I wish to convert my life insurance policy into demat
form. How do I go about it?
To dematerialise an existing policy, you can call up the
customer services team and request for details. The insurer will share the list of e-
repositories they have tied up with.
Choose the repository, fill up an application form to get your
policy converted into e-format. The cost for this is borne by the insurance
I have a term cover of Rs 50 lakh, but I want to boost
my protection portfolio with personal accident and critical illness insurance. Should I look
at buying rider benefits from my existing insurer or should I opt for such covers from
There are different types of health covers available.
Indemnity products:This is popular and
called mediclaim which cover expenses related to hospitalisation. The claims are settled by
the insurer either on a cashless basis through tie-ups with hospitals or by reimbursing
expenses on submission of bills. You pay regular premiums which are non-refundable. The
policy will lapse if you fail to pay premiums.
Riders:These are simple addons to your
existing life insurance policy. At a small premium, you can increase protection cover by
taking riders like critical illness, accidental death, disabilities, etc. Some insurers allow
this at the time of policy purchase and in some cases you can buy this during the course of
I would recommend that you check if your current insurance
policy allows an add-on.
Benefit-based plans:These are now picking up
as they pay a fixed amount on diagnosis of a particular disease and can be used as substitute
for loss of income due to ill-health. These plans do not require any bills to be submitted as
the full sum assured is paid out on detection of the covered critical illness. This ensures
that the family has adequate funds to meet the unplanned medical expenses and get the best
With fewer burdens of increased out-of-pocket expenses, you can
focus on recovery instead of expenses. To ensure that you are completely prepared to meet all
financial challenges, it is advised to opt for a fixed benefit plan along with an indemnity
based cover or riders as they take care of different aspects. While the indemnity plan or a
rider would pick up hospitalisation bills, the benefit policy will take care of the recovery
expenses through the guaranteed sum assured.