The dying profit paid to a nominee continues to be tax-free in India. However, it isn’t clear after fulfilling the declare course of for nominees (if they’re additionally non- resident Indians, or NRIs), what could be the issue in settling the declare? Second, whether or not the dying profit paid to a nominee could be taxable or tax-free within the palms of a nominee having NRI standing.
—Name withheld on request
Policy 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. As lengthy because the nominee can fulfil these standards, the claims course of is similar for residents and NRIs. Death declare profit is tax-free in India, even within the palms of an NRI nominee.
I’m a 24-year-old scholar. I bought a medical health insurance coverage from an insurance coverage aggregator and need to pay six instalments in a yr for a similar. I’ve paid one instalment as of now. However, I really feel that I don’t want this coverage anymore since I’ve different medical health insurance insurance policies. Can I cease the remainder of the funds? Will it hamper my credit score rating? If so, is there another method I can cancel my coverage with out hurting my credit score rating?
—Devyanshu Gupta
Insurance insurance policies include a free-look interval clause whereby you’ll be able to cancel your coverage, if this doesn’t meet your wants.
The normal 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 distant mode.
You would 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 drive.
If you don’t cancel your coverage, and cease paying the instalments, then it will affect 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, relatively than choosing the purchase now pay later choice, which is akin to taking a private mortgage to purchase medical health insurance.
Abhishek Bondia is principal officer and managing director, SafeNow.in.
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