I realised that my life insurance agent has left the company when I called her to give the premium cheque this year. What will happen to my policy now?
– Kinjal Gupta
In the event of an agent ceasing to be part of the insurer, the insurer is allowed to allot any of the orphan life insurance policies to active individual insurance agents of the insurer. The purpose of the allotment is persistency and rendering effective policy servicing to the policy holder. Further, customers today have multiple avenues to continue paying their renewal premiums via online/digital avenues i.e portal/IVR/or mobile payment apps, etc. You may also contact the company call center and look for nearest branch address to submit the premium cheque. Nowadays most companies allow policy servicing requests to be placed online.
I have twin sons aged five years. I want to invest money now so that there is money by the time they are in college that is after 10 years. What kind of investment should I do? I also want to do tax saving
– Suparna Kambli
There are many value-packed investment plans which you can opt for accumulating funds for education and will offer tax benefits like ELSS, PPF, five-years bank deposits, child plans from life insurance company, etc. ELSS provide tax deduction under section 80 C but are now taxed @10% on long-term capital gains exceeding Rs 1 lakh in a financial year. Bank deposits' interest is also subject to income tax.
However, it is also important to make sure that your planning for your sons' future education needs remain undisturbed even when you are not around. In a child plan, waiver of premium is a key feature, which means, in case of unfortunate death of the policyholder (parent) during the policy term, company will pay the lumpsum amount as death benefit to the nominee upfront which can be utilised for recurring education needs of the child. At the same time company will continue paying the premium on behalf of the policyholder and maturity benefit will be paid on completion of the term thus covering all eventualities and fulfilling child's education needs.
Hence apart from tax benefits, you should select a bucket of investment options which is suits your risk appetite and secures your children's future keeping in mind the time horizon.
Anuj Mathur, MD and CEO, Canara HSBC Oriental Bank of Commerce Life Insurance
Send your queries related to life insurance to personalfinance@dnaindia.net.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Life Insurance")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}