Insurance of Ladies and Minors

Proposals on the lives of minor boys and girls who have not completed 15 years of age will be considered only under Children’s Deferred Endowment Assurance and Children’s Anticipated Plans. Let’s know more about insurance of ladies and minors.

The proposals on the lives of minor boys and girls who have completed 15 years of age will be entertained only under Limited Payment Life Endowment Assurance, Double Endowment, Guaranteed Triple Benefit, Anticipated Whole Life, Convertible Whole life Assurance, Children’s Deferred Endowment.

Assurance and Children’s Anticipated Plans. Proposals under progressive protection plan will be considered in the lives of minor boys and not girls provided they have completed 16 years of age. All such proposals will be entertained subject to medical examination except under Children’s Deferred Endowment Assurance and Children’s Anticipated Plans where the deferment term is 10 years or more.

The minor girls can get the benefits of insurance coverage subject to the condition that she should be studying in the school/college, the maximum limit of Rs. 1 lakh on total sum assured, usual extra-premium for sex if applicable, the amount of insurance would depend, inter Alta on the financial status of the family and amount of insurance on the lives of parents, brothers, and sisters.

The proposal form must be signed by the father/mother. In absence of both the parents, it will have to be signed by the legal guardian of the minor. A policy issued on the life of minor under a plan of insurance, except the legal guardian of the minor.

A policy issued on the life of a minor under a plan of insurance, except the plan Endowment, children’s Deferred Assurance or Children’s Anticipated Plan will automatically vest in the life assured on his attaining the age of majority, provided no application for surrendering the policy is revived before the date on which the life assured attains majority.

A policy under children’s deferred Assurance or Children’s Anticipated Plan will vest in the life assured on the Deferred date as per Special Provisions applicable to the policy and it is in no event assignable by the proposed before the deferred data.

Such policy is not assignable by the proposer to any person other than the life assured. If the policy issued on the life of minor has vested in the life assured, the life assured may appoint a nominee/s or create an assignment, therefore.

Precautions and Conditions: The treatment of proposals on the lives of ladies and minors should be made at extra precautions because physical and moral hazards are very high in such cases. The proposed lines should have a genuine need for life insurance, adequate income, and employment, education standard, marital status, social background etc.

If the merit of a proposal in unwarranted for acceptance on above grounds, the proposals may be rejected. The terms and conditions laid down for a treatment of such proposals should be maintained.

The following rating is done for female lives under endowment Assurance and Whole life Plans:

Category of lives

Rating

Amount of Maximum insurance

  1. Women with earned in-come
Same as in the case of men Same as in the case of men.
  1. Women with unearned income attracting income tax or with a size able personal properties likely to attract estate Duty.

-do-

Equal to 5 times her won average assessed income for the last 3 years but not exceeding the insurance cover on husband’s life or Rs. 5, 00,000 whichever is lower. For Estate Duty purposes, up to the amount of estimated estate Duty.
  1. Women no covered by 1 and 2
Extra 3% (a)  Single woman on consideration of insurance needs, subject to a maximum of Rs. 1, 00,000, the actual amount would depend on the financial status etc., of the family and the father and other insurable members of the family being sufficiently insured.

(b)Married women-Not exceeding 3/4 the of husband’s insurance in force for full sum sure with a maximum of Rs. 2.50 lakh.

(c)  Widows-on consideration of insurance needs.

No policy is issued under Convertible for assurance on the lives of ladies who have not undergone normal full-time confinements are accepted with the first pregnancy clause. These clauses may be removed on payment of a single extra premium of Rs. 5 per thousand.

This clause may be waived in the case of ladies who may be expected to go to qualified doctors for delivery.

  1. Proposals for assurance on the lives of ladies after a childbirth are considered only six months after delivery. Where menstruation has not been re-established even after six months from the date of delivery the acceptance of proposals in such cases are subject to the one-year pregnancy clause.
  2. Proposals on the lives of ladies who are pregnant at the time of proposals are not entertained
  3. Proposals are not entertained on the lives of ladies who observe purdah whether full or partial.
  4. Proposals are no entertained on the lives of ladies who have had many miscarriages.
  5. Proposals are not entertained on the lives of those who, though not divorced, live separately from husbands as a matter of precaution against contracting an infectious disease from which the husband is suffering or for any other reason which raises reasonable doubts as to moral hazard.

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