Life Insurance: Deepak Sood

Last Updated: Mon, Feb 27, 2012 19:40 hrs

I bought a unit-linked insurance plan (Ulip) last year around January. In view of the new guidelines issued for the product, what happens if I stop paying premiums for a product bought after issuance of the September 2010 guidelines? What are the changes to look out for?
Subsequent to the issuance of the guidelines for Ulips by the insurance regulator in September 2010, if you stop paying premiums for a plan issued after that date, the policy will acquire discontinued status. The fund of the policy will be transferred to the discontinued policies' fund and you will be entitled to surrender value after five years from the date of commencement of policy. However, you have the option of reviving the policy by paying premiums within two years from the due date of the first unpaid premium. In order to understand this in greater detail, you can refer to the policy document issued to you by the insurer. Alternatively, you may also approach the nearest branch or your advisor for more information in this regard.

Are there any group life insurance products, such as a family floater health plan? If yes, how does it work?
Life insurers in India currently do not offer family floater plans. Group life insurance products offered by life insurers are available for groups, like, employees of a company, members of a professional association and so on. In this case, the employer or association takes the master policy and the employees or members are insured under the concerned master policy. Sometimes cover is provided to spouses as well.

I am planning to move abroad permanently next month. I hold some life covers in India. I don't want to forego my cover. Should I then shift my policy to a foreign insurer? Is that advisable?
Even if an individual insured in India moves abroad, the life cover provided under the current policy with the present insurer would continue. Portability of life insurance policies is not feasible unless it is the same or related insurer. However, consider buying a new life insurance policy abroad from a foreign insurer, besides continuing with the present policy for extra coverage in the new country.

The writer is MD & CEO of Future Generali Life Insurance. Views expressed are his own. Send your queries at

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