Query on term plan, mediclaim – declaration of state of condition and its impact

POSTED BY ANIKET SHARMA ON January 8, 2013 6:50 pm COMMENTS (2)

One of my friend is suffering from epilepsy which is fairly under control with medication. His wife had been operated for kidney blockage removal some months back.He’s already bought few insurance plans worth some assured of Rs.40 lacs without declaring his disease. Now he wants to buy a better life insurance cover worth Rs.1 cr for himself and his wife each as well as mediclaim cover of 5 lacs for his family and is in following dilemma –
a) Should he declare about his state of health while buying the term plan.
b) If he declares it and the insurance company refuses to accept his proposal, then should he mention in the other company proposal form that his proposal was declined by the previous company.
c) Will mentioning this(that his prposal was refused by previous company) have an impact on the decision making of other company with reference to issue of policy or increase in premium.
d) If he hides that his proposal was refused by previous company then can he face some problem at time of claim.
e) If he hides his state of health,at the time of proposal, can the insurance company come to know of this at the time of claim.
f) Should he declare his state of health while buying a mediclaim cover.
g) If he delcares his disease in mediclaim proposal and does not declares while buying life insurance, will the life insurance company come to know of this at the time of claim.
Pls guide to overcome this

2 replies on this article “Query on term plan, mediclaim – declaration of state of condition and its impact”

  1. I think there is no need to seperatly answer each point here . There is very simple rule

    BE HONESH While giving information , any information hidden means you are planning to pay the premium as charity , you will not get anything .

    Manish

  2. a) Should he declare about his state of health while buying the term plan.

    –>Without fail

    b) If he declares it and the insurance company refuses to accept his proposal, then should he mention in the other company proposal form that his proposal was declined by the previous company.

    –>The likely scenario is premium will be loaded. If refused by one company no obligation for you to mention it to the new company unless specifically ask for in application form

    Unless death is certain in the near future I don’t see an insurer refusing

    c) Will mentioning this(that his prposal was refused by previous company) have an impact on the decision making of other company with reference to issue of policy or increase in premium.

    –>Yes possibly if it is specifically asked for

    d) If he hides that his proposal was refused by previous company then can he face some problem at time of claim.

    –>No. As long as he does not hide his medical condition.

    e) If he hides his state of health,at the time of proposal, can the insurance company come to know of this at the time of claim.

    –>YES! EASILY for conditions you have mentioned.

    f) Should he declare his state of health while buying a mediclaim cover.

    –>YES! Premium will be loaded considerably and/or certain
    types of conditions/hospitalizations maybe excluded

    g) If he delcares his disease in mediclaim proposal and does not declares while buying life insurance, will the life insurance company come to know of this at the time of claim.

    –>Very bad Idea! Waste of premium money!

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