Health Disclosure During Life Insurance Purchase: A real life example

June 29, 2013

Insurance

Many a times people purchasing life insurance policies, do not take care to fill the health declaration form seriously or they themselves want to declare but the Agents do not disclose properly. How this mistake can prove your loved ones costly in your absence, you ‘ll understand after going through the next few lines below.

The Background- Mr. Pradeep Dumbu, one of the member of our Facebook Group shared his own experience related to health disclosure while purchasing a Life Insurance Policy.

Quote – I belong to a village in Andhra Pradesh. My father was an Investor in Sri Ram Chit Funds. Later on the chit collection agent sold an endowment policy from Sri Ram Life Insurance Company of Sum assured 100000 Rs. to My father in 2006. At the time of filing the application form, my father told the agent that He is diabetic for past 20Y but the agent told that it’s not an important issue & as the sum assured was small, no Medical test was carried & policy was issued. My father were paying the prem. regularly. Last Year my father died & when me & my mother filed claim, the Insurance Company denied the claim, stating the reason that Father’s Health Condition of being Diabetic was not disclosed at the time of purchase of the policy. What should I do now to get our insurance amount from the insurance company?

Unquote- All of us now can understand that Insurance company is not honoring even a small claim amount of 100000 Rs. & being an endowment policy, the overall deal is not that much in loss to Insurance Company. Still this real life incident teaches us a valuable lesson. What can be the impact of wrong or understated health declaration while purchasing a Term plan where Prem. is very less & the Sum assured is very high?

What’s your take now on reporting your & your family’s health condition & history while purchasing a life cover? Please share your learnings in the comment section below.

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Life Insurance: Real Life Example

June 28, 2013

Insurance

Many a times, we receive e-mails from the readers to thank us. Once in a while we do receive some interesting e-mails. here I’m reproducing one such mail received from Mr. RajKumar.

Quote –

Manish,Ashal – I should thank you as much as I can for the financial awareness that you have set on me. This is one incident that happened @ my home today. I wanted to share with you.
I have a 7 month old baby. We used to make him sleep in a cradle. Not a wooden cradle. We used to hang a big cloth stitched specifically for making the baby sleep. We use this from the cieling of the wall and swing it to make the baby sleep. Off late, we started placing a small bed below the cradle so that even if the baby falls from the cradle – it ll land up safe rather than hitting hard on the floor.When I started using this bed below the cradle, I explained my wife this is called as Insurance 🙂 (Thanks to the 1st book where Manish explained about the insurance options that we use on a day to day life like Helmet etc).
Today,my kid slept and I moved out of the room. After sometime, I heard my baby crying. When I went there I saw my kid on the floor and partly on bed. He actually fell from the cradle. The good part is there was no injury to him.. He was ok in sometime.
After all the chaos at home, I told my wife our insurance saved us.. She laughed 🙂 Had this been a thin sheet of cloth – it should have been Jeevan Anand (which was the only insurance that I had before I knew Ashal).. This bed was better which is pure term insurance 🙂 It really taught me a good lesson today. More importantly, my son gave me this wonderful lesson as a gift to me on my birthday today.
I would like to thank both of you for all the knowledge that you have shared to me so far.
Unquote –
That was a simple yet effective example from daily life for what is Risk coverage all about. What are your learnings from the post. Please feel free to share.

 


Check your Financial Knowledge

June 5, 2013

Question mark

Dear Friends, we were running a contest to all of you, the readers & members of Asan Ideas For Wealth.

The same is close now. The Winner is Mr. Prasad from Banglore.