Insurance queries answered by Khalid Ahmad, Head-Products, PNB MetLife

I have a life insurance endowment product with a sum assured of Rs 10 lakh with annual premium of Rs 49,000. I have paid Rs 2.45 lakh as premium. The policy started in 2011 and has a term of 21 years. Should I surrender the policy now?
Life insurance products are designed with a long-term objective to provide protection and savings benefits for key milestones. You have had the policy for the past 5 years and it looks like a traditional product. Before taking any decision on surrendering the policy, you should speak with your insurance company to understand if there are any bonuses attached to the policy and what would be the surrender value. As I mentioned earlier, life insurance is a long-term protection and savings plan bought with the primary objective of protecting your family's financial future. Hence, I would strongly recommend that you continue with your policy.

I would like to know if insurance company will honour claim if I pass away after 34 years or more. What is the impact of Section 45 of Insurance Act 1938?
All life insurance companies are bound to honour claims provided the policyholder has disclosed required information in utmost good faith at the time of application. I would encourage you to be transparent in filling your health, finance and other critical disclosures. You should fill the form yourself with guidance from the insurance company representative.


I have two term plans for Rs 60 lakh. Am I entitled to hold two term plans? Will both of them pay at the time of crisis?
It is perfectly fine to have two term insurance policies. However, you are required to disclose all your existing life insurance policies while applying for a new term plan. Assuming that you have made the relevant disclosures at the time of application, your nominee will be entitled to receive benefits from both the policies.

I am planning to go to the US for higher education. Apart from travel and health insurance, should I also buy life insurance and what should be the sum assured?
First of all, it is good to see that you are considering insurance at a young age and have already considered travel and health plans. I am assuming that you have taken an education loan as higher education in the US is quite expensive. If you have a loan, I would recommend that you take a loan protection cover. Just in case you are unable to repay the loan, due to an unfortunate incident, the burden will not be on your parents.

(Please send your queries on Insurance to et.insurance@timesgroup.com.)