In a recent case a life insurer declined paying the dependents of a deceased policyholder their breadwinner’s life insurance money on the ground that he violated terms of the policy. The violation was in respect of hiding vital information relating to the policyholder’s heath condition.
In a different case a prospective customer claimed he was refused cover by life insurers on the basis of his health condition and age. When, eventually, his application for a life policy was accepted, the cost was exorbitant and seemed discriminatory. A move by the UK government to end discrimination by life insurance companies, at least as it affects age, is currently brewing a controversy.
The two cases highlighted above show that while every policyholder owes it as an obligation to make known to their insurer their existing health condition while taking out the policy, as well as changes that may occur afterwards, there is also a risk to it. These changes may not be restricted to one’s health but other circumstances that could significantly impact one’s lifestyle.
Personalised medicine and privacy
Technology is changing the way information relating to one’s health can be obtained. A new development is the possibility of easily obtaining individual DNA sequences. What it does mean is that genes that are highly likely to cause diseases in an individual could be identified and treated directly. But it also means that one could know their chances of suffering from different diseases. Armed with such information, which is very personal to one and private, the question arises of whether one is still obliged to divulge such information to an insurer.
The process of signing up to a life insurance policy involves disclosing health information relating to one, one’s parents and even members of one’s immediate family, in the case of a married person with children. Holding back any vital piece of information, it is usually made known, could result in the invalidation of the policy.
But with genetic screening going the extra-mile to discover the critical illness that could be suffered by a policyholder or prospective customer in years to come what right has an insurance firm to such information?
The Australian example
Already genetic screening in Australia has given rise to a serious debate regarding the amount of detail insurers need to know about a customer. It was revealed that a number of people whose genetic screening results show that they were likely to suffer serious diseases in future have had their life insurance applications declined.
According to the country’s Investment and Financial Services Association, half a million Australians applied for life insurance in 2007. While four hundred of the applicants disclosed a previous genetic test, 20 per cent had their applications rejected. But it was just two per cent that was directly affected by genetic test alone.
Fear of the unknown
Presently, genetic screening is not a requirement for a life insurance application in the UK. But as it spreads fast across the globe, one may not be so sure that in a few years to come genetic test won’t become an issue.
In the meantime, insurers will continue to insist on knowing the whole truth about a customer’s medical history, including other issues that could impact on their policy. One’s privacy, to this extent, is shared with the insurer and is used in dealing with issues relating to their policy for as long as it matters.
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This plan appears to be skilled insurance plan from LIC of India . It contains the features of customary plan and the flexibility of the unit joined plans. Jeevan Saral offers higher insurance cover, fast returns, and some form of fluidity. This plan is more accurate for employees especially for those who are seeking life insurance through a saving salary scheme.
Jeevan Saral is an Endowment Assurance plan where the proposer has simply to choose the amount and mode of premium payment. The plan provides financial protection against death throughout the term of the plan. Jeevan saral is Monthly Recurring insurance plan where the policyholder can get or acquire 250 times monthly premium plus total premium paid and along with Loyalty Additions.
Life insurance is also stated as the self-assurance of your life. It offers the best policies and the financial security to you as well as your family . The policy means an official written agreement between the policy holder and the life insurance company. Life Insurance is more than an investment to save your taxes.
When setting up a life insurance plan, managing the cost of the insurance is usually a top priority. There are several ways to do this. For example shopping around and comparing life insurance policies providers and plans will help to make sure the life insurer you choose is cost effective. Costs can vary considerably between life insurance companies, so a side by side comparison is important. Also selecting the right kind of insurance for your situation is vital.
A contract between the policy holder and the insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person . The life insurance official contract comes under two classes that are, protection policy and investment policy.
Life Insurance Corporation of India has come out with a new Komal Jeevan policy to realize the dreams of each and every parent for providing higher education to his child and satisfying the need of financial support for entering business and career. It is necessary to provide the foremost education to your children who can be very costly. Fortunately, the sooner you start investing for their education, the more flexibility you will have and will enable your children to achieve proficiency in their career tasks. Komal Jeevan can be purchased by any of the parent or grand parents or legal guardian for a child aged between zero year to ten years. The payment of the premium stops at the age of 18 years .
Life Insurance Corporation is the leading state-owned life insurance business of India. It is fully owned by the Government of India. LIC of India today is the largest life insurance company in India with 8 zonal offices, 100 divisional offices, 2048 branch offices and a network of over 10 lakh agents. If you want financially protect your family or dependents so as to maintain a standard life style then you can consider purchasing life insurance.
