Health Insurance: What happens to a policy after death of an insured member?

There may be an impact of hospitalisation, claims and many others on the advantages accessible in a household floater medical insurance coverage.

As per the official data, the continued Covid-19 pandemic has claimed lives of over 3 lakh Indians thus far and hundreds of individuals are nonetheless dying on a regular basis as a result of viral an infection and issues associated to the extremely contagious illness.

With many holders of medical insurance insurance policies among the many casualties, it’s necessary to know the impact of dying of an insured particular person on an lively medical insurance coverage.

Private medical insurance insurance policies could also be of two varieties – particular person coverage and household floater coverage.

Particular person Well being Insurance coverage Coverage

The advantages and the quantity of sum insured stay mounted for an insured member in a person medical insurance coverage. Nonetheless, if multiple particular person take a person coverage collectively, medical insurance firms present some low cost in premium.

So, hospitalisation, claims and many others of a person don’t have an effect on the advantages of different members in a joint particular person medical insurance coverage.

Household Floater Well being Insurance coverage Coverage

In a household floater coverage, the sum insured floats freely and any member could get the declare settled on hospitalisation. As soon as a declare is settled, the accessible sum insured will get decreased for the remaining interval of the coverage 12 months.

For instance, a Rs 5 lakh household floater coverage is renewed in April yearly. If one of many 4 insured members of the family will get hospitalised and a declare of Rs 3 lakh is settled in August, the sum insured accessible for the subsequent seven months might be Rs 2 lakh.

So, there may be an impact of hospitalisation, claims and many others on the advantages accessible in a household floater medical insurance coverage.

However what occurs when a hospitalised member dies?

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On dying of an insured member of the family throughout hospitalisation, different surviving members could request the insurance coverage firm to course of the declare request and settle the declare.

What occurs to a coverage after the dying of an insured member?

“In case of dying of any insured member, the proposer has to speak the identical to the insurance coverage firm. The deceased insured member can be deleted from the quilt and the premium can be refunded as per the coverage phrases and circumstances,” says T A Ramalingam, Chief Technical Officer, Bajaj Allianz Normal Insurance coverage.

What occurs when the proposer of a coverage himself/herself dies?

“In case of the dying of a proposer, the household must ship a communication to the insurance coverage firm about the identical because the proposer must be modified within the coverage. On this state of affairs a brand new type must be crammed with a brand new proposer. The insurer modifications the proposer and continues with the coverage for different members,” says Ramalingam.

What would occur to a coverage, if multiple member (together with the proposer) died in hospital?

“In such a state of affairs, if it’s a reimbursement declare the declare proceeds can be paid to the nominee as registered within the coverage. For each well being proposal we gather nominee particulars and are printed on the coverage. Nonetheless if it’s a cashless declare, the hospitalisation bills can be paid to the hospital immediately in order that the dependent members aren’t burdened for medical bills,” says Ramalingam.