The dying profit paid to a nominee continues to be tax-free in India. Nevertheless, it isn’t clear after fulfilling the declare course of for nominees (if they’re additionally non- resident Indians, or NRIs), what can be the issue in settling the declare? Second, whether or not the dying profit paid to a nominee can be taxable or tax-free within the arms of a nominee having NRI standing.
—Identify withheld on request
Coverage taken in India would settle claims in Indian rupees solely. So, to avail of the declare, the nominee ought to have an Indian checking account. So long as the nominee can fulfil these standards, the claims course of is similar for residents and NRIs. Demise declare profit is tax-free in India, even within the arms of an NRI nominee.
I’m a 24-year-old scholar. I bought a medical insurance coverage from an insurance coverage aggregator and should pay six instalments in a 12 months for a similar. I’ve paid one instalment as of now. Nevertheless, I really feel that I don’t want this coverage anymore since I’ve different medical insurance insurance policies. Can I cease the remainder of the funds? Will it hamper my credit score rating? In that case, is there another means I can cancel my coverage with out hurting my credit score rating?
—Devyanshu Gupta
Insurance coverage insurance policies comprise a free-look interval clause whereby you possibly can cancel your coverage, if this doesn’t meet your wants.
The usual free look interval is 15 days. In some instances, this might prolong to 30 days. The latter is relevant in case of digital insurance policies or insurance policies purchased by means of distant mode.
You’ll obtain a refund of 100% of the premium quantity paid, topic to deductions for prices incurred by the insurer on medical underwriting and proportionate threat premium for the times for which coverage has been in pressure.
If you don’t cancel your coverage, and cease paying the instalments, then it will impression your credit score rating. Most well being plans have a built-in installment mode of cost.
For private insurance policies, I like to recommend choosing the installment facility supplied by the coverage itself, fairly than choosing the purchase now pay later possibility, which is akin to taking a private mortgage to purchase medical insurance.
Abhishek Bondia is principal officer and managing director, SecureNow.in.
Supply: Live Mint