Will you still have life and health insurance coverage if you move abroad?

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I have a 25-year term life insurance 1 crore four years ago. I also have health insurance for myself and my family. I will be moving to Germany soon. Will my life and health insurance remain in effect if I move abroad?

-Name withheld on request

Moving to another country does not affect your life insurance coverage. It remains valid as long as the premiums are paid annually on a regular basis. However, do inform your life insurer of your plan to move abroad.

However, your health insurance coverage does not apply outside of India. A health insurance plan purchased in India is designed to cover the cost of medical treatment in India. Almost all health insurance companies have geographic restrictions that say they will not cover expenses incurred outside of India. For this reason, Indians who wish to study abroad are encouraged not to rely on the health insurance policies purchased in India, but to take out a policy in the destination country.

I’ll be 60 in December. My health insurance needs to be renewed next month. The premium for one year is 24,775, but the company is offering a discount on multi-year policies. A two year policy is for 45,600 and a three year plan is for 66,400. Should I take out a multi-year policy?

-Name withheld on request

From the age of 60, the health insurance premiums skyrocket due to the higher risk. The premium of your health insurance will be significantly higher in the next year. Multi-year health insurance is a good idea because it protects you from premium increases. Yes, prepaying the premium may be a burden, but the discount offered by the company offsets the opportunity cost of the additional amount. However, check whether the company reimburses the premium for the second and third year in case you decide to switch to another health insurance company.

Raj Khosla is Managing Director at MyMoneyMantra.com. Inquiries and views at [email protected]

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