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Term insurance questions

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01 Mar, 2021 by  ashok T

Hi,


I am looking to buy term insurance from Tata AIA. I am an NRI. I have few questions related to term insurance so thought of posting it here.


1) I have mild BP and mild Asthma, when i asked the representative he is telling like you are so young due to that there is no risk even if you wish to not disclose these health conditions while taking to doctor for medical validation over call. He quoted some 3 year rule , beyond which insurance company has no rights to deny the claim. I am really clueless what should i do in this regard ? Should i go by his words or should i disclose the health condition as is to the doctor even though he will send me for medical check up(which might cost me more being abroad) ?


2) Will there be possibility for the term insurance to get rejected for having mild bp and mild asthma ?


3) Also when i asked about opting for MWPA in policy ? He said that will lead to more work when my spouse try to claim the money in future , he said like trust account needs to be created by that time and it involves more work to get money in her hand. Is that really disadvantage should i proceed without option for MWPA or it has more advantages that i should consider going for MWPA in my policy ? He mentioned like anyways he is nominee only she can get money from us directly and not anyone but i have concerns like if my home loan or some debt is pending they might claim more rights to that money than my wife. I maybe wrong so want to clarify on going with MWPA act or not.

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Term Life Insurance
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Basics of Insurance
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1 Answer

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02 Mar, 2021

Hello Ashok,

Here are the answers to your key questions. 

  1. Hiding facts: Please do not follow any advice that requires you to misrepresent to an insurance company. Any small or big misrepresentation can have a direct impact on your claim, and cause massive inconvenience to your family - defeating the entire purpose of buying term life insurance. Remember the salesperson's incentives are aligned to the policy getting issued one way or the other, and not based on whether your family will get a great claims settlement experience. Would recommend you against even dealing with such a kind of salesperson who is not worried about your claim and only about his/her incentives.
  2. Possibility of decline: Have seen many policies getting issued for people with Asthma/BP. Please be explicit in your declarations. Also, be persistent - you should be ok with a particular insurer declining your proposal - That is not the end of the world, you can still get your policy from a different insurer.
  3. For MWPA you need to just fill an addendum to the proposal form that's all - there is no trust account or anything like that required. This fellow is misguiding you for his own benefits. Please stay away from him.
  4. Choose your insurance advisor carefully - incentives being misaligned (commissions are paid basis policy issuance- which will incentivize misrepresentation), conflicting can result in the wrong, misguided advisory.

Would recommend you to go through our Free eBook on Term Life Insurance:  The Ridiculously Simple Guide To Term Insurance (beshak.org) - It has answers to every other question you may have before buying term life insurance

Hope this helps.

 

Regards.

Mahavir Chopra



 

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03 Mar, 2021
ashok T
Thanks for your detailed response. Yeah always different insurer is an option. But I live in usa and I know HDFC life and tata aia offers term insurance even if people live abroad to buy online. Do you know other insurers offer such for nri people living abroad over online purchase ?
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