Health and term insurance: what they cover and what to check

Health insurance

Pays (or reimburses) hospital bills up to the sum insured. Before buying, read these points in the policy document:

• Waiting periods for pre-existing conditions and certain treatments.
• Room rent limits and co-payment, which can reduce your claim.
• Exclusions, and whether day-care procedures are covered.
• Network hospitals for cashless treatment near you.

Term life insurance

Pays a lump sum to your family if the insured person dies during the policy term. It has no maturity payout, which is why the premium is lower than for other life plans. It exists to replace income your dependants rely on.

Habits that protect a claim

1. Disclose your health and habits honestly in the proposal form.
2. Pay premiums before the due date; lapses can void cover.
3. Tell your family where the policy papers are.
4. Buy only from insurers and agents registered with IRDAI, and never pay premiums into a personal account.

Education only; CyberNewsShield does not sell insurance or recommend plans. Compare policies and read the fine print.