Personal Finance
Sum Assured, on the other hand, is the minimum amount payable by the insurer in case of an eventuality, that is, death of the policyholder
Updated : Mar 05, 2019, 06:35 AM IST
Fund value is applicable to Unit Linked Insurance Plans. Under these plans, the premiums paid by a customer is invested as per their choice of funds. This invested amount along with the returns earned are referred to as fund value and is represented through number of units. Sum Assured, on the other hand, is the minimum amount payable by the insurer in case of an eventuality, that is, death of the policyholder. It is also referred as the risk cover borne by the insurance company.
You can surrender your endowment policies if they have acquired surrender values. Endowment plans acquires surrender value only when premiums for full two - three years have been paid, basis which the surrender value is derived as a percentage and varies from product to product. On the other hand, ULIP plans allow you to surrender the policy anytime. However, if you surrender the policy in the first five years, you will receive the surrender value only after completion of five years, and if you surrender after five policy years you will receive the surrender value without any waiting or charges. For further clarity on the surrender charges please refer to your policy contract or speak to your respective insurance company.
Notwithstanding your medical condition, I would recommend applying for a term insurance. It is pertinent you disclose all relevant details and undergo medical tests to enable your insurer to underwrite your case effectively. Basis the information you have provided, the insurer might ask you to submit your existing medical reports to assess the risk and provide you with the applicable premium on buying the policy.
Any life insurance policies purchased in India provides cover worldwide. However, I would recommend you inform your insurer before shifting abroad.
Sumit Rai, MD & CEO, Edelweiss Tokio Life Insurance
Send your queries related to life insurance to personalfinance@dnaindia.net.