Claim can be rejected if you don’t disclose health condition

The Ulips available today have standardized cost structures and features. The most material differentiation possible in a Ulip is investment performance. On that measure, your Ulip is a bottom performer. Its internal rate of return is less than negative 25 % per year. In comparison, the three-year category returns for large-cap equity funds is -1.7% and small- and mid-cap equity funds is -2.1% per annum. I would recommend that you stop paying premiums and invest your money elsewhere. Your Ulip fund will move into a discontinuance fund where you will earn about 3% per annum and can withdraw after five years have been completed.

Non-disclosure of material health conditions is a valid ground for claim repudiation. In your case the situation is mitigated a bit as death occurred for a reason not related to the insured’s health. There is a slim chance that the claim will get paid if you approach the ombudsman and have a case that the level of hypertension was not significant or that the insurer would have underwritten the case even if the hypertension was known. The likelihood of a favorable decision improves if the insurer had conducted a health check-up prior to issuing the insurance.

I want to take insurance for my 10-year-old son. I have been told that I should take a child care plan. Which is more beneficial, a Ulip in my name or a child care plan?

Child care plans refer to the purpose of the insurance. Ulip Insurance India traditional policies refer to the product platform used to deliver insurance benefits. A good child plan meets the following three criteria. First, the life insured is the parent who earns. Second, it has a waiver of premium benefit so that if the life insured dies the policy continues unchanged. Third, since child plans tend to be long-term in nature, the insurance should have some exposure to equity. For these reasons I believe that equity- oriented Ulips with the parent’s life insured and a waiver of premium benefit are best.

Source: http://www.articles.mastercraftindia.com/Article-Site/claim-can-be-rejected-if-you-don%E2%80%99t-disclose-health-condition